A Look at AbbVie’s Neuroscience Portfolio



Duodopa revenue trends

In 2016, AbbVie’s (ABBV) Duodopa, a combination drug for the treatment of advanced Parkinson’s disease, generated revenue of ~$293 million. The drug witnessed a revenue rise of ~28% year-over-year (or YoY) in 2016. In 1Q17, the drug reported revenue of ~$80 million, a rise of 17% YoY.

Duodopa is a levodopa and carbidopa combination drug that’s marketed in the United States with the trade name Duopa. In January 2015, Duopa received FDA approval for commercialization in the United States. The increasing acceptance of the product in the US market could boost its revenue growth in 2017. However, it faces stiff competition from Impax Laboratories’ (IPXL) Rytary.

The above graph reflects Duodopa’s revenue trend from 2012 to 2016.

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Sevoflurane and Zinbryta

Sevoflurane is a general anesthetic sold by AbbVie with the trademarks Sevorane and Ultane. In 2016, Sevoflurane reported revenue of ~$428 million, a fall of 6% YoY. In 1Q17, Sevoflurane generated revenue of ~$107 million, which reflected a ~4% fall YoY. Rising competition due to the availability of generic alternatives has been a key contributor to Sevoflurane’s sales fall.

In May 2016, the FDA approved Zinbryta (daclizumab) for the treatment of relapsing forms of multiple sclerosis (or MS). Zinbryta is a long-acting monoclonal antibody that specifically blocks the interleukin-2 receptor. The drug is a prescription medicine and is administered once per month. It’s a subcutaneous injection and can be self-administered. The drug is advised for the treatment of MS patients who have undergone at least two prior therapies that couldn’t elicit an adequate response.

AbbVie’s peers in the neurology market include Pfizer (PFE), Teva Pharmaceuticals (TEVA), Novartis, and Johnson & Johnson. AbbVie is carrying out extensive clinical trials for the commercialization of many of its products in the neurology space. AbbVie’s pipeline product ABBV-8E12 is undergoing a Phase 2 trial for the evaluation of its efficacy in treating Alzheimer’s disease and progressive supranuclear palsy.

Another of AbbVie’s products, ABT-RTA 408, is also in a Phase 2 clinical trial for the treatments of mitochondrial myopathy and Friedreich’s Ataxia. AbbVie’s strong neuroscience pipeline may secure the company’s future revenue growth. The rising sales of AbbVie’s neurology drugs could drive the share price of the Vanguard Health Care ETF (VHT). AbbVie makes up ~3.2% of VHT’s total portfolio holdings.


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