Medicare Part D Redesign To Offset 2025 Growth, AbbVie Says

Expectations for Skyrizi, Rinvoq skyrocket, and while AbbVie expects to return to compound annual growth in the high single digits this year, the Medicare drug benefit redesign will cut revenue by about 4%.

AbbVie exterior
AbbVie expects Medicare Part D reworking to cut revenues by 4% this year • Source: Alamy

The fourth quarter of 2024 was not without setbacks for AbbVie, which took a $3.5bn impairment against the value of its 2023 buyout of Cerevel after a Phase II failure in schizophrenia, but the pharma reported the expected strong growth for Skyrizi, Rinvoq, Venclexta and its neuroscience portfolio. Despite its overall optimism during its Q4 and full-year 2024 earnings call on 31 January, including an increased Skyrizi/Rinvoq peak sales estimate, AbbVie also raised its projection for the revenue impact of the Medicare Part D redesign this coming year.

Key Takeaways
  • AbbVie reported quarterly sales growth that beat consensus, including continued upward momentum for Skyrizi and Rinvoq, for the fourth quarter.
  • But despite strong financials and optimistic forecasts, AbbVie said it thinks redesign of Medicare Part D could cut into sales by about 4% this year

Earlier in January, Johnson & Johnson estimated that redesign of the Medicare prescription drug benefit would negatively impact its overall revenue in 2025 by about $2bn. Starting this year, Medicare will place a $2,000 cap on beneficiary out-of-pocket spending on prescription drugs. Another AbbVie peer,

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