AbbVie (ABBV) was spun off from Abbott Laboratories (ABT) in 2013. Like many spinoffs, AbbVie has outperformed the overall stock market since inception.

Source: YCharts

Despite AbbVie’s short history as a publicly-traded security, it has operated for many years as a subsidiary of Abbott Laboratories.

In fact, if the company’s history under Abbott is accounted for, AbbVie is a member of the Dividend Aristocrats – a group of elite, shareholder-friendly stocks with 25+ years of consecutive dividend increases.

AbbVie recently reported earnings for the first quarter of fiscal 2017.

In this earnings report, there was one notable number with regard to sales of the company’s flagship drug that was much better than anticipated.

This article will discuss why AbbVie’s earnings report was better than anticipated, and what investors can expect from this stock moving forward.

Current Events

On April 27, 2017, AbbVie reported earnings for the first quarter ending March 31, 2017.

Investors should be pleased with one number in particular from this press release.

Sales of the company’s flagship drug Humira increased by an eye-popping 15.1% on a reported basis. On a constant-currency basis, results were even better – sales of Humira increased 15.8% ex-currency.

Why is this important?

Humira is the highest-grossing drug in the world.

It is also very important to AbbVie’s overall business. Humira‘s 2016 sales of $16.1 billion contributed 63% to AbbVie’s 2016 revenues.

Humira‘s impressive revenue growth is also in direct contradiction of what the markets expected. Like most pharmaceutical companies, AbbVie protects its drugs with a complex portfolio of intellectual property contracts and patents.

These patents began expiring at the end of 2016. Investors were worried that increased competition resulting from a lack of patent protection would reduce Humira sales and negatively affect AbbVie.