- Reports First-Quarter Diluted EPS of $0.77 on a GAAP Basis, an Increase of 492.3
Percent; Adjusted Diluted EPS of $2.31, a Decrease of 6.1 Percent; These Results
Include an Unfavorable Impact of $0.08 Per Share Related to Acquired IPR&D and
Milestones Expense
- Delivers First-Quarter Net Revenues of $12.310 Billion, an Increase of 0.7 Percent on a
Reported Basis and 1.6 Percent on an Operational Basis
- First-Quarter Global Net Revenues from the Immunology
Portfolio Were $5.371 Billion, a
Decrease of 3.9 Percent on a Reported Basis, or 3.1 Percent on an
Operational Basis, Due to Humira Biosimilar Competition; Global
Humira Net Revenues Were $2.270
Billion; Global Skyrizi Net Revenues Were $2.008 Billion; Global Rinvoq Net Revenues Were
$1.093 Billion
- First-Quarter Global Net Revenues from the Oncology
Portfolio Were $1.543 Billion, an
Increase of 9.0 Percent on a Reported Basis, or 9.8 Percent on an
Operational Basis; Global Imbruvica Net Revenues Were $838 Million; Global Venclexta Net Revenues Were
$614 Million
- First-Quarter Global Net Revenues from the
Neuroscience Portfolio Were $1.965
Billion, an Increase of 15.9 Percent on a Reported Basis, or
16.0 Percent on an Operational Basis; Global Botox Therapeutic Net
Revenues Were $748 Million; Global
Vraylar Net Revenues Were $694
Million; Combined Global Ubrelvy and Qulipta Net Revenues
Were $334 Million
- First-Quarter Global Net Revenues from the Aesthetics
Portfolio Were $1.249 Billion, a
Decrease of 4.0 Percent on a Reported Basis, or 2.5 Percent on an
Operational Basis; Global Botox Cosmetic Net Revenues Were
$633 Million; Global Juvederm Net
Revenues Were $297 Million
- Successfully Completed Acquisition of ImmunoGen and its
Flagship Cancer Therapy, Elahere
- Raises 2024 Adjusted Diluted EPS Guidance Range from
$10.97 - $11.17 to $11.13 -
$11.33, which Includes an Unfavorable
Impact of $0.08 Per Share Related to
Acquired IPR&D and Milestones Expense Incurred During the First
Quarter 2024
NORTH
CHICAGO, Ill., April 26,
2024 /PRNewswire/ -- AbbVie (NYSE:ABBV) announced
financial results for the first quarter ended March 31, 2024.
"We continue to demonstrate outstanding operational execution
and delivered another quarter of strong results," said Richard A. Gonzalez, chairman and chief
executive officer, AbbVie. "I couldn't be more proud of the
organization we have built over the past 11 years. We've
established an exemplary company culture, developed a productive
R&D engine, delivered top-tier financial performance and made a
remarkable impact on patients and the communities we serve."
"I want to thank Rick for his exceptional leadership since
AbbVie's inception and I am deeply honored to serve as the
company's next CEO," said Robert A.
Michael, president and chief operating officer, AbbVie.
"First quarter results were well ahead of our expectations, driven
by excellent performance from our ex-Humira growth platform. Based
on our strong results and significant momentum, we are raising our
full-year outlook."
First-Quarter Results
- Worldwide net revenues were $12.310
billion, an increase of 0.7 percent on a reported basis, or
1.6 percent on an operational basis.
- Global net revenues from the immunology portfolio were
$5.371 billion, a decrease of 3.9
percent on a reported basis, or 3.1 percent on an operational
basis, due to Humira biosimilar competition.
- Global Humira net revenues of $2.270 billion decreased 35.9 percent on a
reported basis, or 35.2 percent on an operational basis. U.S.
Humira net revenues were $1.771
billion, a decrease of 39.9 percent. Internationally, Humira
net revenues were $499 million, a
decrease of 15.8 percent on a reported basis, or 11.6 percent on an
operational basis.
- Global Skyrizi net revenues were $2.008 billion, an increase of 47.6 percent on a
reported basis, or 48.0 percent on an operational basis.
