AbbVie's Profit Falls

   By Allison Prang and Michael Tobin 
 

AbbVie Inc. (ABBV) reported a drop in second-quarter profit as its earnings were hit by a noncash charge from a psoriasis treatment that gained regulatory approval.

The biopharmaceutical company said it had $741 million in net income, down 63% from the comparable quarter a year prior. Earnings per share were 49 cents, down from $1.26.

On an adjusted basis, earnings rose to $2.26 a share from $2 a share the same time last year. Analysts polled by FactSet estimated adjusted earnings of $2.21 a share.

AbbVie reported $8.26 billion in revenue, down 0.3%. Analysts estimated $8.1 billion in revenue.

The company said its estimate for future milestones and royalty payments as a result of psoriasis treatment Skyrizi being approved by the U.S. Food and Drug Administration and European Commission grew by $2.3 billion.

AbbVie on Friday also revised its earnings targets for this year. The company lowered its profit outlook to between $5.69 and $5.79 a share from between $7.26 and $7.36 a share. But excluding one-time items and noncash charges, AbbVie said it expects to generate a profit between $8.82 and $8.92 a share, compared with its prior forecast of posting an adjusted profit between $8.73 and $8.83 a share.

The earnings report comes after Abbvie last month agreed to buy drugmaker Allergan PLC in a roughly $63 billion deal.

Write to Allison Prang at [e-mail]

(END) Dow Jones Newswires

July 26, 2019 08:44 ET (12:44 GMT)

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