- Reports Full-Year Diluted EPS of $2.72 on a GAAP Basis, a Decrease of 59.0
Percent; Adjusted Diluted EPS of $11.11, a Decrease of 19.3 Percent; These Results
Include an Unfavorable Impact of $0.42 Per Share Related to 2023 Acquired
IPR&D and Milestones Expense
- Delivers Full-Year Net Revenues of $54.318 Billion, a Decrease of 6.4 Percent on a
Reported Basis and 5.9 Percent on an Operational Basis
- Full-Year Global Net Revenues from the Immunology Portfolio
Were $26.136 Billion, a Decrease of
9.6 Percent on a Reported Basis, or 9.2 Percent on an Operational
Basis, Due to Humira Biosimilar Competition; Global Humira Net
Revenues Were $14.404 billion; Global
Skyrizi Net Revenues Were $7.763
Billion; Global Rinvoq Net Revenues Were $3.969 Billion
- Full-Year Global Net Revenues from the Oncology Portfolio
Were $5.915 Billion, a Decrease of
10.1 Percent on a Reported Basis, or 9.8 Percent on an Operational
Basis; Global Imbruvica Net Revenues Were $3.596 Billion; Global Venclexta Net Revenues
Were $2.288 Billion
- Full-Year Global Net Revenues from the Neuroscience
Portfolio Were $7.717 Billion, an
Increase of 18.2 Percent on a Reported Basis, or 18.5 Percent on an
Operational Basis; Global Botox Therapeutic Net Revenues Were
$2.991 Billion; Global Vraylar Net
Revenues Were $2.759 Billion;
Combined Global Ubrelvy and Qulipta Net Revenues were $1.223 Billion
- Full-Year Global Net Revenues from the Aesthetics Portfolio
Were $5.294 Billion, a Decrease of
0.8 Percent on a Reported Basis, or an Increase of 0.9 Percent on
an Operational Basis; Global Botox Cosmetic Net Revenues Were
$2.682 Billion; Global Juvederm Net
Revenues Were $1.378 Billion
- Reports Fourth-Quarter Diluted EPS of $0.46 on a GAAP Basis, a Decrease of 66.7
Percent; Adjusted Diluted EPS of $2.79, a Decrease of 22.5 Percent; These Results
Include an Unfavorable Impact of $0.15 Per Share Related to Fourth-Quarter 2023
Acquired IPR&D and Milestones Expense
- Delivers Fourth-Quarter Net Revenues of $14.301 Billion, a Decrease of 5.4 Percent
- Announced Definitive Transaction Agreements to Acquire
ImmunoGen and Cerevel Therapeutics, Strengthening AbbVie's Oncology
and Neuroscience Portfolios with Highly Complementary Assets
- Provides 2024 Adjusted Diluted EPS Guidance Range of
$11.05 to $11.25; Includes a $0.32 per Share Dilutive Impact Related to the
ImmunoGen and Cerevel Therapeutics Acquisitions, Which Are
Anticipated to Close in Mid-2024; Excludes Any Unfavorable Impact
Related to Acquired IPR&D and Milestones Expense
- Reaffirms Expectations for High Single-Digit Compound Annual
Revenue Growth Rate through 2029; Raises 2027 Combined Sales
Outlook for Skyrizi and Rinvoq to More Than $27 Billion; Raises Peak Sales Outlook for
Ubrelvy and Qulipta to More Than $3
Billion Combined
NORTH CHICAGO, Ill.,
Feb. 2,
2024 /PRNewswire/ -- AbbVie (NYSE:ABBV) announced
financial results for the fourth quarter and full year ended
December 31, 2023.
"2023 was another outstanding year, marked by strong operational
execution and significant overperformance from our non-Humira
growth platform. During the year we meaningfully increased R&D
investment and bolstered our pipeline with the proposed ImmunoGen
and Cerevel Therapeutics acquisitions," said Richard A. Gonzalez, chairman and chief
executive officer, AbbVie. "2024 is an exciting year for AbbVie, as
we are well positioned to fully absorb Humira erosion and achieve
modest operational revenue growth, followed by a return to robust
growth in 2025 and a high single-digit CAGR through the end of the
decade."
Fourth-Quarter Results
- Worldwide net revenues were $14.301
billion, a decrease of 5.4 percent.
- Global net revenues from the immunology portfolio were
$6.953 billion, a decrease of 12.3
percent, due to Humira biosimilar competition.
- Global Humira net revenues of $3.304
billion decreased 40.8 percent on a reported basis, or 40.7
percent on an operational basis. U.S. Humira net revenues were
$2.740 billion, a decrease of 45.3
percent. Internationally, Humira net revenues were $564 million, a decrease of 1.5 percent on a
reported basis, or 1.0 percent on an operational basis.
- Global Skyrizi net revenues were $2.394
billion, an increase of 51.9 percent on a reported basis, or
51.6 percent on an operational basis.
- Global Rinvoq net revenues were $1.255
billion, an increase of 62.9 percent on a reported basis, or
62.8 percent on an operational basis.
- Global net revenues from the oncology portfolio were
$1.509 billion, a decrease of 7.4
percent on a reported basis, or 7.6 percent on an operational
basis.
- Global Imbruvica net revenues were $903
million, a decrease of 19.0 percent, with U.S. net revenues
of $683 million and international
profit sharing of $220 million.
- Global Venclexta net revenues were $589
million, an increase of 14.3 percent on a reported basis, or
13.7 percent on an operational basis.
- Global net revenues from the neuroscience portfolio were
$2.094 billion, an increase of 22.6
percent on a reported basis, or 22.4 percent on an operational
basis.
