FILE PHOTO: A sign stands outside a Abbvie facility in Cambridge, Massachusetts, U.S., May 20, 2021. REUTERS/Brian Snyder/File Photo

By Patrick Wingrove and Puyaan Singh

(Reuters) -AbbVie said on Friday the Trump administration was pushing for steeper cuts in this year's Medicare drug price negotiations, which in 2024 yielded discounts of as much as 79%.

AbbVie's irritable bowel syndrome drug Linzess and antipsychotic medication Vraylar were among the 15 drugs targeted this year for Medicare price negotiations that end on Saturday.

The company said these cuts, which have yet to be made public and will take effect in 2027, would not affect its long-term guidance.

AbbVie shares dropped more than 4% after it said quarterly sales of its aesthetic products - which include anti-wrinkle treatment Botox - fell 3.7% from last year.

ANALYSTS FOCUS ON DISCOUNTS

As drug companies post third-quarter results, analysts have asked whether U.S. President Donald Trump - who has prioritized lowering drug prices this year - is pressing for deeper discounts than his predecessor.

Last year, the Biden administration announced it hoped to save $6 billion in 2026 alone after negotiating down the prices of 10 top-selling prescription drugs used by Medicare. AbbVie's big-selling leukemia drug Imbruvica faced the lowest percentage cut of 38% from those negotiations.

AbbVie on Friday raised its 2025 profit forecast, after strong sales of newer immunology drugs Skyrizi and Rinvoq helped lift third-quarter results above estimates.

The company expects adjusted annual profit per share of between $10.61 and $10.65, compared with its previous expectation of $10.38 to $10.58.

The North Chicago-based drugmaker has been leaning on Skyrizi and Rinvoq to offset declining U.S. sales of its once best-selling arthritis treatment Humira since close copies of the drug arrived in 2023.

AbbVie Chief Financial Officer Scott Reents said on Friday's analyst call the company expects total 2025 Skyrizi global sales of $17.3 billion, $200 million more than in its previous forecast.

Sales of aesthetic products disappointed investors, however.

"Another weaker quarter for the aesthetics business could raise some eyebrows ... continued headwinds mount across products, including Botox and fillers," said BMO Capital Markets analyst Evan Seigerman.

Concerns about the economy and inflation are weighing on customer spending, pulling growth in the category below the company's previous assumptions globally, Jeffrey Stewart, AbbVie's chief commercial officer, told analysts.

Its quarterly sales of $15.78 billion beat analysts' average estimate of $15.59 billion, according to data compiled by LSEG. The company said it expected fourth-quarter net sales of $16.3 billion for 2025's fourth quarter.

Global sales of Humira came in at $993 million in the third quarter, missing estimates of $1.15 billion, and marking the first quarter the drug's sales dropped below $1 billion since the start of U.S. competition.

During the quarter, Skyrizi brought in sales of $4.71 billion, surpassing estimates of $4.44 billion, while Rinvoq sales of $2.18 billion topped estimates of $2.12 billion.

"The delta between actuals and consensus are narrower than previous quarters, but both drugs managed to pull it out of the bag," Bernstein analyst Courtney Breen said.

The drugmaker earned quarterly profit per share of $1.86, above estimates of $1.77 per share.

(Reporting by Patrick Wingrove in New York and Siddhi Mahatole and Puyaan Singh in Bengaluru; Editing by Devika Syamnath, Rod Nickel)