- Global Rinvoq net revenues were $1.093 billion, an increase of 59.3 percent on a
reported basis, or 61.9 percent on an operational basis.
- Global net revenues from the oncology portfolio were
$1.543 billion, an increase of 9.0
percent on a reported basis, or 9.8 percent on an operational
basis.
- Global Imbruvica net revenues were $838 million, a decrease of 4.5 percent, with
U.S. net revenues of $610 million and
international profit sharing of $228
million.
- Global Venclexta net revenues were $614 million, an increase of 14.2 percent on a
reported basis, or 16.3 percent on an operational basis.
- Global Elahere net revenues were $64 million, reflecting a partial quarter of
sales based on the February 12, 2024
close date of the ImmunoGen acquisition.
- Global net revenues from the neuroscience portfolio were
$1.965 billion, an increase of 15.9
percent on a reported basis, or 16.0 percent on an operational
basis.
- Global Botox Therapeutic net revenues were $748 million, an increase of 4.1 percent on a
reported basis, or 4.5 percent on an operational basis.
- Global Vraylar net revenues were $694 million, an increase of 23.6 percent.
- Global Ubrelvy net revenues were $203 million, an increase of 33.8 percent.
- Global Qulipta net revenues were $131 million, an increase of 97.7 percent.
- Global net revenues from the aesthetics portfolio were
$1.249 billion, a decrease of 4.0
percent on a reported basis, or 2.5 percent on an operational
basis.
- Global Botox Cosmetic net revenues were $633 million, a decrease of 3.9 percent on a
reported basis, or 2.6 percent on an operational basis.
- Global Juvederm net revenues were $297 million, a decrease of 16.4 percent on a
reported basis, or 13.7 percent on an operational basis.
- On a GAAP basis, the gross margin ratio in the first quarter
was 66.7 percent. The adjusted gross margin ratio was 82.9
percent.
- On a GAAP basis, selling, general and administrative (SG&A)
expense was 26.9 percent of net revenues. The adjusted SG&A
expense was 24.6 percent of net revenues.
- On a GAAP basis, research and development (R&D) expense was
15.8 percent of net revenues. The adjusted R&D expense was 14.7
percent of net revenues.
- Acquired IPR&D and milestones expense was 1.3 percent of
net revenues.
- On a GAAP basis, the operating margin in the first quarter was
22.7 percent. The adjusted operating margin was 42.2 percent.
- On a GAAP basis, net interest expense was $453 million. The adjusted net interest expense
was $429 million.
- On a GAAP basis, the tax rate in the quarter was 21.8 percent.
The adjusted tax rate was 14.8 percent.
- Diluted EPS in the first quarter was $0.77 on a GAAP basis. Adjusted diluted EPS,
excluding specified items, was $2.31.
These results include an unfavorable impact of $0.08 per share related to acquired IPR&D and
milestones expense.
Note: "Operational" comparisons are presented at constant
currency rates that reflect comparative local currency net revenues
at the prior year's foreign exchange rates.
Recent Events
- AbbVie announced that its board of directors unanimously
selected Robert A. Michael, AbbVie's
current president and chief operating officer, to succeed
Richard A. Gonzalez as the company's
chief executive officer (CEO). Mr. Gonzalez, who has served as CEO
since AbbVie's formation in 2013, will retire from the role of CEO
and become executive chairman of the board of directors, effective
July 1, 2024. Additionally, the board
has appointed Mr. Michael as a member of the board of directors
effective July 1, 2024.
- AbbVie announced that it completed its acquisition of
ImmunoGen. This transaction added ImmunoGen's flagship
antibody-drug conjugate (ADC), Elahere (mirvetuximab
soravtansine-gynx), for folate receptor-alpha (FRα)-positive
platinum-resistant ovarian cancer (PROC), to AbbVie's portfolio.
Late-stage development programs for Elahere provide opportunity to
expand into additional patient populations. The transaction also
included a pipeline of ADCs that further build on AbbVie's existing
oncology pipeline of novel targeted therapies and next-generation
immuno-oncology assets, which have the potential to create new
treatment possibilities across multiple solid tumors and
hematologic malignancies.
