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AbbVie’s Stock Soars as New Immunology Drugs Compensate for Humira’s Revenue Dip

AbbVie’s Newer Immunology Drugs Offset Humira’s Decline, Leading to Stock Surge

AbbVie Inc. experienced a notable increase in its stock price, jumping 4% on Friday morning after the pharmaceutical giant reported fourth-quarter earnings that surpassed market expectations. The company’s strong performance can largely be attributed to its newer immunology drugs, which are effectively mitigating the revenue drop from its blockbuster medication, Humira.

Positive Earnings Report and Growth Outlook

AbbVie’s CEO, Rob Michael, emphasized the company’s optimistic outlook as it enters 2025. “We are entering 2025 with significant momentum and expect net revenues to exceed their previous peak in just the second full year following the U.S. Humira loss of exclusivity,” he stated in prepared remarks.

Despite an unexpected loss per share of $0.02, attributed to an impairment charge on a drug designed for schizophrenia and Alzheimer’s disease-related psychosis, AbbVie reported earnings of $2.16 per share when adjusted for one-off items, surpassing the FactSet consensus estimate of $2.12. This marked a decline from the $0.46 per share earnings recorded a year prior.

Revenue Growth Outpaces Expectations

Revenue for the quarter rose to $15.102 billion, increasing from $14.301 billion in the previous year and exceeding the FactSet consensus of $14.832 billion. A key factor in this revenue increase was the performance of AbbVie’s newer immunology drugs, Skyrizi and Rinvoq, which are taking center stage as Humira’s competitive market begins to shrink.

Struggles with Humira Amid Competitive Pressures

Humira, AbbVie’s flagship immunology drug, saw revenue decline significantly, falling by 49.1% to $1.682 billion during the quarter, which was below the FactSet consensus estimate of $1.917 billion. In the U.S., Humira revenue plummeted 54.5% to $1.246 billion, whereas internationally, it dropped 22.7% to $436 million.

Immunology Drugs Deliver Robust Sales

Conversely, AbbVie’s newer treatments are thriving. Global Skyrizi revenue soared 57.7% to $3.778 billion, surpassing expectations of $3.581 billion. Similarly, Rinvoq experienced a 42.6% sales increase, reaching $1.834 billion, which also beat the FactSet consensus of $1.694 billion. Overall, the global immunology sector posted a 4.9% revenue gain, bringing in $7.294 billion.

Diverse Growth Streams and Future Projections

In other areas, AbbVie reported additional growth in its oncology division with a 12% increase, generating $1.691 billion. The neuroscience portfolio also performed well, with a 19.8% increase that brought in $2.509 billion, although its aesthetics segment faced a decline of 5.2%, totaling $1.298 billion. Notably, global Botox revenue fell by 4.2% to $687 million.

AbbVie has adjusted its expectations for adjusted earnings per share (EPS) in 2025 to between $12.12 and $12.32, aligning well with the $12.15 predicted by FactSet. The company remains optimistic, projecting high single-digit compound annual revenue growth through 2029 and raised its outlook for its psoriasis treatment Skyrizi and arthritis drug Rinvoq to more than $31 billion by 2027.

Key Developments and Trials

In addition to their financial results, AbbVie highlighted several key developments during the quarter, including a successful late-stage trial for a Parkinson’s disease treatment. The company also announced its acquisition of Nimble Therapeutics, which possesses an investigational psoriasis treatment that could further bolster its portfolio.

Stock Performance and Market Context

Over the past 12 months, AbbVie’s stock has increased by 6.8%, while the S&P 500 has seen a larger gain of 25%. As AbbVie navigates the challenges presented by Humira’s declining sales due to biosimilar competition, the