Research-based biopharmaceutical company AbbVie Inc. (ABBV) Friday reported a fall in the third-quarter profit, reflecting higher expenses. Sales, however, grew on continued strength of its blockbuster rheumatoid arthritis drug Humira, and several other key brands.
The company also lifted its adjusted earnings per share outlook for the full year.
Global Humira sales climbed 17.5 percent, or 17.8 percent on an operational basis, excluding the impact of foreign exchange rate fluctuations. Total company sales growth was also driven by strong growth from key products including Kaletra, Synthroid, Creon, Synagis and Duodopa.
For the third quarter, net earnings fell to $506 million or $0.31 per share from $964 million or $0.60 per share in the previous year.
Adjusted earnings per share, excluding intangible asset amortization expense and other specified items, were $0.89, while the company posted $0.82 per share last year.
On average, 11 analysts polled by Thomson Reuters expected the company to report earnings of $0.77 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales grew 7.8 percent to $5.02 billion from $4.66 billion a year earlier. Analysts' revenue consensus for the quarter was $4.82 billion.
On an operational basis, sales grew 8.3 percent, excluding a 0.5 percent unfavorable impact from foreign exchange rate fluctuations. Excluding sales from lipid franchise due to the loss of exclusivity, sales increased 13.5 percent on an operational basis in the quarter.
"Our third-quarter results reflect the strong performance of our business with double-digit growth from HUMIRA and several other key brands. Our underlying business grew nearly 14 percent in the quarter excluding lipids," said Richard Gonzalez, chairman and chief executive, AbbVie.
Total operating cost and expenses advanced to $3.81 billion from $3.29 billion a year ago.
For full year 2014, Abbvie now expects adjusted earnings per share to be in the range of $3.25 to $3.27, up from the prior outlook of $3.06 to $3.16. The company said its outlook continues to exclude any potential revenue from the expected 2014 U.S. launch of its HCV therapy.
Street expects the company to earn $3.16 per share for the year. AbbVie sees 2014 earnings per share of $1.15 to $1.17 on a GAAP basis.
ABBV is currently trading at $62.44, up 2.06 percent.
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