Oct 30, 2024 SOURCE: PR NewsWire
AbbVie Reports Third-Quarter 2024 Financial Results
-- Reports Third-Quarter Diluted EPS of $0.88 on a GAAP Basis, a Decrease
of 12.0 Percent; Adjusted Diluted EPS of $3.00, an Increase of 1.7
Percent; These Results Include an Unfavorable Impact of $0.04 Per Share
Related to Acquired IPR&D and Milestones Expense
-- Delivers Third-Quarter Net Revenues of $14.460 Billion, an Increase of
3.8 Percent on a Reported Basis or 4.9 Percent on an Operational Basis
-- Third-Quarter Global Net Revenues from the Immunology Portfolio Were
$7.046 Billion, an Increase of 3.9 Percent on a Reported Basis, or 4.8
Percent on an Operational Basis; Global Humira Net Revenues Were $2.227
Billion; Global Skyrizi Net Revenues Were $3.205 Billion; Global Rinvoq
Net Revenues Were $1.614 Billion
-- Third-Quarter Global Net Revenues from the Oncology Portfolio Were
$1.687 Billion, an Increase of 11.6 Percent on a Reported Basis, or 13.0
Percent on an Operational Basis; Global Imbruvica Net Revenues Were $828
Million; Global Venclexta Net Revenues Were $677 Million
-- Third-Quarter Global Net Revenues from the Neuroscience Portfolio Were
$2.363 Billion, an Increase of 15.6 Percent on a Reported Basis, or 16.0
Percent on an Operational Basis; Global Botox Therapeutic Net Revenues
Were $848 Million; Global Vraylar Net Revenues Were $875 Million;
Combined Global Ubrelvy and Qulipta Net Revenues Were $445 Million
-- Third-Quarter Global Net Revenues from the Aesthetics Portfolio Were
$1.239 Billion, a Decrease of 0.1 Percent on a Reported Basis, or an
Increase of 1.8 Percent on an Operational Basis; Global Botox Cosmetic
Net Revenues Were $671 Million; Global Juvederm Net Revenues Were $258
Million
-- Successfully Completed Acquisition of Cerevel, Adding Pipeline of Highly
Complementary Assets to AbbVie's Existing Neuroscience Portfolio
-- Raises 2024 Adjusted Diluted EPS Guidance Range from $10.67 - $10.87 to
$10.90 - $10.94, which Includes an Unfavorable Impact of $0.64 Per Share
Related to Acquired IPR&D and Milestones Expense Incurred Year-To-Date
Through the Third Quarter 2024
-- Announces 2025 Dividend Increase of 5.8 Percent, Beginning with Dividend
Payable in February 2025
NORTH CHICAGO, Ill., Oct. 30, 2024 /PRNewswire/ -- AbbVie (NYSE:ABBV) announced financial results for the third quarter ended September 30, 2024.
"We delivered another quarter of strong commercial execution and significant pipeline progress," said Robert A. Michael, chief executive officer, AbbVie. "Based upon the momentum of AbbVie's business and our confidence in the long-term growth outlook, we are once again raising our full-year guidance and are increasing our quarterly dividend."
Third-Quarter Results
-- Worldwide net revenues were $14.460 billion, an increase of 3.8 percent
on a reported basis, or 4.9 percent on an operational basis.
-- Global net revenues from the immunology portfolio were $7.046 billion,
an increase of 3.9 percent on a reported basis, or 4.8 percent on an
operational basis.
-- Global Humira net revenues of $2.227 billion decreased 37.2 percent
on a reported basis, or 36.5 percent on an operational basis. U.S.
Humira net revenues were $1.765 billion, a decrease of 41.6 percent.
Internationally, Humira net revenues were $462 million, a decrease
of 12.4 percent on a reported basis, or 7.8 percent on an
operational basis.
-- Global Skyrizi net revenues were $3.205 billion, an increase of 50.8
percent on a reported basis, or 51.5 percent on an operational
basis.
-- Global Rinvoq net revenues were $1.614 billion, an increase of 45.3
percent on a reported basis, or 47.4 percent on an operational
basis.