- Global Botox Therapeutic net revenues were $776 million, an increase of 6.6 percent on a
reported basis, or 6.7 percent on an operational basis.
- Global Vraylar net revenues were $789
million, an increase of 39.8 percent.
- Global Ubrelvy net revenues were $234
million, an increase of 18.9 percent.
- Global Qulipta net revenues were $114
million.
- Global net revenues from the aesthetics portfolio were
$1.371 billion, an increase of 6.4
percent on a reported basis, or 6.9 percent on an operational
basis.
- Global Botox Cosmetic net revenues were $718 million, an increase of 11.8 percent on a
reported basis, or 12.3 percent on an operational basis.
- Global Juvederm net revenues were $334
million, an increase of 3.4 percent on a reported basis, or
3.8 percent on an operational basis.
- On a GAAP basis, the gross margin ratio in the fourth quarter
was 60.1 percent. The adjusted gross margin ratio was 83.9
percent.
- On a GAAP basis, selling, general and administrative (SG&A)
expense was 22.3 percent of net revenues. The adjusted SG&A
expense was 24.7 percent of net revenues.
- On a GAAP basis, research and development (R&D) expense was
13.5 percent of net revenues. The adjusted R&D expense was 13.4
percent of net revenues, reflecting funding actions supporting all
stages of our pipeline.
- Acquired IPR&D and milestones expense was 2.0 percent of
net revenues.
- On a GAAP basis, the operating margin in the fourth quarter was
22.3 percent. The adjusted operating margin was 43.8 percent.
- On a GAAP basis, net interest expense was $378 million. The adjusted net interest expense
was $363 million.
- On a GAAP basis, the tax rate in the quarter was 32.1 percent.
The adjusted tax rate was 17.2 percent.
- Diluted EPS in the fourth quarter was $0.46 on a GAAP basis. Adjusted diluted EPS,
excluding specified items, was $2.79.
These results include an unfavorable impact of $0.15 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 and ImmunoGen announced a definitive agreement under
which AbbVie will acquire ImmunoGen, and its flagship cancer
therapy Elahere (mirvetuximab soravtansine-gynx), a first-in-class
antibody-drug conjugate (ADC) approved for platinum-resistant
ovarian cancer (PROC). The acquisition accelerates AbbVie's entry
into the solid tumor space and enhances AbbVie's oncology pipeline
through the addition of multiple promising next-generation ADCs.
The transaction values ImmunoGen at a total equity value of
approximately $10.1 billion.
Additional information on the transaction can be found at
investors.abbvie.com.
- AbbVie and Cerevel Therapeutics announced a definitive
agreement under which AbbVie will acquire Cerevel Therapeutics and
its robust neuroscience pipeline of multiple clinical-stage and
preclinical candidates with potential across several diseases
including schizophrenia, Parkinson's disease (PD) and mood
disorders. The acquisition complements AbbVie's neuroscience
portfolio, adding a wide range of potentially best-in-class assets
that may transform standards of care across psychiatric and
neurological disorders. The transaction values Cerevel Therapeutics
at a total equity value of approximately $8.7 billion. Additional information on the
transaction can be found at investors.abbvie.com.
- AbbVie announced lutikizumab showed positive results in a Phase
2 trial in adults with moderate to severe hidradenitis suppurativa
(HS) who had previously failed anti-TNF therapy. In the study,
patients who received lutikizumab 300 mg weekly or 300 mg every
other week showed higher response rates in the primary endpoint of
achieving HS clinical response (HiSCR 50) and the secondary
endpoint of skin pain (NRS30) at week 16, than those treated with
placebo. Based on these data, AbbVie will advance its clinical
program of lutikizumab in HS to Phase 3.
- AbbVie announced positive topline results from the Phase 2
LUMINOSITY trial evaluating telisotuzumab-vedotin (Teliso-V) in
patients with c-Met protein overexpression, epidermal growth factor
receptor (EGFR) wild type, advanced/metastatic nonsquamous
non-small cell lung cancer (NSCLC). The results demonstrated a
compelling overall response rate (ORR) per independent central
review of 35 percent and 23 percent across c-Met High and c-Met
Intermediate patients, respectively. Data from the study will be
presented at a future medical meeting and AbbVie will discuss with
global health authorities the potential to support an accelerated
approval.
- AbbVie announced new data for Epkinly (epcoritamab) which
showed strong, durable treatment response for patients with
difficult-to-treat relapsed/refractory (r/r) follicular lymphoma
(FL). Data from the Phase 1/2 EPCORE NHL-1 study showed patients
treated with Epkinly experienced 82% ORR including 63% complete
response (CR) rate. Additionally, the U.S. Food and Drug
Administration (FDA) granted Breakthrough Therapy Designation (BTD)
to Epkinly and the European Medicines Agency (EMA) validated a Type
II application for Tepkinly (epcoritamab) for the treatment of
adult patients with r/r FL after two or more therapies.
Epkinly/Tepkinly is being co-developed by AbbVie and Genmab.
- AbbVie and Umoja Biopharma, an early clinical-stage
biotechnology company, announced two exclusive option and license
agreements to develop multiple in-situ generated CAR-T cell therapy
candidates in oncology using Umoja's proprietary VivoVec platform.
The first agreement provides AbbVie an exclusive option to license
Umoja's CD19 directed in-situ generated CAR-T cell therapy
candidates including UB-VV111, Umoja's lead clinical program for
hematologic malignancies. Under the terms of the second agreement,
AbbVie and Umoja will develop up to four additional in-situ
generated CAR-T cell therapy candidates for discovery targets
selected by AbbVie.
