AbbVie Inc said on Friday that it estimates the pandemic to significantly restrict the sales of Botox and related aesthetic products to be purchased by the U.S. drugmaker via its Allergan Plc acquisition.
Among the key drivers of AbbVie's $63 billion offer for Allergan, which is set to close later this month, was the blockbuster wrinkle remedy, which has both cosmetic and medical uses.
Botox is performed by cosmetic surgeons and other professionals who either have been shut down with other non-essential companies or have seen clients avoiding unwanted contact in the midst of stay-at-home initiatives to prevent coronavirus spreading.
AbbVie disclosed its adjusted earnings for the quarter ended March were $3.01 billion, or $2.42 per share, against $2.46 billion, or $1.65 per share, in the comparable year-earlier period. Analysts surveyed by FactSet had expected earnings of $2.25 per share.
The company's sales globally hit $8.62 billion against $7.63 billion from the previous year, also ahead of analysts' estimates of $8.31 billion revenue.
Worldwide sales of its popular arthritis treatment Humira were pegged at $4.7 billion, a rise of 5.8 percent, as local sales cushion a decline in international earnings. Net revenue from its hematologic oncology portfolio came in at $1.55 billion, a rally of over 31 percent, courtesy of robust global sales of its Imbruvica and Venclexta cancer-fighting drugs.
The company reduced its 2020 earnings per share projection to a range of $7.60 to $7.70 from a $7.66-$7.76 prior range. It stays to its modified EPS forecast of $9.61 to $9.71 for 2020.
The firm has said it supports COVID-19 studies by partnering with health authorities to see if its HIV treatment Kaletra/Aluvia can be successful against the disease.
The company has conducted a Phase 2 clinical trial to determine the use of Imbruvica in patients with mild to extreme COVID-19. Stock jumped by 0.9 percent in pre-market but dropped by 7 percent in the year to date, as the S&P 500 SPX fell by 10 percent.
Humira is seen to lose patent protection in the US, its biggest source of income, in 2023 which is part of the reason for the buyout of Allergan.
On the other hand, sales of its new psoriasis drug, Skyrizi, hit $300 million. But the company said that new patient additions were impacted by people avoiding doctor consultations during the health crisis.
The company trimmed its 2020 outlook for US Humira sales growth to 7 percent from 9 percent, as it anticipates the pandemic to push more patients to more affordable government health programs from commercial health insurance.