-- Global net revenues from the oncology portfolio were $1.687 billion, an
increase of 11.6 percent on a reported basis, or 13.0 percent on an
operational basis.
-- Global Imbruvica net revenues were $828 million, a decrease of 8.8
percent, with U.S. net revenues of $618 million and international
profit sharing of $210 million.
-- Global Venclexta net revenues were $677 million, an increase of 14.8
percent on a reported basis, or 18.2 percent on an operational
basis.
-- Global Elahere net revenues were $139 million.
-- Global net revenues from the neuroscience portfolio were $2.363 billion,
an increase of 15.6 percent on a reported basis, or 16.0 percent on an
operational basis.
-- Global Botox Therapeutic net revenues were $848 million, an increase
of 13.4 percent on a reported basis, or 14.4 percent on an
operational basis.
-- Global Vraylar net revenues were $875 million, an increase of 16.6
percent.
-- Global Ubrelvy net revenues were $269 million, an increase of 15.3
percent.
-- Global Qulipta net revenues were $176 million, an increase of 33.6
percent.
-- Global net revenues from the aesthetics portfolio were $1.239 billion, a
decrease of 0.1 percent on a reported basis, or an increase of 1.8
percent on an operational basis.
-- Global Botox Cosmetic net revenues were $671 million, an increase of
8.2 percent on a reported basis, or 9.9 percent on an operational
basis.
-- Global Juvederm net revenues were $258 million, a decrease of 19.7
percent on a reported basis, or 16.9 percent on an operational
basis.
-- On a GAAP basis, the gross margin ratio in the third quarter was 70.9
percent. The adjusted gross margin ratio was 84.4 percent.
-- On a GAAP basis, selling, general and administrative (SG&A) expense was
29.1 percent of net revenues. The adjusted SG&A expense was 23.0 percent
of net revenues.
-- On a GAAP basis, research and development (R&D) expense was 14.7 percent
of net revenues. The adjusted R&D expense was 14.2 percent of net
revenues.
-- Acquired IPR&D and milestones expense was 0.6 percent of net revenues.
-- On a GAAP basis, the operating margin in the third quarter was 26.5
percent. The adjusted operating margin was 46.7 percent.
-- Net interest expense was $591 million.
-- On a GAAP basis, the tax rate in the quarter was 25.0 percent. The
adjusted tax rate was 16.2 percent.
-- Diluted EPS in the third quarter was $0.88 on a GAAP basis. Adjusted
diluted EPS, excluding specified items, was $3.00. These results include
an unfavorable impact of $0.04 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 it completed its acquisition of Cerevel, adding a
pipeline of highly complementary assets to AbbVie's existing
neuroscience portfolio. Cerevel's pipeline includes emraclidine, a
potential best-in-class, next-generation antipsychotic, that is being
studied for the treatment of schizophrenia; tavapadon, a first-in-class
dopamine D1/D5 selective partial agonist for the management of
Parkinson's disease (PD); as well as CVL-354, a potential best-in-class
kappa opioid receptor (KOR) antagonist being studied for the treatment
of major depressive disorder (MDD). Cerevel is a strong strategic fit
for AbbVie and has potential to meaningfully impact revenue into the
next decade.
-- AbbVie announced positive topline results from its pivotal Phase 3
TEMPO-1 trial evaluating tavapadon as a fixed-dose monotherapy treatment
in early PD. In the study, tavapadon met the primary endpoint,
demonstrating a statistically significant improvement from baseline in
the Movement Disorder Society - Unified Parkinson's Disease Rating Scale
(MDS-UPDRS) Parts II and III combined score at week 26. Tavapadon also
met the key secondary endpoint, demonstrating statistically significant
improvement from baseline in the MDS-UPDRS Part II score. Full results
from the TEMPO-1 study will be submitted for presentation at future
medical meetings and used to support regulatory submissions of tavapadon
as a treatment for PD. Topline results from TEMPO-2, the Phase 3
flexible-dose monotherapy trial for tavapadon, are expected by the end
of 2024.
