AbbVie reported third quarter 2014 earnings of $0.89 per share, up
8.5% from the year-ago earnings and surpassing the Zacks Consensus
Estimate of $0.78. Revenues increased 7.8% to $5.019 billion in the
third quarter of 2014, surpassing the Zacks Consensus Estimate of
$4.828 billion. Results were boosted by Humira's strong
performance. AbbVie, which terminated its merger deal with Shire,
guided above expectations in addition to reporting strong third
quarter results. The launch of the all-oral, interferon-free
therapy with/without RBV HCV combination therapy, potentially later
this year, would be a major boost for AbbVie. We expect investor
focus to remain on updates regarding the HCV combination. We
maintain a Neutral recommendation on AbbVie.
North Chicago, IL-based AbbVie came into existence on Jan 1,
2013, after Abbott Laboratories divested its pharmaceutical
division. AbbVie, a biopharmaceutical company, focuses on the
development and marketing of treatments for complex and serious
ailments. The company has a presence in the rheumatoid arthritis,
psoriasis, Crohn's disease, HIV, cystic fibrosis, testosterone,
thyroid disease, Parkinson's disease, ulcerative colitis, and
chronic kidney disease markets.
AbbVie's flagship product Humira is approved for several
indications like rheumatoid arthritis (moderate to severe),
moderately to severely active polyarticular juvenile idiopathic
arthritis, active psoriatic arthritis, active ankylosing
spondylitis, Crohn's disease (moderate to severe), ulcerative
colitis (moderate to severe), axial spondyloarthritis, pediatric
Crohn's disease and chronic plaque psoriasis (moderate to
Other drugs include AndroGel (low testosterone), Kaletra (HIV),
Niaspan (cholesterol management), Synthroid (hormone therapy for
thyroid disease), Creon (pancreatic enzyme replacement therapy for
conditions associated with cystic fibrosis and chronic
pancreatitis), Zemplar (secondary hyperparathyroidism), Duodopa
(advanced Parkinson's disease - currently approved in Europe and
other international markets) and TriCor/TriLipix (cholesterol
management) among others.
The company also has several candidates in different stages of
development across a wide range of therapeutic areas like
immunology, renal care, hepatitis C virus (HCV), women's health,
oncology, and neuroscience (including multiple sclerosis and
Alzheimer's disease). Key pipeline candidates include Elagolix
(phase III ongoing for the treatment of endometriosis data from the
first phase III study due in the second half of 2014 and phase IIb
for uterine fibroids being developed with Neurocrine Biosciences),
atrasentan (phase III ongoing for the treatment of chronic kidney
disease with the study scheduled to complete in 2017), ABT-199
(phase II ongoing in relapsed refractory chronic lymphocytic
leukemia patients with a 17p deletion partnered with Roche),
veliparib (phase III ongoing for triple negative breast cancer and
squamous non-small cell lung cancer (NSCLC)), elotuzumab (multiple
myeloma phase III studies ongoing with results due in early 2015
partnered with Bristol-Myers Squibb) and Zinbryta (daclizumab -
relapsing remitting multiple sclerosis partnered with Biogen). The
company has an agreement with Infinity Pharmaceuticals for the
development and commercialization of the latter's oncology
candidate duvelisib (IPI-145).
In Jul 2014, AbbVie announced its intention to acquire UK based
Shire for 31.83 billion or approximately $54.5 billion. The deal is
expected to close in the fourth quarter of 2014.
AbbVie reported total sales of $18.79 billion in 2013, up
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