- AbbVie announced that the U.S. Food and Drug Administration
(FDA) granted full approval for Elahere for the treatment of
FRα-positive, platinum-resistant epithelial ovarian, fallopian tube
or primary peritoneal adult cancer patients treated with up to
three prior therapies. The full approval of Elahere was based on
the confirmatory MIRASOL Phase 3 trial in which data showed that
Elahere treatment resulted in an overall survival (OS) benefit and
reduced the risk of cancer progression by 35%.
- AbbVie announced that the FDA granted Priority Review of the
supplemental Biologics License Application (sBLA) for Epkinly
(epcoritamab), for the treatment of adult relapsed or refractory
(R/R) follicular lymphoma (FL) after two or more lines of therapy.
If approved, Epkinly will be the only subcutaneous bispecific
antibody to treat adults with R/R FL after two lines of prior
therapy, marking its second indication following FDA and European
Medicines Agency (EMA) approval of R/R third-line diffuse large
B-cell lymphoma (DLBCL) treatment. The FDA had previously granted
this investigational indication Breakthrough Therapy Designation
(BTD). The sBLA is supported by data from the Phase 1/2 EPCORE
NHL-1 clinical trial. Epkinly is being co-developed by AbbVie and
Genmab.
- AbbVie announced positive top-line results from the Phase 3
SELECT-GCA study, showing Rinvoq (upadacitinib, 15 mg, once daily)
in combination with a 26-week steroid taper regimen achieved its
primary endpoint of sustained remission from week 12 through week
52 in adults with giant cell arteritis (GCA). In this study, 46
percent of patients receiving Rinvoq in combination with a 26-week
steroid taper regimen achieved sustained remission compared to 29
percent of patients receiving placebo in combination with a 52-week
steroid taper regimen. Rinvoq's safety profile in GCA was generally
consistent with that in approved indications, and no new safety
signals were identified.
- AbbVie announced positive topline results from the Phase
3b/4 LEVEL UP study, that evaluated
the efficacy and safety of Rinvoq (15 mg, once daily starting dose
and dose-adjusted based on clinical response) versus Dupixent
(dupilumab) in adults and adolescents with moderate to severe
atopic dermatitis (AD) who had inadequate response to systemic
therapy or when use of those therapies was inadvisable. Rinvoq
demonstrated superiority versus Dupixent in the primary endpoint of
simultaneous achievement of near complete skin clearance (Eczema
Area and Severity Index 90) and no to little itch (Worst Pruritus
Numerical Rating Scale of 0 or 1) at Week 16. Rinvoq also showed
superiority versus Dupixent for all ranked secondary endpoints,
including the rapid onset of achieving near complete skin clearance
and no to little itch. The safety profile of Rinvoq was consistent
with the profile in previous AD studies with no new safety signals
identified during the 16-week period.
- At the Congress of European Crohn's and Colitis Organisation
(ECCO), AbbVie presented 17 abstracts, including nine oral
presentations and eight posters, from a range of studies across its
inflammatory bowel disease (IBD) portfolio. Oral presentations
included new post-hoc analysis of clinical and endoscopic outcomes
from the Phase 3 SEQUENCE trial comparing Skyrizi (risankizumab)
versus Stelara (ustekinumab) in patients with moderate to severe
Crohn's disease (CD), results from the Phase 3 COMMAND study of
Skyrizi as a maintenance therapy in adult patients with moderately
to severely active ulcerative colitis (UC), and long-term safety
results from the Phase 3 U-ENDURE trial of Rinvoq in adult patients
with moderately to severely active CD. Skyrizi is part of a
collaboration between Boehringer Ingelheim and AbbVie, with AbbVie
leading development and commercialization globally.
- At the 2024 American Academy of Dermatology (AAD) Annual
Meeting, AbbVie presented 29 abstracts including three
late-breaking presentations. The presented data across AbbVie and
Allergan Aesthetics' extensive portfolios reinforce the companies'
ongoing commitment to developing transformative medical dermatology
and aesthetic treatments to advance and redefine the standard of
care for patients.
