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Mavyret May Prove a Strong Growth Driver for AbbVie Going Forward

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HCV growth prospects

In 3Q17, AbbVie (ABBV) reported global sales of nearly $276 million for its hepatitis C (or HCV) portfolio, which reflected a 27.7% operational fall and a 26.8% reported fall year-over-year (or YoY).

The company reported HCV sales of close to $60 million from the US market in 3Q17, a YoY fall of ~19.5%. AbbVie also reported HCV sales of close to $216 million from international markets in 3Q17, a YoY fall of 29.8% on an operational basis and a fall of 28.7% on a reported basis.

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AbbVie reported global HCV sales of close to $764 million in the first nine months of 2017, a YoY fall of 36.7% on an operational basis and a fall of 36.9% on a reported basis. The company reported HCV sales of $124 million in the US market in the first nine months of 2017, a YoY fall of nearly 56.6%.

AbbVie also reported $640 million worth HCV sales from international markets in the first nine months of 2017, a YoY fall of 30.5% on an operational basis and a fall of 30.7% on a reported basis.

AbbVie accounts for ~1.2% of the iShares Russell 1000 Growth ETF’s (IWF) total portfolio holdings.

Mavyret growth trends

On August 3, 2017, the FDA approved Mavyret, a combination of glecaprevir and pibrentasvir, for the treatment of HCV patients across genotypes 1–6 without liver cirrhosis or with mild cirrhosis. Mavyret was also approved for chronic HCV genotypes 1–6 who are suffering from moderate to severe kidney disease and are on dialysis treatment.

The FDA also approved Mavyret for HCV patients who have been treated previously with an NS5A inhibitor or an NS3/4A protease inhibitor-containing regimen. Apart from the United States, Mavyret also secured regulatory approvals in the European Union and Japan on July 28, 2017, and September 27, 2017, respectively. The drug managed to report revenue of close to $100 million in 3Q17.

Mavyret is expected to enable AbbVie to compete effectively with HCV players such as Gilead Sciences (GILD), Bristol-Myers Squibb (BMY), and Roche Holdings (RHHBY).

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