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AbbVie's revenue miss clouds strong Humira US sales

Last updated: 06:17 28 Jan 2017 AEDT, First published: 01:17 28 Jan 2017 AEDT

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Is AbbVie's test tube half full or half empty?

Abbvie Inc (NYSE:ABBV) shares were lower on Friday after the pharma reported quarterly adjusted revenue that missed analysts' estimates as weaker-than-expected sales of its hepatitis C treatment and cancer therapy overshadowed strong US demand for its flagship drug, Humira.

The company's shares were down 2.4% at $59.80 on Friday, erasing more than $2.5bn of its market value.

AbbVie has sharpened its focus on oncology to reduce its reliance on Humira. The company bought Pharmacyclics and its half-ownership of the leukemia drug, Imbruvica, for $21bn in 2015.

Sales of the drug, which is also sold by Johnson & Johnson (NYSE:JNJ), fell short of fourth-quarter expectations, partly due to an inventory issue.

However, AbbVie said it expects 2017 Imbruvica sales of $2.4bn, up from $1.83bn last year.

Sales of Abbvie's hepatitis C treatment, Vikiera Pak, also missed estimates, hurt by competition from Gilead Sciences Inc (NASDAQ:GILD) and Merck & Co Inc (NYSE:MRK).

The company forecast full-year Vikiera sales of $1bn, below the $1.52bn the drug yielded last year.

The sales expectations come when investors are already jittery about looming biosimilar competition for Humira, the world's top-selling drug as well as uncertainties around the sector if US President Donald Trump carries out his threat to stamp on high-rise drug prices.

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