- Allergan Aesthetics announced the FDA approval of Juvederm
Voluma XC for injection in the temple region to improve moderate to
severe temple hollowing in adults over the age of 21. Juvederm
Voluma XC is the first and only hyaluronic acid (HA) dermal filler
to receive FDA approval for the improvement of moderate to severe
temple hollowing with results lasting up to 13 months with optimal
treatment.
- At the American Academy of Neurology (AAN) Annual Meeting,
AbbVie announced an interim analysis of an ongoing 156-week
extension study that supports the long-term safety, tolerability
and efficacy of Qulipta (atogepant) to prevent chronic and episodic
migraine. The overall long-term safety results were consistent with
the known safety profile of Qulipta in chronic and episodic
migraine, and no new safety signals were identified. These results
also support improvements in key efficacy outcomes, including
reduction in monthly acute medication use days.
- AbbVie and Landos Biopharma announced a definitive agreement
under which AbbVie will acquire Landos, a clinical stage
biopharmaceutical company focused on the development of novel, oral
therapeutics for patients with autoimmune diseases. Landos' lead
investigational asset is NX-13, a first-in-class, oral NLRX1
agonist in Phase 2 for the treatment of UC.
- AbbVie and OSE Immunotherapeutics, a clinical-stage
immunotherapy company, announced a strategic partnership to develop
OSE-230, a monoclonal antibody designed to resolve chronic and
severe inflammation, currently in the pre-clinical development
stage.
- AbbVie and Tentarix Biotherapeutics announced a multi-year
collaboration focused on the discovery and development of
conditionally-active, multi-specific biologic candidates in
oncology and immunology. The collaboration will leverage AbbVie's
therapeutic area expertise and Tentarix's Tentacles platform.
Full-Year 2024 Outlook
AbbVie is raising its adjusted diluted EPS guidance for the full
year 2024 from $10.97 - $11.17
to $11.13 - $11.33, which includes an unfavorable impact of
$0.08 per share related to acquired
IPR&D and milestones expense incurred during the first quarter
2024. The company's 2024 adjusted diluted EPS guidance excludes any
impact from acquired IPR&D and milestones that may be incurred
beyond the first quarter of 2024, as both cannot be reliably
forecasted.
About AbbVie
AbbVie's mission is to discover and deliver innovative medicines
that solve serious health issues today and address the medical
challenges of tomorrow. We strive to have a remarkable impact on
people's lives across several key therapeutic areas: immunology,
oncology, neuroscience and eye care - and products and services
across our Allergan Aesthetics portfolio. For more information
about AbbVie, please visit us at www.abbvie.com. Follow @abbvie on
X (formerly Twitter), Facebook, Instagram, YouTube or
LinkedIn.
Conference Call
AbbVie will host an investor conference call today at
8:00 a.m. Central Time to discuss our
first-quarter performance. The call will be webcast through
AbbVie's Investor Relations website at investors.abbvie.com. An
archived edition of the call will be available after 11:00 a.m. Central Time.
Non-GAAP Financial Results
Financial results for 2024 and 2023 are presented on both a
reported and a non-GAAP basis. Reported results were prepared in
accordance with GAAP and include all revenue and expenses
recognized during the period. Non-GAAP results adjust for certain
non-cash items and for factors that are unusual or unpredictable,
and exclude those costs, expenses, and other specified items
presented in the reconciliation tables later in this release.
AbbVie's management believes non-GAAP financial measures provide
useful information to investors regarding AbbVie's results of
operations and assist management, analysts, and investors in
evaluating the performance of the business. Non-GAAP financial
measures should be considered in addition to, and not as a
substitute for, measures of financial performance prepared in
accordance with GAAP.
