AbbVie (NYSE: ABBV) posted strong first-quarter sales and earnings results that surpassed expectations, with promising performances from Skyrizi and Rinvoq, the drugs developed to replace Humira.
Despite Humira’s expected decline due to patent expiration, sales of these replacement drugs offset its dip, leading to flat year-over-year revenue of $12.3 billion and earnings of $2.31 per share.
However, AbbVie stock experienced a 4.6% decline, marking a 12% drop from its recent high.
While the company raised its full-year profit outlook, concerns lingered among investors about the trajectory of Humira’s sales decline.
Humira, one of the world’s top-selling drugs, generated $14.4 billion in revenue last year alone.
The gradual loss of exclusivity for Humira will undoubtedly impact AbbVie’s revenue, raising apprehensions about the pace of this decline.
Despite the market reaction, some analysts view AbbVie’s stock decline as an opportunity for investors.
The company’s robust pipeline, bolstered by promising replacement drugs, suggests resilience in the face of Humira’s patent expiration.
