) recently confirmed its sales figures for 2012 and provided
guidance for 2013 as an independent company. AbbVie came into
existence earlier this year following its separation from
AbbVie said that excluding the negative impact of currency
fluctuation (3%), pharmaceutical segment revenues grew more than
8% in the fourth quarter of 2012 despite the genericization of
TriCor. Results were driven by Humira, AndroGel and
The company also provided first-time guidance for 2013. AbbVie
expects to earn $3.03 - $3.13 per share in 2013 on total revenues
of more than $18 billion. Currency movement is expected to
negatively impact revenues by about 1%. Humira, which posted
sales of $9.3 billion in 2012, up 16.7%, is expected to deliver
low double-digit growth in 2013.
AbbVie expects to spend 14.5% of sales on R&D. SG&A
spend is expected to be about 26% of sales.
First quarter 2013 earnings are expected in the range of 64 -
66 cents. Sales are slated to grow in low single digits
despite the negative impact of generic competition for the lipid
We believe AbbVie is poised for strong growth. Humira should
continue driving sales thanks to factors like additional
indications, increasing penetration, geographic expansion, and
share gains. New indications could boost peak sales potential for
Humira by another $1.5 billion.
The pipeline also represents significant potential and AbbVie
is targeting 15 regulatory approvals between 2013 and 2017. The
company's late-stage pipeline includes 11 compounds or
indications in phase III development targeting therapeutic areas
like hepatitis C, immunology, multiple sclerosis, endometriosis
and Parkinson's disease.
2013 and 2014 represent a transition period for the company
which is facing generic competition for its lipid franchise -
TriCor, TriLipix and Niaspan. The company expects 2013 sales from
this franchise to decline by roughly $1.2 billion to less than $1
AbbVie currently carries a Zacks Rank #3 (Hold). While we are
positive on the company's strong late-stage pipeline, dividend
yield and growth strategy, we remain concerned about AbbVie's
dependence on Humira. We believe the company will continue
pursuing in-licensing deals and collaborations to boost its
Large-cap companies that currently look more attractive
). Both companies carry a Zacks Rank #2 (Buy).
ABBVIE INC (ABBV): Free Stock Analysis Report
ABBOTT LABS (ABT): Free Stock Analysis Report
NOVO-NORDISK AS (NVO): Free Stock Analysis
SANOFI-AVENTIS (SNY): Free Stock Analysis
To read this article on Zacks.com click here.