Q1 2024 Summary
Published Jan 10, 2025, 5:10 PM UTC- Strong performance in the neuroscience franchise, with products like VRAYLAR, Qulipta, and UBRELVY gaining market share and leading their markets, driving significant growth.
- Confidence in the successful closure of the Cerevel acquisition by mid-year, expected to strengthen AbbVie's neuroscience portfolio, with no FTC concerns.
- ELAHERE received full FDA approval, and AbbVie expects it to drive strong growth with significant market potential in ovarian cancer treatments.
- AbbVie expects economic headwinds in the China aesthetics market to persist over the near term, with the market remaining flat overall for 2024, which could impact the growth of their aesthetics business.
- Potential structural changes in the Pharmacy Benefit Manager (PBM) industry due to political pressure and calls for transparency reforms may affect AbbVie's pricing and market access strategies, possibly impacting future revenues.
- Regulatory scrutiny from the FTC regarding the pending acquisition of Cerevel, particularly concerns about overlapping indications and market competition in schizophrenia treatments, could delay or impede the acquisition, affecting AbbVie's plans to augment its neuroscience portfolio.
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HUMIRA Erosion Impact
Q: Can you update us on HUMIRA volume vs price erosion?
A: HUMIRA's performance is tracking in line with our expectations, with price erosion representing the vast majority of the decline ,. We anticipated volume erosion due to contracts like CVS's, but we do not see widespread exclusions for the rest of the year ,. Notably, over 20% of HUMIRA prescriptions are moving to other mechanisms, including SKYRIZI and RINVOQ ,. -
2025 Growth Outlook
Q: How will AbbVie manage growth in 2025 despite headwinds?
A: Despite headwinds like the IRA Part D redesign and further HUMIRA erosion, we expect to deliver robust revenue growth in 2025. Growth drivers include SKYRIZI and RINVOQ, which are growing by more than $4 billion per year, and our neuroscience franchise, adding over $1 billion this year. The IRA impact is significant in 2025 but not in subsequent years. -
Contracting Strategies
Q: How are you approaching HUMIRA contracting for 2025?
A: We aim to maintain patient access and minimize disruption by negotiating for parity contracts and seeking multi-year agreements with payers. We have controls in place to ensure contract stability, though details are confidential. We do not anticipate significant formulary exclusions for HUMIRA in 2025 ,. -
SKYRIZI and RINVOQ Opportunities
Q: What's the outlook for SKYRIZI and RINVOQ in IBD?
A: SKYRIZI is showing significant acceleration in frontline Crohn's disease, and we expect similar success in ulcerative colitis, a multi-billion dollar opportunity. Our performance in naive populations is exceptional. We're capturing almost 40% of in-play share with SKYRIZI first and RINVOQ second. -
Neurology Franchise Growth
Q: Can you discuss the strong neurology performance?
A: Our neuroscience franchise is thriving, with VRAYLAR and our migraine portfolio showing strong growth ,. Qulipta is now the leading preventative agent, and UBRELVY maintains a meaningful lead over competitors. VRAYLAR continues to gain market share due to its efficacy in bipolar and major depression. -
Aesthetics Business Challenges
Q: What's impacting the aesthetics business, especially in China?
A: We expect economic headwinds in China to persist near-term, with the aesthetics market flat overall in 2024. We anticipate a market recovery beginning in the second half of 2024. In Q1, shifted promotional efforts impacted inventory levels, resulting in over $50 million lower inventory, which we expect to recover in Q2. -
Biosimilar HUMIRA Uptake
Q: Will cheaper HUMIRA biosimilars lead to increased step-edits?
A: We're confident in maintaining favorable access for SKYRIZI and RINVOQ in 2025 and beyond. Physicians recognize the superior efficacy of our products, which is reflected in their prescribing patterns. The availability of biosimilars hasn't significantly altered our outlook. -
FTC Review of Cerevel Acquisition
Q: Any concerns about FTC approval of the Cerevel deal?
A: We are working closely with the FTC and expect to close the transaction by mid-year. There is no overlap in mechanisms of action between our products and Cerevel's, and VRAYLAR's share in schizophrenia is very low. -
Emraclidine Safety Concerns
Q: Has the FDA contacted you about emraclidine safety issues?
A: We conducted thorough diligence and have not observed any safety concerns consistent with those described in competitor reports. No health authority has reached out to us regarding this matter. -
Political Impact on PBMs
Q: Will political scrutiny change PBM practices on biosimilars?
A: We do not anticipate a wholesale restructuring of the PBM industry. Transparency reforms might occur, but we expect the current contracting dynamics to remain largely unchanged in the near term. -
ELAHERE Sales Performance
Q: Can you provide ELAHERE's full quarter sales?
A: Prior to the close in mid-February, ELAHERE's full quarter sales were approximately $113 million. The transition from accelerated to full approval has been a significant catalyst for growth. -
Gross-to-Net Trends
Q: How did gross-to-nets impact Q1, and what's the outlook?
A: We have strong controls over our gross-to-net adjustments, including vouchers and co-pays, and we're seeing stability. We expect these trends to continue throughout the year. -
SKYRIZI Royalty Payments
Q: What was the SKYRIZI royalty payment this quarter?
A: The cash payment for SKYRIZI royalties in the first quarter was $400 million. -
Level Up Study Impact
Q: How will Level Up data affect RINVOQ in atopic dermatitis?
A: The Level Up study strengthens our position by demonstrating superior efficacy, which should help both market share gains and market expansion. Given the low bio-penetration in this area, we expect significant growth opportunities.