- AbbVie announced the launch of Produodopa
(foslevodopa/foscarbidopa) in the European Union (EU) for the
treatment of advanced PD. Produodopa is the first-and-only
subcutaneous 24-hour infusion of levodopa-based therapy for the
treatment of severe motor fluctuations in people living with
advanced PD whose symptoms are inadequately controlled by other
therapies. In clinical trials, Produodopa demonstrated sustained
improvements in "Off" time (when symptoms return between medication
doses), "On" time (when symptoms are controlled) without dyskinesia
(involuntary movement), and morning akinesia ("Off" time upon
waking).
- AbbVie announced The Lancet published detailed clinical
trial results evaluating the efficacy, safety and tolerability of
Ubrelvy (ubrogepant) 100 mg for the acute treatment of migraine
when administered during the prodrome (i.e., 1-6 hours before the
predicted onset of headache pain) of a migraine attack. The Phase 3
study, PRODROME, showed that Ubrelvy given during the prodrome
significantly reduced the likelihood of development of moderate or
severe headache and reduced functional disability compared to
placebo within 24 hours post-dose. Ubrelvy is the first and only
acute treatment for migraine that has demonstrated data in the
prodrome phase in a Phase 3, double-blind, placebo-controlled
trial.
- AbbVie and BigHat Biosciences announced a research
collaboration to leverage artificial intelligence and machine
learning to discover next-generation therapeutic antibodies.
Working closely with AbbVie, BigHat will utilize its Milliner
platform, a suite of machine learning technologies integrated with
a high-speed wet lab, to guide the design and selection for high
quality antibodies for multiple therapeutic targets.
Full-Year 2024 Outlook
AbbVie is issuing its adjusted diluted EPS guidance for the
full-year 2024 of $11.05 to
$11.25. This guidance includes a
$0.32 per share dilutive impact
related to the proposed ImmunoGen and Cerevel Therapeutics
acquisitions, which are anticipated to close in the middle of 2024.
The company's 2024 adjusted diluted EPS guidance excludes any
impact from acquired IPR&D and milestones that may be incurred
during 2024, as both cannot be reliably forecasted.
Long-Term Outlook
AbbVie is reaffirming its expectations for a high single-digit
compound annual revenue growth rate through 2029. This guidance
assumes 2024 as the base year in the compound annual growth rate
calculation.
AbbVie is raising its long-term outlook for Skyrizi and Rinvoq
revenues. The company now expects combined Skyrizi and Rinvoq 2027
revenues of more than $27 billion, an
increase of approximately $6 billion
compared to previous guidance for combined revenues of more than
$21 billion in 2027.
AbbVie is also raising its long-term outlook for Ubrelvy and
Qulipta revenues. The company now expects peak combined Ubrelvy and
Qulipta revenues of more than $3
billion, an increase of approximately $1 billion compared to previous guidance for peak
revenues of more than $1 billion for
each asset.
Additional detail regarding AbbVie's long-term outlook can be
found in the presentation at investors.abbvie.com.
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
fourth-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 2023 and 2022 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 acquisitions
of ImmunoGen and Cerevel Therapeutics, including the possibility
that either or both of such acquisitions may not be consummated on
the anticipated timeframe or at all, risks related to the ability
to realize the anticipated benefits of the proposed acquisitions on
the anticipated timeframe or at all, risks that the costs to
consummate either or both acquisitions or to obtain the anticipated
benefits of the proposed acquisitions 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 ImmunoGen or Cerevel
Therapeutics, on the other hand, to terminate the acquisition
agreements for such transactions, the risk that the businesses will
not be integrated successfully, disruption from the proposed
acquisitions 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 acquisitions 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
acquisitions or ImmunoGen's or Cerevel Therapeutics's business,
risks related to the financing of the proposed acquisitions,
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,
ImmunoGen's and Cerevel Therapeutics's operations is set forth in
Item 1A, "Risk Factors," of AbbVie's 2022 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 ImmunoGen's 2022 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 ImmunoGen subsequently files with
the Securities and Exchange Commission that update, supplement or
supersede such information; and Item 1A, "Risk Factors," of Cerevel
Therapeutics's 2022 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
December 31, 2023
(Unaudited)
|
|
|
|
|
|
|
|
|
% Change vs.
4Q22
|
|
Net Revenues (in
millions)
|
|
Reported
|
|
Operationala
|
|
U.S.
|
|
Int'l.
|
|
Total
|
|
U.S.
|
|
Int'l.
|
|
Total
|
|
Int'l.
