Abbvie ((ABBV)) has held its Q4 earnings call. Read on for the main highlights of the call.
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AbbVie’s recent earnings call highlighted a resilient performance in 2024, showcasing strong growth in its ex-Humira platform and advancements in neuroscience and oncology. Despite significant challenges such as Humira revenue erosion and economic headwinds in the aesthetic market, the overall sentiment was optimistic with a focus on robust growth anticipated for 2025.
Record-Breaking Revenue and Growth
AbbVie achieved a record-breaking year with full-year adjusted earnings per share of $10.12, surpassing initial guidance by $0.49. The company reported total net revenues of $56.3 billion, exceeding expectations by over $2 billion and marking a 4.6% increase on an operational basis.
Strong Performance of Ex-Humira Platform
The ex-Humira platform demonstrated impressive growth, with full-year sales increasing by more than 18% and Q4 revenue growth accelerating to 22%. Skyrizi and Rinvoq are key drivers, projected to generate nearly $24 billion in revenue by 2025, a significant growth of over $6 billion.
Robust Neuroscience and Oncology Growth
AbbVie’s neuroscience division is set to reach $10 billion in sales by 2025, reflecting a $1 billion increase. The oncology sector also shows promise, with substantial contributions from products like Venclexta and Elahere.
Pipeline Advancements and Approvals
AbbVie has made significant strides in its pipeline, with recent approvals such as Skyrizi for ulcerative colitis and Epkinly for follicular lymphoma. The company has also signed over 20 early-stage deals, enhancing its pipeline in key areas like immunology and oncology.
Humira Revenue Erosion
Humira faced a steep revenue decline, with global sales dropping by 48.7% due to biosimilar competition, amounting to over $1.6 billion. This erosion is a notable challenge for AbbVie.
Aesthetic Market Challenges
The aesthetic market experienced a downturn, with global sales declining by 4.4% operationally in Q4. The U.S. market saw a 5% drop, while economic conditions in China added further strain.
IMBRUVICA Revenue Decline
IMBRUVICA’s global revenues fell by 6.2% to $848 million, affected by ongoing competitive pressures in the chronic lymphocytic leukemia market.
Forward-Looking Guidance
AbbVie’s forward-looking guidance projects robust growth for 2025 and beyond, with mid-single-digit revenue growth anticipated. The ex-Humira platform is expected to surpass previous peak revenues, with Skyrizi and Rinvoq projected to contribute significantly. Neuroscience and oncology segments are poised for continued expansion. Despite challenges in the aesthetics segment, a high single-digit CAGR is expected through 2029. AbbVie aims to sustain growth through its diverse portfolio and strategic pipeline advancements.
In summary, AbbVie’s earnings call conveyed a positive outlook despite certain market challenges. The company’s strategic focus on its ex-Humira platform, neuroscience, and oncology is set to drive substantial growth, while pipeline advancements continue to bolster its future prospects.