-- AbbVie announced the U.S. Food and Drug Administration (FDA) approved
Vyalev (foscarbidopa and foslevodopa) as the first subcutaneous 24-hour
infusion of levodopa-based therapy for the treatment of motor
fluctuations in adults with advanced PD. The approval was supported by
results from a pivotal Phase 3 head-to-head, randomized and controlled
clinical trial that demonstrated a statistically significant improvement
in "on" time without troublesome dyskinesia and decreased "off" time,
compared to oral immediate-release carbidopa/levodopa (CD/LD).
-- AbbVie and Aliada Therapeutics announced a definitive agreement under
which AbbVie will acquire Aliada, a biotechnology company advancing
therapies using a novel blood-brain barrier (BBB)-crossing technology to
address challenging central nervous system (CNS) diseases. Aliada's lead
investigational asset utilizing this delivery technology, ALIA-1758, is
an anti-pyroglutamate amyloid beta (3pE-A ) antibody in development for
the treatment of Alzheimer's disease (AD). The acquisition also allows
AbbVie to utilize Aliada's novel BBB-crossing technology to enhance
discovery and development efforts across neuroscience.
-- AbbVie and Gedeon Richter announced a new discovery, co-development and
license agreement to advance novel targets for the potential treatment
of neuropsychiatric conditions. This collaboration expands upon the
success of nearly two decades of partnership on CNS projects.
-- AbbVie announced the European Commission (EC) approved Skyrizi
(risankizumab) for the treatment of adult patients with moderately to
severely active ulcerative colitis (UC) who have had an inadequate
response, lost response, or were intolerant to conventional or biologic
therapy. The approval was supported by data from two pivotal Phase 3
trials in which Skyrizi achieved the primary endpoint of clinical
remission as well as key secondary endpoints. This marketing
authorization for Skyrizi marks its fourth approved indication in the
European Union (EU). Skyrizi is part of a collaboration between
Boehringer Ingelheim and AbbVie, with AbbVie leading development and
commercialization globally.
-- At the European Academy of Dermatology and Venerology (EADV) Congress
2024, AbbVie shared more than 30 presentations that showcased the depth
and strength of AbbVie's dermatology portfolio. Presentations
highlighted data for Rinvoq (upadacitinib), Skyrizi and lutikizumab
across a multitude of dermatological conditions.
-- AbbVie announced that the EC granted conditional marketing authorization
for Tepkinly (epcoritamab) as a monotherapy for the treatment of adult
patients with relapsed or refractory (r/r) follicular lymphoma (FL)
after two or more lines of prior therapy. Tepkinly is the first
subcutaneous bispecific antibody conditionally approved as a monotherapy
in the EU to treat both r/r FL and r/r diffuse large B-cell lymphoma
(DLBCL), after two or more lines of prior therapy. The EC approval is
supported by data from the Phase 1/2 EPCORE NHL-1 clinical trial, which
evaluated the safety and efficacy of Tepkinly in adult patients with r/r
FL. Tepkinly is being co-developed by AbbVie and Genmab.
-- AbbVie announced the European Medicines Agency's (EMA) Committee for
Medicinal Products for Human Use (CHMP) adopted a positive opinion
recommending the marketing authorization of Elahere (mirvetuximab
soravtansine) for the treatment of adult patients with folate receptor
alpha (FR )-positive, platinum-resistant and high-grade serous
epithelial ovarian, fallopian tube or primary peritoneal cancer who have
received one to three prior treatment regimens. The CHMP's opinion is
supported by results of the Phase 3 MIRASOL clinical trial and the EC
decision on this indication for Elahere is anticipated later this year.
-- AbbVie announced submission of a Biologics License Application (BLA) to
the FDA for accelerated approval (AA) of Teliso-V (telisotuzumab
vedotin) in adult patients with previously treated, locally advanced or
metastatic epidermal growth factor receptor (EGFR) wild type,
nonsquamous non-small cell lung cancer (NSCLC) with c-Met protein
overexpression. The BLA is supported by data from the Phase 2 LUMINOSITY
clinical trial and review of the BLA will be conducted under FDA's
Oncology Center of Excellence (OCE) Real-Time Oncology Review (RTOR)
program. There are currently no approved anti-cancer therapies
specifically for c-Met overexpressing NSCLC and if approved, Teliso-V
would be the first-in-class therapy for this patient population.