|
|
Total
|
NET
REVENUES
|
$
11,110
|
|
$
3,191
|
|
$
14,301
|
|
(8.9) %
|
|
8.9 %
|
|
(5.4) %
|
|
9.0 %
|
|
(5.4) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Immunology
|
5,774
|
|
1,179
|
|
6,953
|
|
(17.2)
|
|
24.3
|
|
(12.3)
|
|
24.0
|
|
(12.3)
|
Humira
|
2,740
|
|
564
|
|
3,304
|
|
(45.3)
|
|
(1.5)
|
|
(40.8)
|
|
(1.0)
|
|
(40.7)
|
Skyrizi
|
2,105
|
|
289
|
|
2,394
|
|
50.0
|
|
67.5
|
|
51.9
|
|
64.4
|
|
51.6
|
Rinvoq
|
929
|
|
326
|
|
1,255
|
|
63.9
|
|
60.2
|
|
62.9
|
|
59.8
|
|
62.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oncology
|
971
|
|
538
|
|
1,509
|
|
(12.3)
|
|
2.9
|
|
(7.4)
|
|
2.3
|
|
(7.6)
|
Imbruvicab
|
683
|
|
220
|
|
903
|
|
(18.6)
|
|
(20.0)
|
|
(19.0)
|
|
(20.0)
|
|
(19.0)
|
Venclexta
|
276
|
|
313
|
|
589
|
|
3.1
|
|
26.4
|
|
14.3
|
|
25.1
|
|
13.7
|
Epkinlyc
|
12
|
|
5
|
|
17
|
|
n/m
|
|
n/m
|
|
n/m
|
|
n/m
|
|
n/m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aesthetics
|
884
|
|
487
|
|
1,371
|
|
5.7
|
|
7.6
|
|
6.4
|
|
9.0
|
|
6.9
|
Botox
Cosmetic
|
453
|
|
265
|
|
718
|
|
7.3
|
|
20.6
|
|
11.8
|
|
22.0
|
|
12.3
|
Juvederm
Collection
|
156
|
|
178
|
|
334
|
|
20.5
|
|
(8.0)
|
|
3.4
|
|
(7.3)
|
|
3.8
|
Other
Aesthetics
|
275
|
|
44
|
|
319
|
|
(3.3)
|
|
12.6
|
|
(1.5)
|
|
16.9
|
|
(1.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Neuroscience
|
1,861
|
|
233
|
|
2,094
|
|
23.7
|
|
14.7
|
|
22.6
|
|
13.0
|
|
22.4
|
Botox
Therapeutic
|
649
|
|
127
|
|
776
|
|
5.7
|
|
11.5
|
|
6.6
|
|
11.9
|
|
6.7
|
Vraylar
|
788
|
|
1
|
|
789
|
|
39.6
|
|
>100.0
|
|
39.8
|
|
>100.0
|
|
39.8
|
Duodopa
|
23
|
|
92
|
|
115
|
|
3.8
|
|
9.0
|
|
7.9
|
|
4.2
|
|
4.1
|
Ubrelvy
|
229
|
|
5
|
|
234
|
|
16.9
|
|
>100.0
|
|
18.9
|
|
>100.0
|
|
18.9
|
Qulipta
|
113
|
|
1
|
|
114
|
|
>100.0
|
|
>100.0
|
|
>100.0
|
|
>100.0
|
|
>100.0
|
Other
Neuroscience
|
59
|
|
7
|
|
66
|
|
4.2
|
|
61.7
|
|
8.5
|
|
62.5
|
|
8.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eye
Care
|
314
|
|
271
|
|
585
|
|
(6.9)
|
|
7.2
|
|
(0.9)
|
|
6.7
|
|
(1.1)
|
Ozurdex
|
36
|
|
82
|
|
118
|
|
3.0
|
|
17.0
|
|
12.3
|
|
15.4
|
|
11.3
|
Lumigan/Ganfort
|
31
|
|
61
|
|
92
|
|
(44.1)
|
|
(9.9)
|
|
(25.5)
|
|
(11.9)
|
|
(26.6)
|
Alphagan/Combigan
|
31
|
|
35
|
|
66
|
|
(26.8)
|
|
7.2
|
|
(11.7)
|
|
9.8
|
|
(10.5)
|
Restasis
|
117
|
|
11
|
|
128
|
|
13.5
|
|
44.7
|
|
15.6
|
|
51.4
|
|
16.1
|
Other Eye
Care
|
99
|
|
82
|
|
181
|
|
(2.5)
|
|
9.7
|
|
2.6
|
|
9.3
|
|
2.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Key
Products
|
778
|
|
190
|
|
968
|
|
(1.5)
|
|
(2.3)
|
|
(1.7)
|
|
(1.0)
|
|
(1.4)
|
Mavyret
|
128
|
|
181
|
|
309
|
|
(33.5)
|
|
(3.0)
|
|
(18.5)
|
|
(1.5)
|
|
(17.8)
|
Creon
|
376
|
|
—
|
|
376
|
|
11.5
|
|
n/a
|
|
11.5
|
|
n/a
|
|
11.5
|
Linzess/Constella
|
274
|
|
9
|
|
283
|
|
5.4
|
|
14.1
|
|
5.6
|
|
10.9
|
|
5.5
|
|
|
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
|
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.
Key Product
Revenues
Twelve Months Ended
December 31, 2023
(Unaudited)
|
|
|
|
|
|
|
|
|
% Change vs.
12M22
|
|
Net Revenues (in millions)
|
|
Reported
|
|
Operationala
|
|
U.S.
|
|
Int'l.
|
|
Total
|
|
U.S.
|
|
Int'l.
|
|
Total
|
|
Int'l.
