Botox maker AbbVie raises profit forecast after strong sales of immunology drugs
AbbVie's forecast raise comes on the back of the European Union's framework trade deal with the United States, under which all EU-produced pharmaceuticals entering the US will be subject to a 15% tariff.
AbbVie has a significant presence in Ireland, in Dublin, Sligo, in Carrigtwohill in Co Cork, and in Westport in Mayo, where it makes its wrinkle treatment Botox.
Shares of the drugmaker jumped nearly 6%. The company is pushing Skyrizi and Rinvoq to counter the drop in sales of arthritis treatment Humira, as the once-bestselling drug faces competition from several cheaper biosimilars that began hitting the US market in 2023.
"We're entering the second half of the year with substantial momentum," said CEO Robert Michael.
Skyrizi recorded quarterly sales of $4.42bn (€3.86bn), beating analysts' average estimate of $4bn, while Rinvoq sales of $2.03bn surpassed estimates of $1.97 billion, according to data compiled by LSEG.
The Chicago drugmaker has spent more than $20bn (€17.4bn) on acquisitions since 2023 as Humira lost patent protection. On Wednesday, Bloomberg News reported that AbbVie is in talks to acquire privately held psychiatric disorder drug developer Gilgamesh Pharmaceuticals in a deal worth about $1bn (€870m).
Global sales of Humira, once the world's best-selling drug, came in at $1.18bn (€1.03bn) in the second quarter, missing estimates of $1.45bn (€1.27bn).
The company now expects adjusted annual profit per share between $11.88 and $12.08, compared with its previous expectations of $11.67 to $11.87.
Cantor Fitzgerald analyst Carter Gould said AbbVie "delivered the stand-out print so far across large-cap biopharma."
The company earned quarterly adjusted profit per share of $2.97, compared with estimates of $2.88.
Established in 1977, AbbVie's Westport facility employs approximately 1,300 people. The campus has grown to almost 750,000 sq. ft. on a 61-acre campus, and it encompasses a pharmaceuticals facility, two biologics plants and an ocular implant facility that manufactures a range of leading eye care products.
The company's plant in Carrigtwohill is a modern 'bulk tablet' facility manufacturing solid and capsule formulations.
Reuters
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Irish Examiner
an hour ago
- Irish Examiner
Simon Harris ‘eager' to progress trade talks to avoid further tariffs
Tánaiste Simon Harris has said he is 'eager' to see further progress on trade talks around certain sectors, including the drinks industry, as a wave of US tariffs takes effect. Mr Harris said that while some areas have been agreed as exempt from tariffs between the European Union and the US, he wants to 'tease through the detail' of other areas, citing the pharma sector in particular. US President Donald Trump's tariffs took effect from Thursday, with exporters in Ireland facing a new 15% rate applying to imports to the US. There is huge potential and scope for the EU and the US to work together in the interests of patients, their economies, and the pharma industry It is not yet clear whether the drinks industry will be exempt from the new wave of tariffs. The Tanaiste said it is 'absolutely essential' to maximise the number of areas that can apply zero-for-zero tariffs. 'Whilst there are some areas that have already been agreed as exempt from tariffs between the US and the EU, I'm very eager to see more progress made in more areas, including for the drinks industry, which is an important part of the Irish economy,' Mr Harris said in a statement on Thursday. 'We'll also need to continue to work in the time ahead to tease through the detail in relation to particular sectors. 'From a pharma point of view, my position remains the same, as does the position of the European Union. 'There is huge potential and scope for the EU and the US to work together in the interests of patients, their economies, and the pharma industry. 'In many ways, the EU and the US are interdependent when it comes to pharma. In the very first instance, it's vital that the US keeps its agreement in terms of a tariff rate of no higher than 15% on the pharma industry. 'But actually, in the time ahead, it's important that we seek to further improve that. US pharma companies need to have a base in the European Union – and Ireland has been a very constructive, very good home for those businesses. They've done very well in Ireland. Freight trucks at Rosslare Europort in Co Wexford, Ireland (Niall Carson/PA) 'We need to continue to make sure that nothing happens that causes disruption to the industry or to global supply chains. So, there's much work to do in the weeks and months ahead. 'We also must continue to control what we can control and continue to make our country, and our European Union, as competitive as possible, as good a location as possible to invest in and create jobs. 'We must also look for other opportunities to diversify markets for Irish business. While we want to continue to do business with the US and indeed want to grow business. It is important that we take every opportunity to identify new markets.' He said the Government will publish a new Market Diversification Action Plan this month.
