AbbVie's Revenue Growth Misses Expectations

By Chelsey Dulaney 

AbbVie Inc. on Friday reported weaker-than-expected revenue growth in its latest quarter, though adjusted profit came in above expectations.

Shares fell 2.2% in premarket trading to $69 a share.

Investors have grown increasingly worried that AbbVie won't be able to sustain strong sales growth for its top-selling anti-inflammatory medicine Humira. --which accounts for more than 60% of the North Chicago, Ill., company's revenue--after certain patents for the drug begin to expire in late 2016.

Several rivals are developing copycat versions of Humira, including Amgen Inc., which expects to begin selling it in 2017. The U.S. Food and Drug Administration has also approved a copy of a biotechnology drug using new abbreviated criteria, kicking off what is expected to be a wave of lower-cost "biosimilars" that could erode sales of expensive brands such as Humira.

In the latest quarter, Humira sales grew 7.6% to $3.54 billion. Excluding currency fluctuations, sales would have been up 16.4%. The drug treats conditions ranging from rheumatoid arthritis to Crohn's disease.

AbbVie has said it expects to defend Humira by wielding "hundreds of patents" globally that cover manufacturing processes and methods of use.

AbbVie also has taken steps to reduce its dependence on Humira. It recently began selling a new hepatitis C regimen, Viekira Pak, which generated $385 million in sales in the latest quarter.

In May, the company closed on its purchase of Pharmacyclics Inc., a deal that brought AbbVie rights to the blood-cancer drug Imbruvica. Sales of that drug were $234 million in the quarter.

In all, AbbVie reported a profit of $1.37 billion, or 83 cents a share, up from $1.1 billion, or 68 cents a share, a year earlier. Excluding certain items, per-share earnings rose to $1.08 from 82 cents a share a year earlier.

Revenue grew 11% to $5.48 billion.

Analysts had expected earnings of $1.06 a share on revenue of $5.62 billon.

AbbVie backed its full-year outlook for $4.10 to $4.30 a share in earnings.

Write to Chelsey Dulaney at [e-mail]

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