Shares of AbbVie (ABBV 3.57%) were bouncing along merrily for most of Thursday's trading session, until news of a fresh demand from the White House quashed the rally. Initially, the market was cheered by better-than-expected quarterly results published by the company that morning. Ultimately AbbVie's stock closed down slightly lower in price, roughly mirroring the trajectory of the S&P 500 index.
Second-quarter rises
That late-session swoon was kind of a shame, because AbbVie's second quarter boasted some good fundamentals.
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Total revenue came in at just over $15.4 billion, an increase of almost 7% over the year-ago result. Of its blockbuster drugs, Skyrizi did quite well, with sales rising 62% to $4.4 billion. Rinvoq also rocketed higher, by 42% to more than $2 billion. On the other hand, the fading Humira -- now that it's been subject to competition by biosimilars -- fell by 58% to less than $1.2 billion.
As for net income, on a non-GAAP (adjusted) basis it landed at nearly $5.3 billion, or $2.97 per share. That was well up from the year-ago profit of $4.7 billion.
On average, the pundits tracking AbbVie stock were collectively expecting a shade under $15 billion for revenue, and $2.96 per share for adjusted profitability.
AbbVie raised its bottom-line guidance for the entirety of 2025. It now believes adjusted net income will amount to $11.88 to $12.08 per share, up from the previous estimate of $11.67 to $11.87.
Trump's new move
The bullishness generated by those fundamentals and the lifted guidance was tempered by the latest demand from President Donald Trump. Thursday afternoon, news broke that he sent letters to a clutch of major U.S. pharmaceuticals insisting that they reduce prices for prescription drugs within 60 days.
One of the letters was sent to AbbVie CEO Rob Michael. In it, Trump wrote, "Right now, brand name drug prices in the United States are up to three times higher on average than elsewhere for the identical medicines."
"This unacceptable burden on hardworking American families ends with my administration," the president added.