|
|
Total
|
NET
REVENUES
|
$
41,883
|
|
$
12,435
|
|
$
54,318
|
|
(8.4) %
|
|
0.8 %
|
|
(6.4) %
|
|
3.4 %
|
|
(5.9) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Immunology
|
21,737
|
|
4,399
|
|
26,136
|
|
(12.7)
|
|
9.2
|
|
(9.6)
|
|
11.8
|
|
(9.2)
|
Humira
|
12,160
|
|
2,244
|
|
14,404
|
|
(34.7)
|
|
(14.3)
|
|
(32.2)
|
|
(11.8)
|
|
(31.9)
|
Skyrizi
|
6,753
|
|
1,010
|
|
7,763
|
|
50.6
|
|
48.3
|
|
50.3
|
|
50.3
|
|
50.6
|
Rinvoq
|
2,824
|
|
1,145
|
|
3,969
|
|
57.4
|
|
57.3
|
|
57.4
|
|
60.7
|
|
58.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oncology
|
3,778
|
|
2,137
|
|
5,915
|
|
(14.8)
|
|
(0.3)
|
|
(10.1)
|
|
0.7
|
|
(9.8)
|
Imbruvicab
|
2,665
|
|
931
|
|
3,596
|
|
(22.2)
|
|
(18.5)
|
|
(21.3)
|
|
(18.5)
|
|
(21.3)
|
Venclexta
|
1,087
|
|
1,201
|
|
2,288
|
|
7.8
|
|
20.1
|
|
13.9
|
|
22.3
|
|
15.0
|
Epkinlyc
|
26
|
|
5
|
|
31
|
|
n/m
|
|
n/m
|
|
n/m
|
|
n/m
|
|
n/m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aesthetics
|
3,249
|
|
2,045
|
|
5,294
|
|
(2.3)
|
|
1.7
|
|
(0.8)
|
|
6.1
|
|
0.9
|
Botox
Cosmetic
|
1,670
|
|
1,012
|
|
2,682
|
|
1.0
|
|
5.3
|
|
2.6
|
|
9.7
|
|
4.2
|
Juvederm
Collection
|
519
|
|
859
|
|
1,378
|
|
(5.4)
|
|
(2.4)
|
|
(3.6)
|
|
1.9
|
|
(0.9)
|
Other
Aesthetics
|
1,060
|
|
174
|
|
1,234
|
|
(5.6)
|
|
3.3
|
|
(4.4)
|
|
8.1
|
|
(3.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Neuroscience
|
6,790
|
|
927
|
|
7,717
|
|
19.5
|
|
9.5
|
|
18.2
|
|
11.9
|
|
18.5
|
Botox
Therapeutic
|
2,476
|
|
515
|
|
2,991
|
|
9.8
|
|
11.1
|
|
10.0
|
|
15.5
|
|
10.8
|
Vraylar
|
2,755
|
|
4
|
|
2,759
|
|
35.2
|
|
>100.0
|
|
35.4
|
|
>100.0
|
|
35.4
|
Duodopa
|
97
|
|
371
|
|
468
|
|
3.0
|
|
2.1
|
|
2.3
|
|
1.8
|
|
2.1
|
Ubrelvy
|
803
|
|
12
|
|
815
|
|
18.2
|
|
>100.0
|
|
19.9
|
|
>100.0
|
|
19.9
|
Qulipta
|
405
|
|
3
|
|
408
|
|
>100.0
|
|
>100.0
|
|
>100.0
|
|
>100.0
|
|
>100.0
|
Other
Neuroscience
|
254
|
|
22
|
|
276
|
|
(44.4)
|
|
20.2
|
|
(41.9)
|
|
24.4
|
|
(41.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eye
Care
|
1,252
|
|
1,163
|
|
2,415
|
|
(21.8)
|
|
5.9
|
|
(10.6)
|
|
8.5
|
|
(9.5)
|
Ozurdex
|
143
|
|
329
|
|
472
|
|
2.7
|
|
14.0
|
|
10.3
|
|
15.9
|
|
11.6
|
Lumigan/Ganfort
|
173
|
|
259
|
|
432
|
|
(28.4)
|
|
(4.8)
|
|
(15.9)
|
|
(3.6)
|
|
(15.3)
|
Alphagan/Combigan
|
121
|
|
151
|
|
272
|
|
(40.1)
|
|
4.9
|
|
(21.4)
|
|
10.4
|
|
(19.1)
|
Restasis
|
382
|
|
54
|
|
436
|
|
(38.5)
|
|
19.3
|
|
(34.6)
|
|
25.3
|
|
(34.2)
|
Other Eye
Care
|
433
|
|
370
|
|
803
|
|
9.0
|
|
6.1
|
|
7.6
|
|
8.7
|
|
8.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Key
Products
|
3,000
|
|
806
|
|
3,806
|
|
(1.2)
|
|
(1.4)
|
|
(1.2)
|
|
1.4
|
|
(0.6)
|
Mavyret
|
659
|
|
771
|
|
1,430
|
|
(12.7)
|
|
(1.9)
|
|
(7.2)
|
|
1.0
|
|
(5.7)
|
Creon
|
1,268
|
|
—
|
|
1,268
|
|
(0.8)
|
|
n/a
|
|
(0.8)
|
|
n/a
|
|
(0.8)
|
Linzess/Constella
|
1,073
|
|
35
|
|
1,108
|
|
7.1
|
|
8.8
|
|
7.1
|
|
9.7
|
|
7.1
|
|
|
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
|
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)
|
Fourth
Quarter
Ended December
31
|
|
Twelve
Months
Ended December
31
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net revenues
|
$
14,301
|
|
$
15,121
|
|
$
54,318
|
|
$
58,054
|
Cost of products
sold
|
5,704
|
|
4,170
|
|
20,415
|
|
17,414
|
Selling, general and
administrative
|
3,193
|
|
3,417
|
|
12,872
|
|
15,260
|
Research and
development
|
1,927
|
|
1,790
|
|
7,675
|
|
6,510
|
Acquired IPR&D and
milestones
|
282
|
|
243
|
|
778
|
|
697
|
Other operating expense
(income), net
|
—
|
|
(1)
|
|
(179)
|
|
56
|
Total operating costs
and expenses
|
11,106
|
|
9,619
|
|
41,561
|
|
39,937
|
|
|
|
|
|
|
|
|
Operating
earnings
|
3,195
|
|
5,502
|
|
12,757
|
|
18,117
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
378
|
|
476
|
|
1,684
|
|
2,044
|
Net foreign exchange
loss
|
49
|
|
40
|
|
146
|
|
148
|
Other expense,
net
|
1,556
|
|
2,021
|
|
4,677
|
|
2,448
|
Earnings before income
tax expense
|
1,212
|
|
2,965
|
|
6,250
|
|
13,477
|
Income tax
expense
|
388
|
|
493
|
|
1,377
|
|
1,632
|
Net earnings
|
824
|
|
2,472
|
|
4,873
|
|
11,845
|
Net earnings (loss)
attributable to noncontrolling interest
|
2
|
|
(1)
|
|
10
|
|
9
|
Net earnings
attributable to AbbVie Inc.
