Company expects increased competition to impact second-quarter revenue
- AbbVie shares close down 4.6% after warning about Humira volume erosion
- Second-quarter revenue expected to be $14 billion
- Increase in competition leading to higher volume erosion for Humira
- Full-year outlook remains in line with previous guidance
Shares of AbbVie closed down 4.6% after the company warned about the effects of losing exclusivity for its arthritis medication Humira. The drugmaker expects second-quarter revenue to be $14 billion, reflecting a higher level of volume erosion due to increased competition. Despite this, AbbVie’s full-year outlook remains in line with previous guidance. Chief Commercial Officer Jeffrey Ryan Stewart stated that the volume erosion is tracking as expected, and Chief Executive Robert Michael emphasized that the company is not saying volume is worse than originally guided. In the first quarter, AbbVie reported a 36% drop in Humira-related revenue, leading to a decline in revenue from its immunology portfolio. However, the company’s overall performance was boosted by gains in other areas, and it raised its annual adjusted earnings guidance.
Factuality Level: 8
Factuality Justification: The article provides specific details about AbbVie’s stock performance, the impact of losing exclusivity of its patent for Humira, and the company’s financial outlook. The information is presented in a straightforward manner without digressions or sensationalism. There are no obvious signs of bias or misleading information, and the overall reporting appears to be factually accurate.
Noise Level: 3
Noise Justification: The article provides relevant information about AbbVie’s stock performance and the impact of losing exclusivity of its patent for Humira. It includes details about revenue, competition, and company outlook. The article stays on topic and supports its claims with data and quotes from company executives. However, it lacks a deeper analysis of the long-term implications of losing exclusivity or potential strategies the company could employ to mitigate the impact.
Financial Relevance: Yes
Financial Markets Impacted: Shares of AbbVie
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to financial topics as it discusses the impact of losing patent exclusivity on AbbVie’s shares and revenue.
Public Companies: AbbVie (ABBV)
Key People: Jeffrey Ryan Stewart (Chief Commercial Officer), Robert Michael (Chief Executive)
Reported publicly:
www.marketwatch.com 
