Shares of AbbVie fell Friday after a “temporary economic headwind” stalled cosmetic drugs, including face-filling Botox, for the third quarter.
Overall, AbbVieof the (ABBV) the medical aesthetic division generates $1.3 billion in revenue. According to rigorous reporting, sales were up 4%. The larger segment in the US saw sales drop more than 7%. Offsetting that, international sales increased by nearly 26%.
CEO Richard Gonzalez notes that the immunosuppressants Skyrizi and Rinvoq have helped minimize cosmetic underperformance. The duo will be crucial in the future when AbbVie’s biggest drug, an immunotherapy treatment called Humira, is no longer protected by patents.
“We continue to see strong momentum from our key immunology assets, Skyrizi and Rinvoq, and this performance – combined with the strength from other growth drivers in the diversified portfolio our form – has minimized the impact of temporary economic hardships on our cosmetic products to deliver another quarter of strong results,” he said in a report.
But in the morning trade on stock market todayAbbVie stock toppled 3.2%, trading near 148.60.
AbbVie stock: Mixed third quarter
The third quarter was generally a mixed bag for AbbVie. Adjusted earnings beat views at $3.66 per share, but total revenue came in at $14.81 billion. Sales inched up about 3% higher and earnings increased by more than 29%.
But revenue from Humira fell short of expectations at $5.56 billion. Piper Sandler analyst Christopher Raymond said that while sales rose 2.5%, it was still below expectations at $5.59 billion. Meanwhile, Skyrizi beat forecasts by nearly $1.4 billion, but Rinvoq’s $695 million in revenue was missed.
In the cosmetology division, Botox sales increased nearly 17% to $637 million while Juvederm revenue dropped nearly 1% to $352 million. The Botox sales missed the $641 million forecast, Raymond said, but Juvederm still matched.
Both cancer drugs, Imbruvica and Venclexta, lagged at $1.14 billion and $515 million, respectively. Imbruvica’s sales grew more than 17%, although Venclexta posted a single-digit increase. Meanwhile, the neuroscience franchise has failed “heavily,” Raymond said. He noted misses from the Parkinson’s drug Duodopa and the migraine treatment Ubrelvy. Botox therapy sales matched forecasts at $699 million.
For the year, AbbVie narrowed its earnings outlook to $13.84-$13.88 per share, but kept it mid-range. The company did not provide sales instructions. AbbVie stock analysts forecast adjusted profit of $13.85 per share and $58.92 billion in revenue.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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