|
$
822
|
|
$
2,473
|
|
$
4,863
|
|
$
11,836
|
|
|
|
|
|
|
|
|
Diluted earnings per
share attributable to AbbVie Inc.
|
$
0.46
|
|
$
1.38
|
|
$
2.72
|
|
$
6.63
|
|
|
|
|
|
|
|
|
Adjusted diluted
earnings per sharea
|
$
2.79
|
|
$
3.60
|
|
$
11.11
|
|
$
13.77
|
|
|
|
|
|
|
|
|
Weighted-average
diluted shares outstanding
|
1,772
|
|
1,778
|
|
1,773
|
|
1,778
|
|
|
a
|
Refer to the
Reconciliation of GAAP Reported to Non-GAAP Adjusted Information
for further details. Weighted-average
diluted shares outstanding includes the effect of dilutive
securities.
|
AbbVie
Inc.
Reconciliation of
GAAP Reported to Non-GAAP Adjusted Information
(Unaudited)
|
|
1. Specified items impacted
results as follows:
|
|
|
Quarter Ended
December 31, 2023
|
(in millions, except
per share data)
|
Earnings
|
|
Diluted
|
|
Pre-tax
|
|
After-taxa
|
|
EPS
|
As reported
(GAAP)
|
$
1,212
|
|
$
822
|
|
$
0.46
|
Adjusted for specified
items:
|
|
|
|
|
|
Intangible asset
amortization
|
1,889
|
|
1,584
|
|
0.89
|
Intangible asset
impairment
|
1,405
|
|
1,166
|
|
0.66
|
Acquisition and
integration costs
|
123
|
|
107
|
|
0.06
|
Change in fair value
of contingent consideration
|
1,696
|
|
1,655
|
|
0.93
|
Litigation
matters
|
(491)
|
|
(386)
|
|
(0.22)
|
Other
|
156
|
|
11
|
|
0.01
|
As adjusted
(non-GAAP)
|
$
5,990
|
|
$
4,959
|
|
$
2.79
|
|
a Represents net earnings
attributable to AbbVie Inc.
|
|
Intangible asset
impairment primarily reflects a partial impairment charge related
to the CoolSculpting intangible asset triggered
by a strategic decision to reduce ongoing sales and marketing
investment for the product. Litigation matters primarily
includes
income related to a favorable settlement of a litigation
matter.
|
|
Reported GAAP earnings
and adjusted non-GAAP earnings for the three months ended December
31, 2023 included acquired
IPR&D and milestones expense of $282 million on a pre-tax
and $264 million after-tax basis, representing an unfavorable
impact
of $0.15 to both diluted EPS and adjusted diluted EPS.
|
|
2. The impact of the
specified items by line item was as follows:
|
|
|
Quarter Ended
December 31, 2023
|
(in millions)
|
Cost of
products
sold
|
|
SG&A
|
|
R&D
|
|
Interest
expense,
net
|
|
Other
expense,
net
|
As reported
(GAAP)
|
$
5,704
|
|
$
3,193
|
|
$
1,927
|
|
$
378
|
|
$
1,556
|
Adjusted for specified
items:
|
|
|
|
|
|
|
|
|
|
Intangible asset
amortization
|
(1,889)
|
|
—
|
|
—
|
|
—
|
|
—
|
Intangible asset
impairment
|
(1,405)
|
|
—
|
|
—
|
|
—
|
|
—
|
Acquisition and
integration costs
|
(24)
|
|
(78)
|
|
(6)
|
|
(15)
|
|
—
|
Change in fair value
of contingent consideration
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,696)
|
Litigation
matters
|
—
|
|
491
|
|
—
|
|
—
|
|
—
|
Other
|
(89)
|
|
(66)
|
|
1
|
|
—
|
|
(2)
|
As adjusted
(non-GAAP)
|
$
2,297
|
|
$
3,540
|
|
$
1,922
|
|
$
363
|
|
$
(142)
|
|
3. The adjusted tax rate for
the fourth quarter of 2023 was 17.2 percent, as detailed
below:
|
|
|
Quarter Ended
December 31, 2023
|
(dollars in
millions)
|
Pre-tax
earnings
|
|
Income taxes
|
|
Tax rate
|
As reported
(GAAP)
|
$
1,212
|
|
$
388
|
|
32.1 %
|
Specified
items
|
4,778
|
|
641
|
|
13.4 %
|
As adjusted
(non-GAAP)
|
$
5,990
|
|
$
1,029
|
|
17.2 %
|
AbbVie
Inc.
