AbbVie stock inched ahead Wednesday despite a sales miss for its biggest moneymaker, Humira, as biosimilar competition heats up.
Humira treats inflammatory conditions like rheumatoid arthritis. Fourth-quarter sales rose 3.5% to $5.33 billion, but came in below estimates for nearly $5.4 billion, according to reports. Biosimilar rivals in Europe are pressuring sales. U.S. biosimilars are due to launch next year.
Edward Jones analyst Ashtyn Evans noted AbbVie's new inflammatory drugs — Rinvoq and Skyrizi — are growing strong, and could help make up the gap as Humira faces new rivals in 2023. Rinvoq sales soared 84.4% in the fourth quarter. Skyrizi sales rocked 70.5%.
"The company also continues to make progress in its pipeline of new drugs," she said in a report to clients. "While the near-term trends have been positive for AbbVie, we continue to have concerns around longer-term sales growth once generics of Humira enter the U.S. market in 2023."
She kept her hold rating on AbbVie stock.
AbbVie Stock: Sales Lag, But Earnings Top
During the quarter, sales jumped 7.4% to $14.89 billion. That lagged AbbVie stock analysts' call for $14.95 billion. But earnings beat expectations at $3.31 per share, growing 13.4%. Analysts expected AbbVie earnings of $3.28 a share.
The Humira miss was offset by strength in AbbVie's aesthetics business and its eye care medicines. Globally, cosmetic sales of Botox surged 27% to $626 million. Juvederm, a lip and wrinkle filler, brought in $432 million, soaring 30.6%.
AbbVie also sells Botox as a treatment for conditions like migraines and excessive sweating. Sales for that use jumped 18.3% to $671 million.
Meanwhile, overall eye care sales edged up 3.6% to $960 million. Mizuho Securities analyst Vamil Divan said sales of eye drug Restasis topped analysts' expectations by $86 million. Restasis brought in $364 million, up 5.7%.
Less bullishly, cancer drugs Imbruvica and Venclexta missed by a respective $65 million and $12 million, he said. Sales of Imbruvica fell 2.7% to $1.39 billion. Venclexta revenue, on the other hand, popped 33.3% to $488 million.
Divan kept his buy rating and 154 price target on AbbVie stock.
For the year ending in December 2022, AbbVie sees adjusted earnings of $14-$14.20 per share. AbbVie stock analysts predicted adjusted profit of $13.99 a share and $59.85 billion in sales.
On the stock market today, AbbVie stock rose 1.2% to 138.62.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