Forward-Looking Statements
Some statements in this news release are, or may be considered,
forward-looking statements for purposes of the Private Securities
Litigation Reform Act of 1995. The words "believe," "expect,"
"anticipate," "project" and similar expressions and uses of future
or conditional verbs, generally identify forward-looking
statements. AbbVie cautions that these forward-looking statements
are subject to risks and uncertainties that may cause actual
results to differ materially from those expressed or implied in the
forward-looking statements. Such risks and uncertainties include,
but are not limited to, risks related to the proposed acquisition
of Cerevel Therapeutics, including the possibility that the
acquisition may not be consummated on the anticipated timeframe or
at all, risks related to the ability to realize the anticipated
benefits of the proposed acquisition on the anticipated timeframe
or at all, risks that the costs to consummate the proposed
acquisition or to obtain the anticipated benefits of the proposed
acquisition could be greater than expected, the risk that an event
occurs that could give rise to the right of AbbVie, on the one
hand, or Cerevel Therapeutics, on the other hand, to terminate the
acquisition agreement for such transaction, the risk that the
business will not be integrated successfully, disruption from the
proposed acquisition making it more difficult to maintain business
and operational relationships, the diversion of management's
attention from ongoing business operations and opportunities,
negative effects of the consummation of the proposed acquisition on
business or employee relationships or the market price of the
Company's common stock and/or operating results, significant
transaction costs, the assumption of unknown liabilities, the risk
of litigation and/or regulatory actions related to the proposed
acquisition of Cerevel Therapeutics's business, risks related to
the financing of the proposed acquisition, challenges to
intellectual property, competition from other products,
difficulties inherent in the research and development process,
adverse litigation or government action, and changes to laws and
regulations applicable to our industry. Additional information
about the economic, competitive, governmental, technological and
other factors that may affect AbbVie's and Cerevel Therapeutics's
operations is set forth in Item 1A, "Risk Factors," of AbbVie's
2023 Annual Report on Form 10-K, which has been filed with the
Securities and Exchange Commission, as updated by its Quarterly
Reports on Form 10-Q and in other documents that AbbVie
subsequently files with the Securities and Exchange Commission that
update, supplement or supersede such information; Item 1A, "Risk
Factors," of Cerevel Therapeutics's 2023 Annual Report on Form
10-K, which has been filed with the Securities and Exchange
Commission, as updated by its Quarterly Reports on Form 10-Q and in
other documents that Cerevel Therapeutics subsequently files with
the Securities and Exchange Commission that update, supplement or
supersede such information. AbbVie undertakes no obligation, and
specifically declines, to release publicly any revisions to
forward-looking statements as a result of subsequent events or
developments, except as required by law.
AbbVie
Inc.
Key Product
Revenues
Quarter Ended March
31, 2024
(Unaudited)
|
|
|
|
|
|
|
|
|
% Change vs.
1Q23
|
|
Net Revenues (in
millions)
|
|
Reported
|
|
Operationala
|
|
