Oct. 30--Even as competitors rush to develop low-cost versions of Humira, AbbVie's powerhouse drug, the North Chicago company is doubling down on efforts to keep the medicine ringing up sales and raking in profits.
AbbVie reported Friday that worldwide sales of Humira grew 12 percent in the third quarter to $3.6 billion, a pace that is almost certain to earn it another year as the world's best-selling medicine.
The company predicted that Humira sales would continue to grow at a strong clip, hitting $18 billion by 2020. That's a 44 percent jump from last year's sales of $12.5 billion for Humira.
AbbVie posted overall net earnings of $1.2 billion, or 74 cents a share, for the quarter, up sharply from $506 million, or 31 cents a share, a year ago. Excluding special items, earnings per share were $1.13, up about 27 percent from a year ago, beating analysts' forecasts.
Revenue was $5.94 billion, up from $5.02 billion a year ago, driven largely by Humira.
AbbVie said it expects overall sales to hit $37 billion by 2020 but not on Humira alone. The company said it has built a "robust pipeline of medicines" with the potential to deliver nearly $30 billion in sales outside of Humira by 2024.
Those products include treatments for multiple sclerosis, leukemia and other cancers. AbbVie said it expects annual sales of Imbruvica, a blood cancer drug, to hit $5 billion within five years. AbbVie got the drug as part of its acquisition of Pharmacyclics earlier this year. Imbruvica rang up sales of $304 million in the third quarter.
In many ways, Humira remains the 800-pound gorilla in AbbVie's medicine chest. The drug accounted for nearly two-thirds of the company's revenue last year, as it has this year. The drug's third-quarter sales were nearly 10 times higher than the company's No. 2 product, a treatment for hepatitis C called Viekira Pak.
Shares of AbbVie soared 10 percent Friday, closing at $59.55 in heavy trading. The company spent nearly two hours on a conference call with analysts and reporters, laying out details of its pipeline and its plan for keeping Humira strong.
AbbVie's bullish outlook for Humira comes as some analysts have raised questions about the company's pipeline and whether Humira, on the market since 2002, is nearing the end of its shelf life.
Drawing a cloud over the situation is the fact that Humira's main legal protection in the United States -- called a "composition of matter patent," which protects the molecular discovery -- expires late next year.
The company points out that Humira remains protected by other patents for drug formulation, manufacturing and for the method of treatment for every use.
"We have more than 70 patents (on Humira), and we believe those patents will not allow a biosimilar to enter the marketplace any earlier than 2022," said Richard A. Gonzalez, chairman and chief executive.
But even with an upbeat outlook for the next five to seven years, some analysts are raising questions about what will happen afterward. Morningstar estimated earlier this year that AbbVie could lose nearly 40 percent of its revenue after 2020.
In the meantime, drugmakers are rushing to launch so-called biosimilars -- lower-cost versions -- of Humira. At least six biosimilars are in late-stage development, including products by Amgen and Novartis, Morningstar analyst Damien Conover said.
The latest was Chicago drugmaker Baxalta, which said earlier this month that it was moving into late-stage clinical trials with a biosimilar for treating chronic plaque psoriasis, which causes itchy, painful red patches on the skin, a market dominated by Humira.
Also this month, drugmaker Eli Lilly said its experimental drug proved superior to Humira for rheumatoid arthritis in a large study, raising additional questions about whether AbbVie could protect its blockbuster.
Humira is approved to treat nine conditions, including arthritis, psoriasis and colon inflammation. In September, the company said it won approval from the Food and Drug Administration to market Humira for the latest condition, inflamed lesions around the armpits, groin, buttocks and breasts. That could generate an additional $1 billion a year in sales, the company said.
Despite the growing competition, AbbVie said Humira remains a powerful part of its future. The company is studying whether Humira can also treat eye inflammation and fingernail psoriasis.
Humira reflects the huge growth of biologics, drugs derived from human genes. Even with more patients switching to biologics, the treatments account for less than 30 percent of arthritis and gastrointestinal treatments and less than 10 percent of psoriasis treatments, leaving room to grow, the company said.
"There's still an opportunity to drive significant growth in this market, and there will be for many, many years to come," Gonzalez said.
AbbVie issued diluted earnings-per-share guidance for 2016 of $4.90 to $5.10 on an adjusted basis. It also declared an increase in the company's quarterly cash dividend from 51 cents to 57 cents a share.
jrussell@tribpub.com
