AbbVie (ABBV.N) anticipates a further decline in sales volumes of its renowned arthritis medication Humira, following recent modifications by U.S. pharmacy benefit managers and as patients transition to alternative drugs.
On Friday, its shares experienced a nearly 5% drop in afternoon trading subsequent to the company’s projection of a 32% decrease in U.S. Humira sales for the second quarter.
The trajectory of Humira’s sales has been under close scrutiny by AbbVie’s investors ever since it relinquished exclusivity last year, coinciding with the introduction of nine similar versions, or biosimilars, in the United States.
In February, the company forecasted a 36% erosion in U.S. sales this year.
Chief Commercial Officer Jeffrey Stewart addressed concerns during an investor conference call, stating, “What we see is that not all of the Humira prescriptions are moving to a biosimilar.”
He pointed out that data indicated patients were also transitioning to other medications like AbbVie’s newer immunology treatments Skyrizi and Rinvoq.
Despite facing intensified price competition in the United States, AbbVie has thus far retained the majority share of the Humira market.
However, a substantial 36% decline in Humira sales during the quarter reflects the impact of this competition.
Health insurer Cigna (CI.N) announced plans to offer biosimilar versions of Humira at no out-of-pocket cost to eligible patients in the U.S. via its specialty pharmacy business, commencing in June.
Analyst Evan Seigerman from BMO Capital Markets noted the prevalent concern regarding the influence of Humira biosimilars, suggesting that Cigna’s initiative could further affect AbbVie’s Humira volume this year.
In the first quarter, AbbVie raked in $2.27 billion in Humira sales, closely aligning with estimates of $2.28 billion.
With the erosion in Humira sales, the company and its investors have shifted focus to the sales performance of Skyrizi and Rinvoq.
AbbVie revised its annual adjusted profit forecast on Friday to a range of $11.13 to $11.33 per share, surpassing previous estimates of $10.97 to $11.17.
Additionally, it exceeded first-quarter profit projections on the strength of Skyrizi and cancer drug Imbruvica sales.
Skyrizi sales reached $2.01 billion, surpassing estimates of $1.94 billion, while Rinvoq’s sales of $1.09 billion slightly exceeded expectations of $1.06 billion.
The company’s adjusted profit stood at $2.31 per share, exceeding estimates of $2.23 per share.