Categories Analysis, Health Care, U.S. Markets News

European competition threatens AbbVie’s run of top-selling Humira

US pharma giant AbbVie Inc (ABBV) cut its overseas sales forecast on Friday for its offering Humira, on expected pricing cuts to compete in Europe.

Chief Executive Officer Richard Gonzalez, in a conference call, said, “we’ve seen discounting at ranges from as low as 10 percent to as high as around 80 percent.”

European competition threatens AbbVie's run of top-selling Humira
AbbVie scientist looks at experimental results through a microscope. (Courtesy: AbbVie)

According to AbbVie chief, Nordic countries saw the highest cut, especially in a time when the market thinks cheaper biosimilar competition will continue to be strong in the coming year in the continent as well.

Analysts expect the competition to adversely affect, and gain more momentum in 2020, with Mylan NV (MYL), Biogen Inc (BIIB) Amgen Inc (AMGN) and Novartis AG (NOVN) all starting the sales of biosimilar versions of Humira in Europe. this has caused quite a bit of unrest amongst investors, especially when the blockbuster prescription medicine brings in about two-thirds of AbbVie’s top line.

AbbVie third quarter 2018 Earnings Infographic

In the US, however, AbbVie is safe, since biosimilar competition is not expected until 2023. Outside the US, the medical giant sees a 26-27% drop in Humira sales next year, more than the earlier expected 18-20% slip.

In the last reported quarter, total Humira sales were 9% higher at $5.12 billion. Apart from it, leukemia drug Imbruvica also exhibited higher-than-expected sales in the period, hitting $972 million — much higher than the analyst consensus of $885.6 million. Maybe, these strong fundamentals could be the reason for the stock not reacting much to the CEO comments, as it remained flat at $79.77 following the outlook.


Get access to timely and accurate verbatim transcripts that are published within hours of the event

Most Popular

Infographic: Key highlights from Campbell Soup Company’s (CPB) Q1 2023 earnings results

Campbell Soup Company (NYSE: CPB) reported first quarter 2023 earnings results today. Net sales increased 15% year-over-year to $2.57 billion. Organic sales growth was 15%. Net earnings attributable to Campbell Soup

Cancer drug maker Felicitex prepares for IPO. Here’s all you need to know

Fewer companies filed for initial public offering this year, compared to 2021 when the market witnessed a record number of IPOs. With only a few weeks left for the year

Chipotle Mexican Grill (CMG): A few points to keep in mind if you have an eye on this restaurant chain

Shares of Chipotle Mexican Grill Inc. (NYSE: CMG) were down 3% on Tuesday. The stock has dropped 13% year-to-date but there is still a positive sentiment in general about its

Add Comment
Viewing Highlight