Market Dynamics and Financial Trajectory for Skyrizi
Introduction
Skyrizi, developed by AbbVie, is a significant player in the immunology market, particularly in the treatment of autoimmune disorders such as psoriasis, arthritis, and Crohn’s disease. Since its launch in May 2019, Skyrizi has demonstrated impressive market performance and financial growth.
Clinical Profile and Market Differentiation
Skyrizi's success can be attributed to its differentiated clinical profile. It has shown better skin clearance rates compared to similar drugs on the market and offers the advantage of less-frequent dosing, specifically quarterly administration. This has resonated well with both physicians and patients[1].
Launch and Initial Sales Performance
Following its launch, Skyrizi recorded stronger-than-expected sales. In the first three months from October to December 2019, it generated $216 million in revenue, exceeding the company’s initial expectation of $150 million for the year. The drug saw strong prescription volume, with about 1,700 prescribing physicians and roughly 3,750 patients treated within the first 11 weeks of its launch[1].
Market Share and Expansion
By the second quarter of 2020, Skyrizi had established and expanded its market share in the psoriasis patient segment, including both new and switching patients, to over 30%. This rapid growth led to $330 million in sales in the second quarter of 2020, and by August 2020, it had achieved $1 billion in cumulative US net sales[1].
Financial Performance
In recent years, Skyrizi's financial performance has been robust. For the full year 2023, global Skyrizi net revenues reached $2.394 billion, representing a 51.9% increase on a reported basis and 51.6% on an operational basis[2].
As of the third quarter of 2024, Skyrizi's global net revenues surged to $3.205 billion, a 50.8% increase on a reported basis and 51.5% on an operational basis. This growth has been a key driver for AbbVie's immunology portfolio, which also includes Humira and Rinvoq[5].
Competitive Landscape
The immunology market is highly competitive, especially with the entry of biosimilars for Humira, AbbVie's best-selling drug. However, Skyrizi has managed to navigate this landscape effectively. By the third quarter of 2024, Skyrizi had overtaken Humira as AbbVie's top-selling drug, largely due to strategies like "product hopping" to avoid competition from biosimilars[4].
Impact of Biosimilars
The entry of biosimilars for Humira has led to a decline in Humira's sales. For instance, in the third quarter of 2024, Humira's global revenues fell by 37.2% to $2.227 billion, while Skyrizi and Rinvoq saw significant increases. Despite the growth in adalimumab biosimilar prescriptions, the total adalimumab volume has dropped, attributed to the rising popularity of Skyrizi and Rinvoq[4].
Future Projections
AbbVie has set ambitious sales forecasts for Skyrizi and Rinvoq. CEO Richard Gonzalez expects these two drugs to generate at least $17.5 billion in 2025 and more than $21 billion in 2027. This growth will be driven by expanding the indications for these drugs to cover a broader range of inflammatory diseases, similar to the strategy that made Humira a $20 billion revenue generator[3].
Pricing and Access
The wholesale acquisition cost for one dose of Skyrizi every three months is significant, at $15,842 as of January 2020. However, AbbVie has worked closely with payers to ensure coverage for Skyrizi and Rinvoq, offering discounts on Humira to secure favorable formulary placement for these newer drugs[1].
Research and Development
AbbVie continues to invest in the development of Skyrizi, studying its efficacy in additional indications such as ulcerative colitis. This ongoing research aims to further broaden the drug's market potential and ensure long-term growth[3].
Key Takeaways
- Strong Clinical Profile: Skyrizi's better skin clearance rates and less-frequent dosing have been key differentiators.
- Rapid Market Adoption: The drug has seen strong prescription volume and market share expansion since its launch.
- Financial Growth: Skyrizi has achieved significant revenue milestones, including $3.205 billion in the third quarter of 2024.
- Competitive Advantage: It has overtaken Humira as AbbVie's top-selling drug, despite the entry of biosimilars.
- Future Projections: Ambitious sales forecasts predict combined sales of Skyrizi and Rinvoq to exceed $21 billion by 2027.
- Pricing and Access: AbbVie has worked to ensure coverage and favorable formulary placement for Skyrizi.
FAQs
Q: What are the key clinical advantages of Skyrizi?
A: Skyrizi offers better skin clearance rates and the advantage of less-frequent dosing, specifically quarterly administration.
Q: How has Skyrizi performed financially since its launch?
A: Skyrizi has achieved significant financial growth, reaching $3.205 billion in global net revenues in the third quarter of 2024, with a 50.8% increase on a reported basis.
Q: How has the entry of biosimilars affected Skyrizi's market position?
A: Despite the entry of biosimilars for Humira, Skyrizi has overtaken Humira as AbbVie's top-selling drug, largely due to strategies like "product hopping."
Q: What are the future sales projections for Skyrizi and Rinvoq?
A: AbbVie expects Skyrizi and Rinvoq to generate at least $17.5 billion in 2025 and more than $21 billion in 2027.
Q: What ongoing research is AbbVie conducting on Skyrizi?
A: AbbVie is studying Skyrizi's efficacy in additional indications such as ulcerative colitis to further broaden its market potential.
Sources
- Pharmaceutical Executive - Succession Plan: Skyrizi
- AbbVie Investors - AbbVie Reports Full-Year and Fourth-Quarter 2023 Financial Results
- Biopharma Dive - Looking past Humira, AbbVie boosts sales forecasts for successor ...
- Managed Healthcare Executive - Skyrizi Overtakes Humira in U.S. Sales Numbers
- PR Newswire - AbbVie Reports Third-Quarter 2024 Financial Results
