AbbVie Inc. Q1 FY2025 earnings call

Management Statement and Operational Highlights

• AbbVie had an excellent first quarter with adjusted earnings per share $2.46, net revenues >$13.3 billion, exceeding expectations. Ex-Humira platform grew >21%.
• Raised full-year adjusted earnings per share guidance to $12.09-$12.29, raised full-year sales guidance for Skyrizi and Rinvoq, lowered US Humira sales guidance.
• Pipeline progress: Rinvoq received European approval for giant cell arteritis and expects FDA approval; Teliso-V anticipated accelerated approval; Tavapadon in Parkinson's disease development; Gubra amylin analog for obesity shows positive interim results.
• Committed to over $10 billion investment in US manufacturing over the next decade to support volume growth and expansion into new areas like obesity.

Segment Performance

• Immunology: Total revenues >$6.2 billion, exceeding expectations. Skyrizi and Rinvoq combined $5.1 billion in sales this quarter, with growth >65%. In IBD, Skyrizi and Rinvoq capture significant share. In dermatology and rheumatology, Skyrizi gains share in psoriatic disease and Rinvoq shows momentum in various indications including atopic dermatitis.
• Humira: Global sales $1.1 billion, down 49.5% operationally, primarily due to biosimilar competition and molecule compression in the US. Full-year sales guidance for US Humira is lowered.
• Oncology: Total revenues $1.6 billion, exceeding expectations. Imbruvica global sales $738 million (-11.9%), Venclexta global revenues $665 million (+12.3%). Emerging commercial portfolio includes Elahere ($179 million) and upcoming Teliso-V for non-small cell lung cancer.
• Aesthetics: Global sales $1.1 billion, down 10.2% operationally. BOTOX Cosmetic $556 million (-10.7%), Juvederm $231 million (-20%). Market conditions challenging, but BoNT/E submitted for US review with potential commercialization next year.
• Neuroscience: Revenues ~$2.3 billion, up 17% operationally. VRAYLAR $765 million (+10.3%), BOTOX Therapeutic $866 million (+17%), UBRELVY $240 million (+18%), QLIPTA $193 million (+48.3%). Tavapadon in Parkinson's disease development with regulatory submission expected later in 2025 and commercialization in 2026.

Guidance

• Raised full-year adjusted earnings per share guidance to $12.09-$12.29, reflecting strong performance across segments.
• Expect total net revenues ~$59.7 billion, an increase of $700 million, with an estimated 0.6% unfavorable impact from foreign exchange.
• Key product assumptions: Skyrizi global revenues $16.5 billion (+$600 million), Rinvoq global sales $8.2 billion (+$300 million), US Humira $3.5 billion (-$500 million), BOTOX Therapeutic $3.6 billion (+$100 million), etc.

Risks

• Potential sectoral tariffs impacting manufacturing and pricing.
• Faster biosimilar competition eroding Humira share in the US.
• Macro economic headwinds continuing to impact aesthetics market conditions.

Question and Answer

Q: Just two for me. Maybe first on Skyrizi and Rinvoq, obviously some big step up in the guidance here. Can you just elaborate a little bit more on which of the indications are most attributable to the upside we're seeing right now?

A: Scott Reents: We raised Skyrizi by $600 million to $16.5 billion, split between $200 million in psoriatic and $400 million in IBD indications. Rinvoq was raised $300 million, attributable to $100 million for rheumatology, $100 million for derm, and $100 million for IBD.

Q: You alluded to some of the mitigation strategies you're taking with respect to tariffs potentially. Could you just elaborate a little bit more there in terms of what that means for maybe inventory and then any contemplation on any changes to IP domiciling?

A: Rob Michael: We have a broad US manufacturing footprint. In the near term, could take inventory management actions or secure alternate API sources. IP has been considered, but AbbVie's profile doesn't suggest outsized impact from tariffs due to strong US presence.