uploads/2019/04/Graph-2-16-1.png

AbbVie Reiterates Revenue Guidance for Fiscal 2019

By

Updated

Revenue guidance

In its first-quarter earnings conference call, AbbVie (ABBV) reiterated its YoY operational revenue growth guidance for fiscal 2019 of 1%. The company, however, expects unfavorable foreign exchange movements to have a negative revenue impact of 1% in fiscal 2019.

In the first quarter, AbbVie earned adjusted net revenues of $5.27 billion from the US market, a YoY rise of 10.0%. International markets contributed the remaining $2.56 billion revenues, a YoY decline of 14.2% on an operational basis and 18.6% on a reported basis.

Sign up for Bagels & Stox, our witty take on the top market and investment news, straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.

Analysts expect AbbVie’s revenues to rise YoY by 0.19% to $32.79 billion in fiscal 2019, 5.74% to $34.69 billion in fiscal 2020, and 6.52% to $36.94 billion in fiscal 2021.

Analysts also expect AbbVie’s revenues to change YoY by -2.00% to $8.09 billion in the second quarter, 0.12% to $8.25 billion in the third quarter, and 4.01% to $8.64 billion in the fourth quarter of fiscal 2019.

Article continues below advertisement

Product performance in the first quarter

In the first quarter, Humira reported revenues of $4.45 billion, a YoY decline of 3.8% on an operational basis and 5.6% on a reported basis. The drug reported sales of $3.21 billion from the US market, a YoY rise of 7.1%. According to the first-quarter earnings conference call, this performance was driven by solid demand reflected by low wholesaler inventory levels. Humira reported sales of $1.23 billion from international markets, a YoY decline of 23% on an operational basis and of 27.9% on a reported basis. According to the first-quarter earnings conference call, this performance was a result of direct biosimilar competition to Humira in Europe and certain other international markets.

In the first quarter, AbbVie reported HCV (hepatitis C) sales of $815 million, a YoY decline of 9.1% on an operational basis and 11.3% on a reported basis. However, the company’s HCV product sales in the US market were $403 million, a YoY rise of 17.3%. International markets contributed $412 million of sales, a YoY decline of 24.9% on an operational basis and 28.4% on a reported basis.

According to the first-quarter earnings conference call, although AbbVie has increased its HCV market share in the US as well as in certain international markets, the company’s revenues have been affected due to patient de-warehousing in select markets.

Advertisement

More From Market Realist