On Friday, Deutsche Bank (ETR:DBKGn) reiterated a Hold rating on shares of AbbVie (NYSE:ABBV) with a steady price target of $175.00. The firm's analysis was based on recent IMS/IQVIA data, which showed that branded Humira retained a 69.6% share of Adalimumab prescriptions, a slight decrease of 0.8% week over week. Moreover, the co-branded Humira (Cordavis x ABBV) saw a marginal increase, capturing 10.8% of the market, up by 0.2% week over week.
The combined market share of AbbVie's branded and co-branded Humira stands at 80.4%, a decrease of 0.6% week over week. Cordavis' Hyrimoz biosimilar has increased its share to 12.7%, marking an increase of 0.4% week over week.
Year-to-date, AbbVie's branded and co-branded Humira prescription volume has declined by 20%, with a year-over-year decrease of 30%. If this trend continues, the volume erosion for the year might be approximately 15% year-to-date and 23% year-over-year.
For the first half of 2024, branded Humira's total prescriptions were down by 21% year-over-year, and for July and August of 2024, the decline was more pronounced at 38% year-over-year. This downward trend has affected the overall Adalimumab class, which saw a 9% year-over-year decrease in total prescriptions for the first half of 2024 and a 14% decrease for July and August.
Abbvie has forecasted that its U.S. Humira sales for the full year of 2024 will drop by 36% year-over-year, which equates to roughly $7.8 billion, primarily due to pricing pressures. The company anticipates maintaining parity access across a significant majority of covered lives in 2024 through existing contracts.
As the second half of 2024 unfolds, AbbVie is expected to face less pricing pressure compared to the first half due to lapping rebates. However, the firm suggests that volume erosion will be a more significant factor impacting sales in the latter part of the year.
In other recent news, AbbVie's branded and co-branded Humira prescriptions have seen a decline of 22% year-to-date and 29% year-over-year. Meanwhile, Piper Sandler and Goldman Sachs (NYSE:GS) raised AbbVie's price target to $209 and $200 respectively, maintaining a positive outlook for the company.
Abbvie's new drug, TEPKINLY, received conditional approval from the European Commission for treating adult patients with relapsed or refractory follicular lymphoma. The company also completed its acquisition of Cerevel Therapeutics, expanding its neuroscience portfolio and reaffirming its full-year adjusted diluted earnings per share guidance for 2024.
Allergan (NYSE:AGN) Aesthetics, a subsidiary of AbbVie, released a new skincare product, SkinMedica® HA5® Hydra Collagen Replenish + Restore Hydrator. Moreover, the Biden administration initiated price negotiations with Medicare for ten high-cost prescription drugs, including AbbVie's Imbruvica, with the new prices set to take effect in 2026. These are the recent developments concerning AbbVie.
InvestingPro Insights
In light of recent market developments and data analysis for AbbVie (NYSE:ABBV), InvestingPro provides valuable insights that may impact investor perspectives. With a robust market capitalization of $343.31 billion and a high Price / Book ratio of 50.63 as of the last twelve months leading up to Q2 2024, AbbVie stands as a substantial player in the biotechnology industry. Despite a slight revenue decline of 1.83% over the same period, the company maintains a strong gross profit margin of nearly 69.66%, reflecting its ability to retain profitability in challenging market conditions.
InvestingPro Tips highlight that AbbVie has consistently raised its dividend for 11 consecutive years, signaling confidence in its financial stability and commitment to shareholder returns. Furthermore, with 14 analysts having revised their earnings estimates upwards for the upcoming period, there is a positive sentiment regarding the company's earnings potential. For investors seeking additional insights, there are 13 more InvestingPro Tips available, which can be explored for a deeper understanding of AbbVie's financial health and market position.
As the pharmaceutical giant navigates through the competitive landscape marked by biosimilar pressures, these financial metrics and expert analyses underscore the importance of monitoring both the company's market performance and its strategic responses. For those interested in a more comprehensive analysis, additional InvestingPro Tips can be found at https://www.investing.com/pro/ABBV.
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