25th Jul 2014 13:19
SAINT HELIER (Alliance News) - Research-based biopharmaceutical company AbbVie Inc on Friday reported a 3% increase in profit for the second quarter from last year on higher revenues, reflecting strong sales of the company's blockbuster rheumatoid arthritis drug Humira.
Both revenue and adjusted earnings per share for the quarter beat analysts' estimates. Looking ahead, the company affirmed its recently-increased earnings outlook for fiscal 2014.
AbbVie was spun off from healthcare company Abbott Laboratories in 2013. The company's products include former Abbott brands such as Humira, in addition to Lupron, Synagis, Kaletra, Creon and Synthroid.
Last week, AbbVie and Shire PLC (SHP.L, SHPG), an Ireland-based manufacturer of drugs for rare diseases, said they have reached an agreement on the terms of a recommended combination of both companies. The deal values Shire at around 32 billion pounds or USD54.7 billion.
Abbvie's net earnings for the second quarter rose to USD1.10 billion or USD0.68 per share from USD1.07 billion or USD0.66 per share in the previous-year quarter.
Excluding intangible asset amortization and other specified items, adjusted earnings for the latest quarter were USD1.33 billion or USD0.82 per share, compared to USD1.32 billion or USD0.82 per share in the year-ago period.
On average, seven analysts polled by Thomson Reuters expected the company to report earnings of USD0.76 per share for the quarter. Analysts' estimates typically exclude special items.
Worldwide net sales for the quarter rose 5% to USD4.93 billion from USD4.69 billion in the year-ago period. Analysts' revenue consensus for the quarter was USD4.70 billion.
On an operational basis, sales increased 4.8%, excluding a 0.2% favorable impact from foreign exchange rate fluctuations. Excluding sales from the company's lipid franchise due to the loss of exclusivity, sales rose 12.3% on an operational basis in the quarter.
Sales for the quarter were led by the continued strength of the company's blockbuster drug Humira. Global sales of Humira for the quarter increased 26% from the year-ago period to USD3.29 billion, with US Humira sales rising 36%.
Meanwhile, Lupron's global sales for the quarter declined 6% to USD186 million, while Kaletra sales decreased 22% to USD216 million.
Total operating cost and expenses for the quarter rose 5% to USD3.41 billion from USD3.24 billion in the prior-year period.
Looking ahead to the third quarter, AbbVie forecast earnings of USD0.77 to USD0.79 on an adjusted basis, or USD0.68 to USD0.70 on a reported basis. The outlook excludes the potential impact of the transaction with Shire.
Street expects the company to earn USD0.77 per share for the quarter.
For fiscal 2014, AbbVie confirmed its recently-increased earnings outlook of USD3.06 to USD3.16 per share on an adjusted basis, or USD2.69 to USD2.79 on a reported basis.
The adjusted earnings guidance excludes USD0.37 per share of intangible asset amortization expense and other specified items primarily associated with certain separation-related costs and ongoing restructuring activities.
AbbVie's 2014 outlook excludes any potential revenue from the expected 2014 US launch of its hepatitis C or HCV therapy.
Analysts expect the company to earn USD3.14 per share for the year on revenues of USD19.40 billion.
ABBV closed Thursday's trading at USD54.08. In Friday's pre-market trades, the stock is up USD0.22 or 0.41% to USD54.30.
Copyright RTT News/dpa-AFX
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