Will Humira & Other Drugs Drive AbbVie's (ABBV) Q2 Earnings?

AbbVie Inc’s (NYSE:ABBV) flagship product, Humira, has been witnessing strong sales despite the launch of competing drugs with new mechanisms of action. The drug is approved for several inflammatory indications and generates more than half of the company’s revenues. The drug is well protected from competition in the United States till mid-2023 by patents. However, loss of exclusivity in Europe has led to the launch of multiple biosimilar drugs by other pharma companies since October last year. These launches have significantly dented international sales in the past couple of quarters and are expected to do the same in the soon to-be-reported quarter.

U.S. Humira sales are expected to rise 7% in the soon-to-be-reported quarter. The company estimates international sales to be $1 billion. The drug had brought in sales of $1.67 billion in the year-ago quarter. The Zacks Consensus Estimate for second-quarter Humira sales is pegged at $4.82 billion.

In April, the company’s inflammation portfolio was strengthened with the approval of Skyrizi for treating moderate-to-severe plaque psoriasis in the United States and Europe. However, the impact of the drug on the top line is expected to be modest in the second quarter.

Its key oncology medicine, Imbruvica has shown impressive adoption in the approved indications, especially front-line chronic lymphocytic leukemia (“CLL”). The drug is approved for use as a monotherapy or in combination for front-line CLL. The drug is the only preferred regimen under the NCCN guidelines for this indication. The drug is marketed in partnership with J&J (NYSE:JNJ) , globally. J&J on its second-quarter earnings call reported impressive sales of the drug.

AbbVie expects Imbruvica to record sales of approximately $1.1 billion in the second quarter. The Zacks Consensus Estimate for the drug is pegged at $1.09 billion for the soon-to-be-reported quarter.

Sales of another leukemia drug, Venclexta, doubled year over year in the first quarter on the back of continued progress in the relapsed/refractory CLL indication. Label extension of the drug in acute myeloid leukemia also boosted sales. The growth trend is expected to continue in the soon-to-be-reported quarter. In May, the drug was approved in combination with Roche’s (OTC:RHHBY) Gazyva as first-line treatment for CLL patients, which may add to second-quarter revenues.

Other drugs, namely Duodopa and Creon, are also likely to continue their strong performance in the soon-to-be-reported quarter. The Zacks Consensus Estimate for Duodopa and Creon sales is pegged at $120 million and $245 million, respectively.

AbbVie’s new HCV drug, Mavyret recorded a decline in the first quarter due to decline in international market share and pricing. However, growth in the U.S. markets was strong. It remains to be seen how the drug performs in international markets this time around. (Read more: Is a Beat in Store for AbbVie This Earnings Season?)

AbbVie’s stock has depreciated 26.2% this year so far, compared with a decline of 1.2% recorded by the industry.

AbbVie currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Release

Bristol-Myers Squibb (NYSE:BMY) is set to report second-quarter results on Jul 25. The company has an Earnings ESP of +0.28% and a Zacks Rank #3. You can also uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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