-- At the European Society for Medical Oncology (ESMO) Congress 2024,
AbbVie showcased new data from its innovative antibody-drug conjugate
(ADC) platform in tumor types with high unmet needs. Highlights included
full data from the primary analysis of the positive, single-arm Phase 2
PICCOLO trial, evaluating Elahere for high FR expressing
platinum-sensitive ovarian cancer (PSOC); patient reported outcomes from
the Phase 2 LUMINOSITY trial, evaluating Teliso-V in advanced NSCLC; as
well as new safety and efficacy data in pre-treated patients with
advanced NSCLC and gastroesophageal (GEA) cancer, from a Phase 1 study
of ABBV-400 (telisotuzumab adizutecan).
-- Allergan Aesthetics announced the FDA approved Botox Cosmetic
(onabotulinumtoxinA) for temporary improvement in the appearance of
moderate to severe vertical bands connecting the jaw and neck (platysma
bands) in adults. Botox Cosmetic is the first product with four
aesthetic indication areas: forehead lines, frown lines, crow's feet
lines, and now platysma bands, making it the first product of its kind
to go beyond the face.
-- Allergan Aesthetics announced the launch of Botox Cosmetic for the
treatment of masseter muscle prominence (MMP) in China. The approval is
supported by Botox Cosmetic's well-established safety profile as well as
clinical trial data that demonstrated Botox Cosmetic is effective in
reducing the prominence of the masseter muscle. Botox Cosmetic is the
first neurotoxin approved in China for MMP, the largest global MMP
market. Allergan Aesthetics intends to develop Botox Cosmetic treatment
for MMP in additional global markets and expand the use of Botox
Cosmetic in the lower face.
-- At the American Society for Dermal Surgery (ASDS), Allergan Aesthetics
presented a total of 12 abstracts that showcased its commitment to
patient outcomes and detailed insights and understanding of key concerns
across differentiated patient segments. Highlights included four Best of
Cosmetic Abstracts as well as a panel discussion on the impact of social
media on patient experience and expectations when considering aesthetic
treatment.
Full-Year 2024 Outlook
AbbVie is raising its adjusted diluted EPS guidance for the full year 2024 from $10.67 - $10.87 to $10.90 - $10.94, which includes an unfavorable impact of $0.64 per share related to acquired IPR&D and milestones expense incurred year-to-date through the third 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 third quarter of 2024, as both cannot be reliably forecasted. Any potential IPR&D and milestones expense related to the recently announced acquisition of Aliada Therapeutics is also excluded from AbbVie's 2024 adjusted diluted EPS guidance, as the transaction is expected to close in the fourth quarter of 2024.
Company Declares Dividend Increase of 5.8 Percent
AbbVie is announcing today that its board of directors declared an increase in the company's quarterly cash dividend from $1.55 per share to $1.64 per share beginning with the dividend payable on February 14, 2025 to shareholders of record as of January 15, 2025. This reflects an increase of approximately 5.8 percent, continuing AbbVie's strong commitment to returning cash to shareholders through a growing dividend. Since the company's inception in 2013, AbbVie has increased its quarterly dividend by 310 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years.
