shironagasukujira/iStock via Getty Images
AbbVie (NYSE:ABBV) said Friday that its wrinkle therapy Botox-led aesthetics franchise could benefit from the rising demand for obesity drugs in the long term as consumers become more concerned about their appearance following weight loss therapy.
Its comments came after the North Chicago, Illinois-based pharma giant posted a surprising revenue beat in Q4 despite ongoing biosimilar competition against its blockbuster arthritis therapy Humira.
Its Botox business added with its $63B Allergan buyout in 2020 exceeded Street forecasts, as net revenue from Botox Cosmetics rose ~12% YoY to $718M, following a ~3% YoY decline in the preceding quarter.
“We do see it as a long-term tailwind any time people are getting more engaged in their appearance,” said Carrie Strom, head of AbbVie’s Allergan Aesthetics unit.
“And as we ask our consumers and our customers about it, really, what we’ve learned is that it does reinforce the long-term tailwind because the majority of people who engage in these medical weight loss products are more interested in aesthetics afterwards than they were before,” she added.
However, she noted that the company has not yet seen any positive or negative impact from weight loss drugs on the business so far.
However, weight loss drugmakers Novo Nordisk (NVO) (OTCPK:NONOF) and Eli Lilly (LLY) have become some of the largest publicly listed companies in the world amid rising demand for their new class of obesity drugs called GLP-1 agonists.
During the earnings call, ABBV projected ~$11.9B in net revenue, including $1.3B from its aesthetics business, for Q1 2024. It also expects adjusted earnings per share of $2.30–$2.34 for the quarter. Wall Street analysts’ estimates for the company’s Q1 revenue and EPS stand at $12.3B and $2.50, respectively.
