AbbVie posts Q3 beat as Skyrizi and Rinvoq offset Humira decline

What happened

AbbVie reported $17.4B in third-quarter revenue, about 10% higher than a year earlier, beating expectations. Skyrizi sales rose 23% and Rinvoq rose 24%, helping offset a 31% decline in Humira sales. Non-GAAP earnings per share more than doubled to $3.82, beating the consensus by $0.05.

Confirmed

Global impact / market context

Newer drugs are replacing falling Humira revenue, so total sales keep growing despite competition from cheaper copies of Humira, which means copycat biologics. Higher gross and operating margins mean more profit per sale and a larger share of revenue left after operating costs, supporting earnings growth.

Analyst inference

Investors compare drugmakers on how fast newer treatments replace older ones losing patent protection, which means exclusive selling rights. Skyrizi and Rinvoq growth of 23% and 24% offsets Humira's 31% drop. Margin gains and earnings per share above the consensus suggest cost control alongside revenue growth.

Analyst inference

What to watch

1. Watch whether Skyrizi and Rinvoq keep growing near their reported 23% and 24% yearly rates, since those two drugs now carry much of AbbVie's immunology sales growth. Confirmed
2. AbbVie should explain how it plans to replace Humira revenue as cheaper copies keep taking sales; watch whether Humira's 31% decline slows or deepens in coming quarters. Proposed
3. Improved gross and operating margins, at 85.1% and 48.7%, matter for earnings; watch whether they hold if newer drugs require more spending on marketing and research. Analyst inference

Evidence

• seekingalpha.com