AbbVie shares slipped on Friday after “temporary economic headwinds” slowed its cosmetic drugs, including Botox, in the third quarter.
Generally, AbbVieThe medical aesthetics division (ABBV) generated $1.3 billion in sales. On a strictly reported basis, sales were up 4%. The largest segment in the US saw sales fall more than 7%. Offsetting this, international revenue was up nearly 26%.
Chief executive Richard Gonzalez noted that the immunology drugs Skyrizi and Rinvoq helped mitigate the poor cosmetic performance. The duo will be important going forward when AbbVie’s biggest drug, an immunology treatment called Humira, loses patent protection.
“We continue to see strong momentum from our key immunology assets, Skyrizi and Rinvoq, and this performance, combined with the strength of other growth drivers within our diverse portfolio, has mitigated the impact of temporary economic headwinds in our beauty products to deliver another quarter of strong results,” he said in a report.
But in trading today, AbbVie shares fell 3.8% to 147.61.
The third quarter was generally a mixed bag for AbbVie. Adjusted earnings beat views at $3.66 per share, but total sales came in at $14.81 million. Sales were up about 3% and revenue was up more than 29%.
But Humira revenue missed expectations of $5.56 billion. While sales rose 2.5 percent, they fell short of expectations of $5.59 billion, Piper Sandler analyst Christopher Raymond said in a note. Meanwhile, Skyrizi beat forecasts by nearly $1.4 billion, but lost $695 million in Rinvoq sales.
In the aesthetics division, Botox sales rose nearly 17% to $637 million, while Juvederm revenue sank nearly 1% to $352 million. Botox sales fell short of the $641 million forecast, but Juvederm was in line, Raymond said.
The two cancer drugs, Imbruvica and Venclexta, lagged behind by $1.14 billion and $515 million respectively. Imbruvica sales fell more than 17%, although Venclexta gained single digits. Meanwhile, the neuroscience franchise failed “badly,” Raymond said. He noted the shortcomings of the Parkinson’s drug Duodopa and the migraine treatment Ubrelvy. Therapeutic botox sales matched forecasts at $699 million.
For the year, AbbVie cut its earnings outlook to $13.84-$13.88 per share, but kept the midpoint the same. The company did not provide sales guidance. AbbVie equities analysts forecast adjusted earnings of $13.85 per share on sales of $58.92 million.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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