U.S.
|
|
Int'l.
|
|
Total
|
|
U.S.
|
|
Int'l.
|
|
Total
|
|
Int'l.
|
|
Total
|
NET
REVENUES
|
$9,041
|
|
$3,269
|
|
$12,310
|
|
(1.7) %
|
|
8.1 %
|
|
0.7 %
|
|
11.6 %
|
|
1.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Immunology
|
4,152
|
|
1,219
|
|
5,371
|
|
(8.5)
|
|
16.0
|
|
(3.9)
|
|
20.5
|
|
(3.1)
|
Humira
|
1,771
|
|
499
|
|
2,270
|
|
(39.9)
|
|
(15.8)
|
|
(35.9)
|
|
(11.6)
|
|
(35.2)
|
Skyrizi
|
1,656
|
|
352
|
|
2,008
|
|
45.3
|
|
59.4
|
|
47.6
|
|
61.6
|
|
48.0
|
Rinvoq
|
725
|
|
368
|
|
1,093
|
|
61.4
|
|
55.3
|
|
59.3
|
|
62.8
|
|
61.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oncology
|
967
|
|
576
|
|
1,543
|
|
7.3
|
|
12.1
|
|
9.0
|
|
14.3
|
|
9.8
|
Imbruvicab
|
610
|
|
228
|
|
838
|
|
(4.3)
|
|
(5.1)
|
|
(4.5)
|
|
(5.1)
|
|
(4.5)
|
Venclexta
|
281
|
|
333
|
|
614
|
|
6.2
|
|
21.9
|
|
14.2
|
|
26.1
|
|
16.3
|
Elaherec
|
64
|
|
—
|
|
64
|
|
n/m
|
|
n/m
|
|
n/m
|
|
n/m
|
|
n/m
|
Epkinlyd
|
12
|
|
15
|
|
27
|
|
n/m
|
|
n/m
|
|
n/m
|
|
n/m
|
|
n/m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aesthetics
|
776
|
|
473
|
|
1,249
|
|
(0.3)
|
|
(9.4)
|
|
(4.0)
|
|
(5.5)
|
|
(2.5)
|
Botox
Cosmetic
|
389
|
|
244
|
|
633
|
|
(4.9)
|
|
(2.2)
|
|
(3.9)
|
|
1.2
|
|
(2.6)
|
Juvederm
Collection
|
106
|
|
191
|
|
297
|
|
(13.2)
|
|
(18.1)
|
|
(16.4)
|
|
(14.0)
|
|
(13.7)
|
Other
Aesthetics
|
281
|
|
38
|
|
319
|
|
13.7
|
|
(3.7)
|
|
11.3
|
|
1.2
|
|
12.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Neuroscience
|
1,714
|
|
251
|
|
1,965
|
|
17.1
|
|
7.9
|
|
15.9
|
|
8.9
|
|
16.0
|
Botox
Therapeutic
|
611
|
|
137
|
|
748
|
|
4.1
|
|
3.9
|
|
4.1
|
|
6.3
|
|
4.5
|
Vraylar
|
692
|
|
2
|
|
694
|
|
23.5
|
|
>100.0
|
|
23.6
|
|
>100.0
|
|
23.6
|
Duodopa
|
25
|
|
90
|
|
115
|
|
(2.6)
|
|
(2.7)
|
|
(2.7)
|
|
(3.7)
|
|
(3.5)
|
Ubrelvy
|
197
|
|
6
|
|
203
|
|
31.5
|
|
>100.0
|
|
33.8
|
|
>100.0
|
|
33.8
|
Qulipta
|
128
|
|
3
|
|
131
|
|
94.5
|
|
>100.0
|
|
97.7
|
|
>100.0
|
|
97.7
|
Other
Neuroscience
|
61
|
|
13
|
|
74
|
|
(18.5)
|
|
>100.0
|
|
(6.9)
|
|
>100.0
|
|
(6.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eye
Care
|
227
|
|
311
|
|
538
|
|
(29.2)
|
|
7.6
|
|
(11.7)
|
|
10.3
|
|
(10.4)
|
Ozurdex
|
34
|
|
97
|
|
131
|
|
(13.7)
|
|
27.9
|
|
13.7
|
|
29.3
|
|
14.6
|
Lumigan/Ganfort
|
29
|
|
62
|
|
91
|
|
(55.0)
|
|
(7.6)
|
|
(30.5)
|
|
(6.4)
|
|
(29.9)
|
Alphagan/Combigan
|
15
|
|
44
|
|
59
|
|
(47.0)
|
|
1.9
|
|
(17.7)
|
|
6.9
|
|
(14.7)
|
Restasis
|
44
|
|
13
|
|
57
|
|
(44.1)
|
|
(1.4)
|
|
(38.1)
|
|
4.1
|
|
(37.3)
|
Other Eye
Care
|
105
|
|
95
|
|
200
|
|
(4.8)
|
|
5.9
|
|
—
|
|
9.3
|
|
1.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Key
Products
|
686
|
|
214
|
|
900
|
|
(5.6)
|
|
6.3
|
|
(3.0)
|
|
8.8
|
|
(2.4)
|
Mavyret
|
144
|
|
205
|
|
349
|
|
(15.8)
|
|
6.2
|
|
(4.1)
|
|
9.0
|
|
(2.6)
|
Creon
|
285
|
|
—
|
|
285
|
|
(6.6)
|
|
n/m
|
|
(6.6)
|
|
n/m
|
|
(6.6)
|
Linzess/Constella
|
257
|
|
9
|
|
266
|
|
2.5
|
|
9.2
|
|
2.8
|
|
6.8
|
|
2.7
|
|
|
a
|
"Operational"
comparisons are presented at constant currency rates that reflect
comparative local currency net revenues at the
prior year's foreign exchange rates.
|
b
|
Reflects profit sharing
for Imbruvica international revenues.
|
c
|
Reflects partial
quarter Elahere revenue based on the February 12, 2024 close
date of the ImmunoGen acquisition.
|
d
|
Epkinly U.S. revenues
reflect profit sharing. International revenues reflect product
revenues as well as profit sharing from certain
international territories.
|
n/m = not
meaningful
|
AbbVie
Inc.
