AbbVie expects 37% decline in Humira sales following new biosimilars hitting the US market
AbbVie Inc has announced that it expects to see a 37% decline in sales of its flagship rheumatoid arthritis drug Humira, as new competition emerges in the form of cheaper biosimilar drugs. The company expects its sales to stabilise by the end of 2024.
New drugs Skyrizi and Rinvoq also treat autoimmune disorders, so are part of the reason that AbbVie’s sales have dropped.
Investors will be reassured to learn that the company expects its 2024 earnings to be no lower than $10.70 per share, similar to its 2023 predictions of $10.70 to $11.10 per share. AbbVie’s shares were also up more than 3% despite the 2023 profit outlook falling short of Wall Street estimates of $11.65 per share.
According to vice chairman Robert Michael, the sales decline is likely to be driven by both volume erosion and price erosion, adding: “Now it’s a question of what will the volume erosion look like?”
Commenting on the company’s financial year, Richard A Gonzalez, chairman and chief executive officer of AbbVie, said,
“2022 was another highly productive year capping a decade of outstanding performance. Since our inception, we have built a diverse portfolio of growth products with significant leadership positions, developed a robust pipeline of innovative assets and created a culture of strong execution. Looking forward, we have a solid foundation, which will allow us to absorb the US Humira loss of exclusivity, return to strong top-line growth in 2025 and drive top-tier financial performance over the long term.”
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