AbbVie reported first quarter EPS of $0.71, surpassing the Zacks
Consensus Estimate and year-ago EPS of $0.68. Revenues increased
5.4% to $4.563 billion in the first quarter of 2014, surpassing the
Zacks Consensus Estimate of $4.328 billion. Results were boosted by
Humira's strong performance. We expect 2014 to remain challenging
as the company absorbs the impact of the loss of exclusivity on the
lipid franchise. However, this year should be catalyst rich for
AbbVie as it continues to invest in its pipeline. We expect
investor focus to remain on the company's all-oral, interferon-free
therapy with/without RBV which could be launched later this year.
We remain Neutral on the stock. While positive on the strong
late-stage pipeline, dividend yield and growth strategy, we remain
concerned about AbbVie's dependence on Humira.
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 on 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 daclizumab (relapsing
remitting multiple sclerosis partnered with Biogen).
AbbVie reported total sales of $18.79 billion in 2013, up
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