Consolidated
Statements of Earnings
(Unaudited)
|
|
(in millions, except
per share data)
|
First
Quarter
Ended March
31
|
|
2024
|
|
2023
|
Net revenues
|
$
12,310
|
|
$
12,225
|
Cost of products
sold
|
4,094
|
|
3,986
|
Selling, general and
administrative
|
3,315
|
|
3,039
|
Research and
development
|
1,939
|
|
2,292
|
Acquired IPR&D and
milestones
|
164
|
|
150
|
Other operating
income
|
—
|
|
(10)
|
Total operating costs
and expenses
|
9,512
|
|
9,457
|
|
|
|
|
Operating
earnings
|
2,798
|
|
2,768
|
|
|
|
|
Interest expense,
net
|
453
|
|
454
|
Net foreign exchange
loss
|
4
|
|
35
|
Other expense,
net
|
586
|
|
1,804
|
Earnings before income
tax expense
|
1,755
|
|
475
|
Income tax
expense
|
383
|
|
234
|
Net earnings
|
1,372
|
|
241
|
Net earnings
attributable to noncontrolling interest
|
3
|
|
2
|
Net earnings
attributable to AbbVie Inc.
|
$
1,369
|
|
$
239
|
|
|
|
|
Diluted earnings per
share attributable to AbbVie Inc.
|
$
0.77
|
|
$
0.13
|
|
|
|
|
Adjusted diluted
earnings per sharea
|
$
2.31
|
|
$
2.46
|
|
|
|
|
Weighted-average
diluted shares outstanding
|
1,773
|
|
1,776
|
|
|
a
|
Refer to the
Reconciliation of GAAP Reported to Non-GAAP Adjusted Information
for further details.
|
AbbVie
Inc.
Reconciliation of
GAAP Reported to Non-GAAP Adjusted Information
(Unaudited)
|
|
1. Specified items impacted
results as follows:
|
|
|
Quarter Ended March
31, 2024
|
(in millions, except
per share data)
|
Earnings
|
|
Diluted
|
|
Pre-tax
|
|
After-taxa
|
|
EPS
|
As reported
(GAAP)
|
$
1,755
|
|
$
1,369
|
|
$
0.77
|
Adjusted for specified
items:
|
|
|
|
|
|
Intangible asset
amortization
|
1,891
|
|
1,603
|
|
0.90
|
Acquisition and
integration costs
|
511
|
|
486
|
|
0.27
|
Change in fair value
of contingent consideration
|
660
|
|
643
|
|
0.36
|
Other
|
21
|
|
19
|
|
0.01
|
As adjusted
(non-GAAP)
|
$
4,838
|
|
$
4,120
|
|
$
2.31
|
|
a
Represents net earnings attributable
to AbbVie Inc.
|
|
Acquisition and
integration costs primarily reflect costs related to the ImmunoGen
acquisition.
|
|
Reported GAAP earnings
and adjusted non-GAAP earnings for the three months ended March 31,
2024 included acquired IPR&D
and milestones expense of $164 million on a pre-tax and $138
million on an after-tax basis, representing an unfavorable impact
of
$0.08 to both diluted EPS and adjusted diluted EPS.