Reconciliation of
GAAP Reported to Non-GAAP Adjusted Information
(Unaudited)
|
|
1. Specified items impacted
results as follows:
|
|
|
Quarter Ended
December 31, 2022
|
(in millions, except
per share data)
|
Earnings
|
|
Diluted
|
|
Pre-tax
|
|
After-taxa
|
|
EPS
|
As reported
(GAAP)
|
$
2,965
|
|
$
2,473
|
|
$
1.38
|
Adjusted for specified
items:
|
|
|
|
|
|
Intangible asset
amortization
|
1,961
|
|
1,636
|
|
0.92
|
Acquisition and
integration costs
|
215
|
|
199
|
|
0.11
|
Change in fair value
of contingent consideration
|
2,114
|
|
2,113
|
|
1.19
|
Income tax
items
|
—
|
|
(143)
|
|
(0.08)
|
Other
|
157
|
|
144
|
|
0.08
|
As adjusted
(non-GAAP)
|
$
7,412
|
|
$
6,422
|
|
$
3.60
|
|
a Represents net earnings
attributable to AbbVie Inc.
|
|
Acquisition and
integration costs primarily include costs related to the Allergan
acquisition. Income tax items include a benefit
of $323 million related to tax law changes partially offset by
certain other tax related items. Other primarily includes
restructuring
charges associated with streamlining global operations.
|
|
Reported GAAP earnings
and adjusted non-GAAP earnings for the three months ended December
31, 2022 included acquired
IPR&D and milestones expense of $243 million on a
pre-tax and after-tax basis, representing an unfavorable impact of
$0.13 to
both diluted EPS and adjusted diluted EPS.
|
|
2. The impact of the
specified items by line item was as follows:
|
|
|
Quarter Ended
December 31, 2022
|
(in millions)
|
Cost of
products
sold
|
|
SG&A
|
|
R&D
|
|
Other
operating
expense
(income),
net
|
|
Other
expense,
net
|
As reported
(GAAP)
|
$ 4,170
|
|
$ 3,417
|
|
$ 1,790
|
|
$
(1)
|
|
$ 2,021
|
Adjusted for specified
items:
|
|
|
|
|
|
|
|
|
|
Intangible asset
amortization
|
(1,961)
|
|
—
|
|
—
|
|
—
|
|
—
|
Acquisition and
integration costs
|
1
|
|
(205)
|
|
(11)
|
|
—
|
|
—
|
Change in fair value
of contingent consideration
|
—
|
|
—
|
|
—
|
|
—
|
|
(2,114)
|
Other
|
(99)
|
|
(62)
|
|
(38)
|
|
1
|
|
41
|
As adjusted
(non-GAAP)
|
$ 2,111
|
|
$ 3,150
|
|
$ 1,741
|
|
$
—
|
|
$
(52)
|
|
3. The adjusted tax rate for
the fourth quarter of 2022 was 13.4 percent, as detailed
below:
|
|
|
Quarter Ended
December 31, 2022
|
(dollars in
millions)
|
Pre-tax
earnings
|
|
Income taxes
|
|
Tax rate
|
As reported
(GAAP)
|
$
2,965
|
|
$
493
|
|
16.6 %
|
Specified
items
|
4,447
|
|
498
|
|
11.2 %
|
As adjusted
(non-GAAP)
|
$
7,412
|
|
$
991
|
|
13.4 %
|
AbbVie
Inc.
Reconciliation of
GAAP Reported to Non-GAAP Adjusted Information
(Unaudited)
|
|
1. Specified items impacted
results as follows:
|
|
|
Twelve Months Ended
December 31, 2023
|
(in millions, except
per share data)
|
Earnings
|
|
Diluted
|
|
Pre-tax
|
|
After-taxa
|
|
EPS
|
As reported
(GAAP)
|
$
6,250
|
|
$
4,863
|
|
$
2.72
|
Adjusted for specified
items:
|
|
|
|
|
|
Intangible asset
amortization
|
7,946
|
|
6,685
|
|
3.76
|
Intangible asset
impairment
|
4,229
|
|
3,455
|
|
1.96
|
Acquisition and
integration costs
|
161
|
|
122
|
|
0.07
|
Change in fair value
of contingent consideration
|
5,128
|
|
5,003
|
|
2.81
|
Litigation
matters
|
(485)
|
|
(381)
|
|
(0.22)
|
Other
|
225
|
|
22
|
|
0.01
|
As adjusted
(non-GAAP)
|
$
23,454
|
|
$
19,769
|
|
$
11.11
|
|
a Represents net earnings
attributable to AbbVie Inc.
|
|
Intangible asset
impairment primarily reflects partial impairment charges related to
the U.S. Imbruvica and CoolSculpting
intangible assets. The Imbruvica impairment charge of $2.1 billion
was triggered by selection of Imbruvica for price negotiation
as part of the IRA of 2022 and the CoolSculpting impairment charge
of $1.0 billion was triggered by a strategic decision to
reduce ongoing sales and marketing investment for the product.
Acquisition and integration costs primarily include costs
related to the Allergan acquisition, including a one-time gain of
$169 million related to the termination of a development
liability
associated with a previously divested product. Litigation matters
primarily includes income related to a favorable settlement of
a litigation matter.
|
|
Reported GAAP earnings
and adjusted non-GAAP earnings for the twelve months ended December
31, 2023 included acquired
IPR&D and milestones expense of $778 million on a pre-tax
and $741 million on an after-tax basis, representing an
unfavorable
impact of $0.42 to both diluted EPS and adjusted diluted
EPS.
