Drug Price Trends for SKYRIZI

Average Pharmacy Cost for SKYRIZI

These are average pharmacy acquisition costs (net of discounts) from a US national survey

Drug Name	NDC	Price/Unit ($)	Unit	Date
SKYRIZI 360 MG/2.4 ML ON-BODY	00074-1070-01	9069.04478	ML	2025-01-02
SKYRIZI 360 MG/2.4 ML ON-BODY	00074-1069-01	9069.04478	ML	2025-01-02
SKYRIZI 150 MG/ML PEN	00074-2100-01	21525.54879	ML	2025-01-02
SKYRIZI 150 MG/ML SYRINGE	00074-1050-01	21602.82586	ML	2025-01-02

Market Analysis and Price Projections for SKYRIZI

Introduction to SKYRIZI

SKYRIZI, developed by AbbVie, is a monoclonal antibody that targets the interleukin-23 (IL-23) pathway, making it a significant player in the treatment of various autoimmune diseases. Approved for conditions such as psoriasis, psoriatic arthritis, and Crohn’s disease, SKYRIZI has shown promising results and strong market uptake since its launch in 2019.

Current Market Performance

Since its launch in May 2019, SKYRIZI has exceeded initial sales expectations. In the first three months following its launch, the drug generated $216 million in revenue, surpassing AbbVie's initial expectation of $150 million for the entire year[4].

By the second quarter of 2020, SKYRIZI had achieved $330 million in sales, and by August of the same year, it had reached $1 billion in cumulative U.S. net sales. This strong performance is attributed to its differentiated clinical profile and the convenience of quarterly administration, which has resonated well with both physicians and patients[4].

Sales Projections

Short-Term Projections

For 2025, AbbVie has adjusted its sales projections for SKYRIZI, now expecting it to reach $7.5 billion, matching the projected sales for Rinvoq, another key drug in AbbVie's portfolio. This adjustment reflects SKYRIZI's continued strong performance in psoriasis and its growing uptake in other indications such as inflammatory bowel diseases[1][2].

Long-Term Projections

Looking ahead to 2027, AbbVie anticipates that SKYRIZI will reach more than $17 billion in sales. This forecast is driven by the drug's continued share capture in psoriasis and its increasing adoption in inflammatory bowel disease (IBD) treatments. The combined sales of SKYRIZI and Rinvoq are expected to exceed $27 billion by 2027, reflecting robust growth into the next decade[5].

Market Drivers

Clinical Efficacy and Safety

SKYRIZI's success is largely due to its superior efficacy, better tolerability, and less frequent dosing compared to older treatments like IL-17 and TNF inhibitors. Physicians have expressed a clear preference for IL-23 inhibitors like SKYRIZI, citing these advantages as key factors[4].

Expanding Indications

AbbVie is actively expanding the indications for SKYRIZI. The drug is currently being studied for ulcerative colitis, and positive phase 3 study readouts have exceeded expectations, contributing to higher-than-anticipated global sales projections[1][3].

Payer Coverage and Market Access

AbbVie has been working diligently to secure favorable formulary placement for SKYRIZI, offering discounts to payers to ensure coverage. This strategy has helped in gaining preferred status for the drug, despite the existing dominance of Humira in the market[4].

Competitive Landscape

Market Share and Preference

Dermatologists believe that SKYRIZI will eventually secure around 60% of all IL-23 users, indicating a strong market preference for this drug. J.P. Morgan analysts project that IL-23 inhibitors, led by SKYRIZI, will emerge as the go-to first-line psoriasis treatment over the next three years[4].

Emerging Therapies

While SKYRIZI is poised to dominate the IL-23 inhibitor market, other emerging therapies for ulcerative colitis and psoriasis are expected to provide competition. However, AbbVie's robust clinical trial pipeline and ongoing research are expected to maintain SKYRIZI's competitive edge[3].

Pricing and Revenue Impact

Wholesale Acquisition Cost

As of January 2020, the wholesale acquisition cost for one dose of SKYRIZI, administered every three months, was $15,842. This pricing, combined with the drug's efficacy and convenience, has helped in securing strong revenue growth[4].

Revenue Growth

The revenue growth of SKYRIZI is expected to be significant, with the drug contributing to double-digit percentage sales growth for AbbVie in the coming years. The combined sales of SKYRIZI and Rinvoq are anticipated to help AbbVie absorb the revenue impact of Humira's loss of exclusivity and drive the company's return to growth in 2025 and beyond[2][5].

Regulatory and Developmental Activities

Clinical Trials and Approvals

SKYRIZI has received approvals for various indications, including psoriasis, psoriatic arthritis, and Crohn’s disease. Ongoing clinical trials are exploring additional indications such as ulcerative colitis, which are expected to further expand the drug's market potential[1][3].

Regulatory Milestones

The drug's regulatory milestones, including recent approvals and ongoing studies, are crucial for its market success. Positive phase 3 study readouts have reinforced AbbVie's confidence in SKYRIZI's profile and have contributed to the upward revision of sales projections[1].

Market Forecast Analysis

Global Market Scenario

The global market for SKYRIZI, particularly in the seven major markets (the United States, EU4, the United Kingdom, and Japan), is expected to grow significantly. The forecasted sales data from 2024 to 2032 indicate a substantial increase in market size, driven by incremental healthcare spending and extensive research in autoimmune diseases[3].

SWOT Analysis

A detailed SWOT analysis highlights the strengths of SKYRIZI, including its clinical efficacy, safety profile, and market preference. However, it also notes potential weaknesses such as competition from emerging therapies and the need for continuous regulatory approvals[3].

Key Takeaways

• Strong Sales Performance: SKYRIZI has exceeded initial sales expectations and is projected to reach $7.5 billion in sales by 2025.
• Expanding Indications: The drug is being studied for additional indications, including ulcerative colitis, which will further boost its market potential.
• Market Preference: SKYRIZI is preferred by physicians due to its superior efficacy, better tolerability, and less frequent dosing.
• Long-Term Growth: By 2027, SKYRIZI is expected to reach more than $17 billion in sales, contributing to AbbVie's robust growth into the next decade.
• Regulatory and Developmental Activities: Ongoing clinical trials and regulatory approvals are crucial for the drug's continued success.

FAQs

What are the current approved indications for SKYRIZI?

SKYRIZI is currently approved for psoriasis, psoriatic arthritis, and Crohn’s disease.

How does SKYRIZI compare to other treatments in the market?

SKYRIZI is preferred over older treatments like IL-17 and TNF inhibitors due to its superior efficacy, better tolerability, and less frequent dosing.

What are the projected sales for SKYRIZI in 2025 and 2027?

SKYRIZI is projected to reach $7.5 billion in sales by 2025 and more than $17 billion by 2027.

What factors are driving the strong sales performance of SKYRIZI?

The strong sales performance is driven by its differentiated clinical profile, quarterly administration, and favorable payer coverage.

How is AbbVie addressing the competition from emerging therapies?

AbbVie is addressing competition through ongoing research, expanding indications, and securing favorable formulary placement for SKYRIZI.

Sources

1. FiercePharma: "AbbVie adjusts 2025 individual sales projections for Rinvoq, Skyrizi but not their combined"[1]
2. BioPharma Dive: "Looking past Humira, AbbVie boosts sales forecasts for successor drugs"[2]
3. MarketResearch.com: "SKYRIZI Emerging Drug Insight and Market Forecast – 2032"[3]
4. Pharmaceutical Executive: "Succession Plan: Skyrizi"[4]
5. FiercePharma: "As Humira plummets, AbbVie dials up Rinvoq and Skyrizi sales goals to combined $27B"[5]