The Arthritis Drug Faces Rising Competition

AbbVie, a pharmaceutical firm, issued a warning on Friday regarding the declining sales of its blockbuster arthritis drug, Humira. The company anticipates that the market share of Humira will continue to decrease due to competition from biosimilars, which are close copies of the drug. This announcement caused shares of AbbVie to slump on Friday.

Key Takeaways

• AbbVie cautioned that sales of Humira declined by 35.9% in the first quarter.
• Despite the drop in Humira sales, AbbVie exceeded earnings and revenue expectations for the quarter and raised its full-year guidance.
• Shares of AbbVie were down nearly 5% in late trading on Friday.

Humira, once the world’s biggest-selling drug, lost its exclusivity last year, leading to the entry of nine biosimilars into the U.S. market. During the first-quarter earnings call with analysts, AbbVie projected a further 32% decrease in Humira sales for the current quarter on top of the previous 35.9% decline.

Despite the challenges with Humira, AbbVie reported adjusted earnings of $2.31 per share and revenue growth of 0.7% to $12.31 billion, surpassing estimates. The company attributed its positive performance to the strong sales of Skyrizi, a treatment for psoriasis and psoriatic arthritis, which saw a 47.6% increase in sales to $2 billion. Additionally, Rinvoq, a drug for rheumatoid arthritis, experienced a sales surge of 59.3% to $1.09 billion.

As a result of its strong performance in other areas, AbbVie raised its full-year earnings per share (EPS) outlook to a range of $11.13 to $11.33 from the previous $10.97 to $11.17. Despite these positive developments, AbbVie shares were down by 4.6% at $159.55 before the closing bell and have entered negative territory for 2024.

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In conclusion, AbbVie’s Humira is facing tough competition from biosimilars, resulting in a significant decline in sales. However, the company’s overall performance remains strong, with other drugs like Skyrizi and Rinvoq driving revenue growth. Investors will be closely monitoring AbbVie’s strategies to navigate through the challenges posed by increasing competition in the arthritis drug market.