|
|
2. The impact of the
specified items by line item was as follows:
|
|
|
Twelve Months Ended
December 31, 2023
|
(in millions)
|
Cost of
products
sold
|
|
SG&A
|
|
R&D
|
|
Other
operating
expense
(income),
net
|
|
Interest
expense,
net
|
|
Other
expense,
net
|
As reported
(GAAP)
|
$
20,415
|
|
$
12,872
|
|
$
7,675
|
|
$
(179)
|
|
$
1,684
|
|
$
4,677
|
Adjusted for specified
items:
|
|
|
|
|
|
|
|
|
|
|
|
Intangible asset
amortization
|
(7,946)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Intangible asset
impairment
|
(3,599)
|
|
—
|
|
(630)
|
|
—
|
|
—
|
|
—
|
Acquisition and
integration costs
|
(90)
|
|
(212)
|
|
(13)
|
|
169
|
|
(15)
|
|
—
|
Change in fair value
of contingent consideration
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(5,128)
|
Litigation
matters
|
—
|
|
485
|
|
—
|
|
—
|
|
—
|
|
—
|
Other
|
(134)
|
|
(73)
|
|
(3)
|
|
10
|
|
—
|
|
(25)
|
As adjusted
(non-GAAP)
|
$
8,646
|
|
$
13,072
|
|
$
7,029
|
|
$
—
|
|
$
1,669
|
|
$
(476)
|
|
3. The adjusted tax rate for
the full-year 2023 was 15.7 percent, as detailed below:
|
|
|
Twelve Months Ended
December 31, 2023
|
(dollars in
millions)
|
Pre-tax
earnings
|
|
Income taxes
|
|
Tax rate
|
As reported
(GAAP)
|
$
6,250
|
|
$
1,377
|
|
22.0 %
|
Specified
items
|
17,204
|
|
2,298
|
|
13.4 %
|
As adjusted
(non-GAAP)
|
$
23,454
|
|
$
3,675
|
|
15.7 %
|
AbbVie
Inc.
Reconciliation of
GAAP Reported to Non-GAAP Adjusted Information
(Unaudited)
|
|
1. Specified items impacted
results as follows:
|
|
|
Twelve Months Ended
December 31, 2022
|
(in millions, except
per share data)
|
Earnings
|
|
Diluted
|
|
Pre-tax
|
|
After-taxa
|
|
EPS
|
As reported
(GAAP)
|
$
13,477
|
|
$
11,836
|
|
$
6.63
|
Adjusted for specified
items:
|
|
|
|
|
|
Intangible asset
amortization
|
7,689
|
|
6,430
|
|
3.61
|
Intangible asset
impairment
|
770
|
|
604
|
|
0.34
|
Acquisition and
integration costs
|
810
|
|
766
|
|
0.43
|
Change in fair value
of contingent consideration
|
2,761
|
|
2,770
|
|
1.55
|
Pylera
divestiture
|
(172)
|
|
(126)
|
|
(0.07)
|
Litigation
matters
|
2,506
|
|
2,028
|
|
1.13
|
Income tax
items
|
—
|
|
(26)
|
|
(0.02)
|
Other
|
429
|
|
315
|
|
0.17
|
As adjusted
(non-GAAP)
|
$
28,270
|
|
$
24,597
|
|
$
13.77
|
|
a Represents net earnings
attributable to AbbVie Inc.
|
|
Acquisition and
integration costs primarily include costs related to the Allergan
acquisition. Litigation matters primarily include
a charge related to a settlement of litigation involving Allergan's
past sales of opioid products. Income tax items include a
benefit
of $323 million related to tax law changes partially offset by
certain other tax related items. Other primarily includes
restructuring
charges associated with streamlining global operations.
|
|
Reported GAAP earnings
and adjusted non-GAAP earnings for the twelve months ended December
31, 2022 included acquired
IPR&D and milestones expense of $697 million on a pre-tax
and $682 million after-tax basis, representing an unfavorable
impact
of $0.39 to both diluted EPS and adjusted diluted EPS.
|
|
2. The impact of the
specified items by line item was as follows:
|
|
|
Twelve Months Ended
December 31, 2022
|
(in millions)
|
Cost of
products
sold
|
|
SG&A
|
|
R&D
|
|
Other
operating
expense
(income),
net
|
|
Other
expense,
net
|
As reported
(GAAP)
|
$
17,414
|
|
$
15,260
|
|
$
6,510
|
|
$
56
|
|
$
2,448
|
Adjusted for specified
items:
|
|
|
|
|
|
|
|
|
|
Intangible asset
amortization
|
(7,689)
|
|
—
|
|
—
|
|
—
|
|
—
|
Intangible asset
impairment
|
(770)
|
|
—
|
|
—
|
|
—
|
|
—
|
Acquisition and
integration costs
|
(83)
|
|
(468)
|
|
(30)
|
|
(229)
|
|
—
|
Change in fair value
of contingent consideration
|
—
|
|
—
|
|
—
|
|
—
|
|
(2,761)
|
Pylera
divestiture
|
—
|
|
—
|
|
—
|
|
172
|
|
—
|
Litigation
matters
|
—
|
|
(2,506)
|
|
—
|
|
—
|
|
—
|
Other
|
(259)
|
|
(160)
|
|
(45)
|
|
1
|
|
34
|
As adjusted
(non-GAAP)
|
$
8,613
|
|
$
12,126
|
|
$
6,435
|
|
$
—
|
|
$
(279)
|
|
3. The adjusted tax rate for
the full-year 2022 was 13.0 percent, as detailed below:
|
|
|
Twelve Months Ended
December 31, 2022
|
(dollars in
millions)
|
Pre-tax
earnings
|
|
Income taxes
|
|
Tax rate
|
As reported
(GAAP)
|
$
13,477
|
|
$
1,632
|
|
12.1 %
|
Specified
items
|
14,793
|
|
2,032
|
|
13.7 %
|
As adjusted
(non-GAAP)
|
$
28,270
|
|
$
3,664
|
|
13.0 %
|
View original
content:https://www.prnewswire.com/news-releases/abbvie-reports-full-year-and-fourth-quarter-2023-financial-results-302051443.html
SOURCE AbbVie