Drugmaker AbbVie reported better-than-expected second-quarter profit, but its sales disappointed Wall Street.
The FDA on Friday approved a new drug for the treatment of hepatitis C, creating a competitor to one of the most expensive drugs on the market. Technivie was approved for use in combination with ribavirin to treat patients without scarring and poor liver function.
Technivie is manufactured by Abbvie and is the first drug to be approved that can safely treat genotype four hepatitis C infections without the use of interferon, another drug used to treat the virus.
The North Chicago, Ill.-based company, which makes the blockbuster anti-inflammatory drug Humira, also reported Friday a 24.4% rise in profit to $1.37 billion, or 83 cents per share for Q2.
Earnings, adjusted for non-recurring costs and amortization costs, came to $1.08 per share.
Revenue rose 11.1% to $5.48 billion, mainly on a boost in sales of Humira. But, the results fell shy of Wall Street expectations, with five analysts surveyed by Zacks expecting $5.6 billion.
Humira sales rose 7.6 % to $3.54 billion. The company relies on the drug for the majority of its revenue. It is approved to treat more than a dozen conditions including rheumatoid arthritis, psoriasis and Crohn's Disease. But, it will start losing patent protection next year and could eventually face competition from Amgen Inc., which is developing a biosimilar version of the drug.
AbbVie's second-biggest seller, the hepatitis C drug Viekira Pak, was approved in December and brought in $385 million during the second quarter.
Viekira faces a crowded market with already established hepatitis C treatments including Gilead Sciences' Sovaldi and Harvoni. All three treatments are considered major improvements from earlier drug options.
Looking ahead, AbbVie expects full-year earnings in the range of $4.10 to $4.30 per share.
AbbVie declined $2.44, or 3.5%, on Friday to $68.08.
AbbVie shares have risen almost 8 percent since the beginning of the year, while the Standard & Poor's 500 index has increased 2%. The stock has increased 29% in the last 12 months.