Abbvie raises annual earnings guidance as Humira sales surge

North Chicago-based AbbVie Inc., which abandoned a $52 billion deal with Shire Plc. last week after changes to U.S. tax rules, raised its annual earnings guidance after sales of its top drug grew by 18 percent.

The drugmaker today increased its 2014 adjusted earnings forecast to $3.25 to $3.27 per share, up from $3.06 to $3.16. Third-quarter profit excluding one-time items of 89 cents a share beat by 12 cents the average of analysts' estimates compiled by Bloomberg.

AbbVie and Shire terminated what would have been the biggest U.S. tax inversion after AbbVie's board pulled its support for the deal in the wake of proposed changes to U.S. rules governing the transactions. In buying Shire, which has its legal address in Dublin, AbbVie would have moved its tax domicile to the U.K. from North Chicago, Illinois, to lower its tax bill and access profits trapped overseas.

"The original price for the proposed transaction could no longer be justified," AbbVie said in a statement announcing the financial results. The changes to the U.S. tax rules "introduced an unacceptable level of risk and uncertainty," AbbVie said, as well as concerns that they could change further.

After walking away from the deal, AbbVie announced a $5 billion share buyback and raised its quarterly dividend by 17 percent, to 49 cents per share.

AbbVie shares rose 2.6 percent to $62.75 at 9:57 a.m. in New York.

Humira, the rheumatoid arthritis drug that makes up the majority of AbbVie's revenue, sold $3.26 billion, up 18 percent, including a 25 percent gain in the U.S. Total sales rose 7.8 percent to $5.02 billion.

Third-quarter net income fell to $506 million, or 31 cents a share, from $964 million, or 60 cents, a year earlier.