AbbVie Inc. (NYSE:ABBV) growth trajectory should continue for many years backed by a robust pipeline of drugs, most of which are in late stage trials. The giant drug maker has enjoyed an impressive run this year mostly driven by sales of its most important drug, Humira.
Humira Dependence
Humira accounts for nearly 60% of the company’s annual sales as a novel treatment for rheumatoid arthritis, psoriatic arthritis among other auto immune diseases. In the recent quarter, the drug generated sales of $4.1 billion making it one of the best selling drugs in the world.
Imbruvica is the company’s other blockbuster drug with annual sales of $1.8 billion. The drug could generate peak annual sales of $7 billion especially on being approved for the treatment of chronic lymphocytic after positive trials.
The threat posed by competition and Biosimilars has in the recent past raised doubts about AbbVie’s growth prospects given its strong dependence on Humira. It appears that the company has already factored in the imminent threat as it looks to safeguard its revenue base.
AbbVie Pipeline
The company’s chief financial officer, Bill Chase, has sought to quash the concerns by affirming that the company is already looking into the future. The company is currently working on 20 new assets that should help strengthen current revenue base by 2020.
Abbvie’s pipeline features 12 pivotal trials that should be out by the end of the year. Venclexta is one of the drugs that has already won approval as a novel treatment for CLL and could generate peaks sales of up to $3.5 billion. Rova T is another experimental cancer drug whose sales could inject an additional $5 billion in the company’s balance sheet if approved.
Even as AbbVie continues to explore ways of safeguarding its growth trajectory Humira Revenue is expected to remain steady for the foreseeable future. The company is currently working on enforcing Humira intellectual property rights until 2022.
Abbvie’s topline should continue to grow at a healthy pace given the pipeline of drugs on the way expected to safeguard current revenue streams.
AbbVie was down by 1.88% in Tuesday’s trading session to end the day at $72.52 a share.
