The introduction of BeiGene’s groundbreaking oral treatment, Brukinsa, has taken a toll on the sales of AbbVie and Johnson & Johnson’s leukemia drug, Imbruvica. However, another factor poised to impact Imbruvica’s future is the Inflation Reduction Act. In August, the Centers for Medicare & Medicaid Services (CMS) identified Imbruvica as one of 10 drugs subject to price negotiations in 2026.
AbbVie‘s recent third-quarter earnings report revealed a significant $2.1 billion impairment charge for Imbruvica, which has resulted from revised cash flow projections. This charge has reduced Imbruvica’s carrying value in the United States to $1.8 billion. While the negotiations are ongoing, AbbVie refrained from disclosing specific price details.
The CMS is set to initiate price negotiations for the listed drugs, including Imbruvica, with initial offers scheduled for February 1, 2024. Negotiations are anticipated to span six months, with AbbVie expected to learn the final price on September 1, 2024.
Imbruvica sales for the third quarter of this year were reported at $908 million, marking a 20% decrease from the same period in 2022. The year-to-date Imbruvica sales for the first three quarters of this year totaled $2.7 billion, reflecting a 22% decline compared to the corresponding period last year.
In contrast, BeiGene reported robust Brukinsa sales in its last quarterly report, with sales exceeding $211 million, including $139 million from the U.S. market. A year ago, BeiGene showcased Brukinsa’s superiority over Imbruvica in a head-to-head trial for previously treated chronic lymphocytic leukemia (CLL) and small lymphocytic lymphoma (SLL).
Despite the challenges faced by Imbruvica, AbbVie reported overall third-quarter revenue of $13.9 billion, indicating a 6% year-over-year decrease. The company raised its revenue forecast for the year by $600 million, following lower erosion than initially anticipated. AbbVie’s immunology follow-on treatments, Skyrizi and Rinvoq, contributed to compensation for the decline in sales, with both products achieving over 50% sales growth in the quarter. The combined sales of Skyrizi and Rinvoq for the first three quarters reached $8.1 billion.
While Humira sales declined by 36% year-over-year, primarily due to price cuts, the drug’s performance remains pivotal to AbbVie’s revenue, with expectations of approximately $7 billion in sales for 2024. Humira has generated $11.1 billion in sales for the first three quarters of the year, even in the face of biosimilar competition in the U.S.
