AbbVie’s (ABBV) shares weakened on Friday, despite the American drugmaker’s third-quarter fiscal year 2025 earnings surpassing Wall Street’s expectations.
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At the end of the quarter, AbbVie earned $1.86 per share, exceeding analysts’ expectations of $1.77. Furthermore, its revenue rose 9% to $15.78 billion, easily beating Wall Street’s $15.59 billion estimate. However, earnings per share plunged 38% from $3 posted in the same period last year.
Humira Global Sales Plunge
Furthermore, global net sales from Humira plummeted more than 55% to $993 million. On the other hand, AbbVie’s revenues from worldwide sales of other drugs in its pipeline, such as Skyrizi and Rinvoq, rose during the quarter.
Humira is AbbVie’s best-known drug and has been one of the world’s best-selling medications for about two decades. The drug is used to treat autoimmune conditions in which the immune system mistakenly attacks healthy tissues.
AbbVie’s shares stumbled nearly 5% to $217.93 per share as of 3:23 p.m. EDT on Friday. The fall comes as the expiration of key Humira patents has continued to pose a threat to a significant portion of the company’s revenue over the past year.
AbbVie Raises Outlook
Following key patent expirations, Humira has been facing increased competition in the market. However, the Illinois-based pharmaceutical company, which recently signed a $2.1 billion deal to acquire Capstan Therapeutics, remains confident about its future.
For the full fiscal year 2025, AbbVie expects its gross profit, after adjustments for certain expenses, to equal 84% of its total sales revenue. The pharma company anticipates generating $60.9 billion by the end of the year, surpassing the $60.66 billion consensus on Wall Street.
Furthermore, the company anticipates adjusted earnings per share of $10.61 to $10.65 at the end of the fiscal year, excluding in-process research and development expenses. It raised its range from $10.38 to $10.58 per share.
AbbVie to Invest $10B in U.S.
Meanwhile, AbbVie also emphasized its readiness to expand its research and development and invest $10 billion in the U.S. over the next ten years. This is even as Robert Michael, AbbVie’s chairman and chief executive officer, noted that the company is “making great progress advancing [its] pipeline and investing in innovation to support AbbVie’s long-term growth.”
Is AbbVie a Good Stock to Buy Now?
On Wall Street, AbbVie’s shares currently have a Moderate Buy consensus rating, based on 15 Buys and 7 Holds from 22 analysts over the past three months.
Moreover, the average ABBV price target of $242.16 indicates an approximately 11% upside from the current level. However, analysts’ forecasts remain subject to changes.