|
|
2. The impact of the
specified items by line item was as follows:
|
|
|
Quarter Ended March
31, 2024
|
(in
millions)
|
Cost of
products
sold
|
|
SG&A
|
|
R&D
|
|
Interest
expense,
net
|
|
Other
expense,
net
|
As reported
(GAAP)
|
$
4,094
|
|
$
3,315
|
|
$
1,939
|
|
$
453
|
|
$
586
|
Adjusted for specified
items:
|
|
|
|
|
|
|
|
|
|
Intangible asset
amortization
|
(1,891)
|
|
—
|
|
—
|
|
—
|
|
—
|
Acquisition and
integration costs
|
(79)
|
|
(280)
|
|
(128)
|
|
(24)
|
|
—
|
Change in fair value
of contingent
consideration
|
—
|
|
—
|
|
—
|
|
—
|
|
(660)
|
Other
|
(16)
|
|
(3)
|
|
—
|
|
—
|
|
(2)
|
As adjusted
(non-GAAP)
|
$
2,108
|
|
$
3,032
|
|
$
1,811
|
|
$
429
|
|
$
(76)
|
|
3. The adjusted tax rate for
the first quarter of 2024 was 14.8 percent, as detailed
below:
|
|
|
Quarter Ended March
31, 2024
|
(dollars in
millions)
|
Pre-tax
earnings
|
|
Income taxes
|
|
Tax rate
|
As reported
(GAAP)
|
$
1,755
|
|
$
383
|
|
21.8 %
|
Specified
items
|
3,083
|
|
332
|
|
10.8 %
|
As adjusted
(non-GAAP)
|
$
4,838
|
|
$
715
|
|
14.8 %
|
AbbVie
Inc.
Reconciliation of
GAAP Reported to Non-GAAP Adjusted Information
(Unaudited)
|
|
1. Specified items impacted
results as follows:
|
|
|
Quarter Ended March
31, 2023
|
(in millions, except
per share data)
|
Earnings
|
|
Diluted
|
|
Pre-tax
|
|
After-taxa
|
|
EPS
|
As reported
(GAAP)
|
$
475
|
|
$
239
|
|
$
0.13
|
Adjusted for specified
items:
|
|
|
|
|
|
Intangible asset
amortization
|
1,948
|
|
1,646
|
|
0.93
|
Intangible asset
impairment
|
710
|
|
629
|
|
0.35
|
Acquisition and
integration costs
|
61
|
|
55
|
|
0.03
|
Change in fair value
of contingent consideration
|
1,872
|
|
1,822
|
|
1.02
|
Other
|
17
|
|
(6)
|
|
—
|
As adjusted
(non-GAAP)
|
$
5,083
|
|
$
4,385
|
|
$
2.46
|
|
a
Represents net earnings attributable to AbbVie
Inc.
|
|
Acquisition and
integration costs reflect integration costs related to the Allergan
acquisition.
|
|
Reported GAAP earnings
and adjusted non-GAAP earnings for the three months ended March 31,
2023 included acquired IPR&D
and milestones expense of $150 million on a pre-tax and after-tax
basis, representing an unfavorable impact of $0.08 to both
diluted
EPS and adjusted diluted EPS.
|
|
2. The impact of the
specified items by line item was as follows:
|
|
|
Quarter Ended March
31, 2023
|
(in
millions)
|
Cost of
products
sold
|
|
SG&A
|
|
R&D
|
|
Other
operating
income
|
|
Other
expense,
net
|
As reported
(GAAP)
|
$ 3,986
|
|
$ 3,039
|
|
$ 2,292
|
|
$
(10)
|
|
$ 1,804
|
Adjusted for specified
items:
|
|
|
|
|
|
|
|
|
|
Intangible asset
amortization
|
(1,948)
|
|
—
|
|
—
|
|
—
|
|
—
|
Intangible asset
impairment
|
(80)
|
|
—
|
|
(630)
|
|
—
|
|
|
Acquisition and
integration costs
|
(15)
|
|
(44)
|
|
(2)
|
|
—
|
|
—
|
Change in fair value
of contingent consideration
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,872)
|
Other
|
(12)
|
|
(11)
|
|
(3)
|
|
10
|
|
(1)
|
As adjusted
(non-GAAP)
|
$ 1,931
|
|
$ 2,984
|
|
$ 1,657
|
|
$
—
|
|
$
(69)
|
|
3. The adjusted tax rate for
the first quarter of 2023 was 13.7 percent, as detailed
below:
|
|
|
Quarter Ended March
31, 2023
|
(dollars in
millions)
|
Pre-tax
earnings
|
|
Income taxes
|
|
Tax rate
|
As reported
(GAAP)
|
$
475
|
|
$
234
|
|
49.3 %
|
Specified
items
|
4,608
|
|
462
|
|
10.0 %
|
As adjusted
(non-GAAP)
|
$
5,083
|
|
$
696
|
|
13.7 %
|
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SOURCE AbbVie