RTÉ News
an hour ago
- RTÉ News
CCPC: No evidence of competition issues among food retailers
An investigation by the Competition and Consumer Protection Commission (CCPC) into the grocery retailer sector has found there is no evidence indicating any issues regarding competition among retailers in terms of food prices. In its report the CCPC says that although inflation analysis shows "significant price increases since 2021 that have a real impact on consumers" the available data on supermarket profits "does not indicate that margins are notably high when compared to international comparators". Official figures show Irish consumers experienced a 27% increase in grocery prices between 2021 and June of this year. The CCPC says that while this rise is significant, it remains below the EU average increase of 35% over the same period, adding that only four other EU member states have experienced smaller price increases since 2021. However, the agency's 2025 high-level analysis of the grocery retail sector notes that "one key driver of recent food price rises is the increase of some agricultural product prices, which have been higher in Ireland than the European average". The Commission says that "while grocery prices have increased significantly since 2021, they have done so at a slower pace than some of the key input costs, such as agricultural prices. "This suggests that competition in the grocery market has helped limit the impact of increased agricultural prices on Irish consumers," the report says. For its probe of grocery retailers the CCPC analysed market concentration including new entrants and expansion, national and international trends in grocery prices, as well as profit margins of major grocery retailers. It says that recent profit figures from grocery retailers "continue to be in line with the margin band estimated by the CCPC in 2023", which was between 1% and 4%. Tesco Ireland's operating profit margin for the year to Feb 2024 was 3.7% (down from 4% in the previous year), Musgrave's (which owns SuperValu and Centra) profit margin in 2023 was 2.4%, down from 2.5% the previous year. Aldi's profit margin in 2023 was 0.8%, down from 0.9% in 2022. Dunnes and Lidl do not publish accounts for their Irish operations, however, Lidl's UK accounts (which combine UK and Irish activities) for 2023/2024 show a profit margin of 2.1%. The CCPC says the profit margins for Irish supermarkets "align closely with those observed in the UK and other parts of Europe". The consumer watchdog also points out that "increased competition in the market over the last 20 years has brought sizeable benefits for consumers" and that "food price increases in Ireland have been well below the European average, and this coincides with increasing competition in the Irish market". The CCPC previously carried out a similar analysis of the retail grocery sector in 2023, which had similar findings, but amid sustained food inflation the Government asked the Commission to re-assess the sector. While the CCPC says it has not seen evidence to "justify an in-depth study of the grocery retail sector" it says it "remains a key market for the CCPC, which we will continue to review".
Extra.ie
an hour ago
- Extra.ie
Irish are evenly split on whether taxes should be lower or higher
More than a third of Irish taxpayers believe taxes are too high and should be lowered even if it means fewer or diminished public services. The results of a new European Commission survey on public attitudes to taxation reveal 35% of Irish people favour lower taxes. However, attitudes are split almost evenly on the issue, as 34% stated they prefer higher taxes if it means more or better public services. A further 25% said they thought that both taxes and public services should stay at the same level. Pic: Getty Images The Eurobarometer poll surveyed the attitudes of almost 25,800 citizens across the 27 EU member states on taxation, including over 1,000 people in the Republic. Asked what taxes should be reduced first, two-thirds of Irish respondents (67%) said those on wages, followed by those on housing (24%). Only 17% of Irish respondents said they would support a reduction in VAT, the second lowest rate within the EU, where the average is 37%. The relatively low level of support for a reduction in VAT rates among Irish taxpayers is interesting, given the long-running campaign by the tourism industry for the VAT rate on the sector to be lowered from 13.5% to 9%. Pic: Shutterstock Conversely, when asked what taxes should be increased to pay for public services, almost half (49%) said taxes on tobacco and alcohol, followed by taxes on investment income (33%) and taxes on business (26%). In general, Irish respondents were largely in agreement that people in the Republic paid taxes in proportion to their income and wealth, with 76% holding such a view. The Eurobarometer poll also revealed that 47% of us found filing their tax returns relatively easy. Income tax was identified as the most complicated tax to calculate and pay by 30% of Irish respondents. Pic: Shutterstock On a negative note, only 36% said they believed they received adequate support for filing their tax returns – the fourth lowest rate in the EU – while half said support levels were inadequate. The report also highlighted that two-thirds of Irish taxpayers (67%) would favour a minimum level of tax being imposed on the wealthiest individuals based on their wealth and not just their income, with 22% claiming such a policy would have too many drawbacks in terms of loss of competitiveness and flight of capital. More than three-quarters of us (77%) also supported large multinational companies being required to pay a minimum amount of tax in the country where they operate. A majority of Irish taxpayers were positive towards taxation being used for environmental purposes, with 62% supportive of using taxes to discourage the usage or consumption of environmentally harmful goods and polluting energy sources. However, 39% of Irish people said they would oppose taxes on air travel being increased – the fourth highest rate in the EU after Cyprus, Estonia and Malta – although a narrow majority of EU taxpayers would support such a measure. The survey showed 42% of Irish respondents said they had either a good or very good understanding of their country's taxation system – the seventh highest rate and above the EU average of 35%. It also revealed that Irish citizens are more likely than any of their European counterparts to have bought tobacco abroad in the previous 12 months, at 21%, while 15% also said they had bought alcohol online from a retailer in another country over the same period, which was the second highest rate after the Netherlands at 16%. Overall, almost four out of 10 respondents across the EU supported lower taxes even if it meant a reduction in public services. Among those in favour of higher taxes, almost half said they would first increase taxes on tobacco and alcohol. The report concluded: 'By assessing and understanding EU public opinion on this topic, the European Commission is better able to shape its taxation policy around the needs and priorities of EU citizens.'