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 third-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, 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 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. 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 September 30, 2024
(Unaudited)
% Change vs. 3Q23
Net Revenues (in millions) Reported Operationala
U.S. Int'l. Total U.S. Int'l. Total Int'l. Total
---
NET REVENUES $11,148 $3,312 $14,460 2.7 % 7.7 % 3.8 % 12.4 % 4.9 %
Immunology 5,713 1,333 7,046 0.3 22.7 3.9 28.4 4.8
Humira 1,765 462 2,227 (41.6) (12.4) (37.2) (7.8) (36.5)
Skyrizi 2,778 427 3,205 48.3 70.0 50.8 75.7 51.5
Rinvoq 1,170 444 1,614 45.9 44.0 45.3 51.6 47.4
Oncology 1,113 574 1,687 14.4 6.5 11.6 10.3 13.0
Imbruvicab 618 210 828 (8.9) (8.4) (8.8) (8.4) (8.8)
Venclexta 340 337 677 21.5 8.9 14.8 15.4 18.2
Elahere 139 139 n/m n/m n/m n/m n/m
Epkinlyc 16 27 43 13.4 >100.0 >100.0 >100.0 >100.0
Aesthetics 791 448 1,239 3.9 (6.4) (0.1) (1.6) 1.8
Botox Cosmetic 414 257 671 6.5 10.9 8.2 15.5 9.9
Juvederm Collection 105 153 258 (10.2) (25.1) (19.7) (20.8) (16.9)
Other Aesthetics 272 38 310 6.4 (10.0) 4.0 (2.0) 5.1
Neuroscience 2,088 275 2,363 14.9 21.2 15.6 25.1 16.0
Botox Therapeutic 708 140 848 13.1 14.6 13.4 20.7 14.4
Vraylar 873 2 875 16.5 49.3 16.6 51.9 16.6
Duodopa 24 87 111 (4.7) (7.1) (6.6) (6.4) (6.0)
Ubrelvy 261 8 269 13.6 >100.0 15.3 >100.0 15.3
Qulipta 168 8 176 28.3 >100.0 33.6 >100.0 33.6
Other Neuroscience 54 30 84 (4.1) >100.0 36.4 >100.0 37.1
Eye Care 240 285 525 (22.9) (3.5) (13.5) 1.2 (11.2)
Ozurdex 33 86 119 (2.3) (0.3) (0.9) 2.5 1.1
Lumigan/Ganfort 58 58 116 >100.0 (7.0) 27.2 (2.7) 30.2
Alphagan/Combigan 26 36 62 (15.3) (10.0) (12.3) (4.5) (9.2)
Restasis 8 13 21 (92.5) 2.1 (82.2) 8.1 (81.5)
Other Eye Care 115 92 207 1.7 (2.0) 4.2 2.8
Other Key Products 710 164 874 (5.6) (22.1) (9.3) (19.5) (8.7)
Mavyret 147 155 302 (12.7) (23.1) (18.4) (20.5) (17.0)
Creon 338 338 10.6 n/m 10.6 n/m 10.6
Linzess/Constella 225 9 234 (19.2) 0.4 (18.6) 2.0 (18.6)
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
Nine Months Ended September 30, 2024
(Unaudited)
% Change vs. 9M23
Net Revenues (in millions) Reported Operationala
U.S. Int'l. Total U.S. Int'l. Total Int'l. Total
---
NET REVENUES $31,295 $9,937 $41,232 1.7 % 7.5 % 3.0 % 12.2 % 4.1 %
Immunology 15,582 3,806 19,388 (2.4) 18.2 1.1 24.2 2.1
Humira 5,896 1,415 7,311 (37.4) (15.8) (34.1) (10.8) (33.3)
Skyrizi 6,774 1,166 7,940 45.8 61.8 47.9 66.6 48.5
Rinvoq 2,912 1,225 4,137 53.6 49.6 52.4 58.5 55.1
Oncology 3,117 1,747 4,864 11.1 9.2 10.4 12.7 11.7
Imbruvicab 1,823 676 2,499 (8.0) (4.9) (7.2) (4.9) (7.2)
Venclexta 921 1,007 1,928 13.6 13.4 13.5 19.7 16.8
Elaherec 331 331 n/m n/m n/m n/m n/m
Epkinlyd 42 64 106 >100.0 >100.0 >100.0 >100.0 >100.0
Aesthetics 2,430 1,448 3,878 2.7 (7.0) (1.2) (2.2) 0.7
Botox Cosmetic 1,253 780 2,033 2.9 4.5 3.5 9.1 5.3
Juvederm Collection 349 549 898 (4.1) (19.3) (14.0) (14.6) (10.9)
Other Aesthetics 828 119 947 5.6 (8.7) 3.5 (1.8) 4.5
Neuroscience 5,697 793 6,490 15.6 14.1 15.4 17.0 15.8
Botox Therapeutic 1,988 422 2,410 8.8 8.6 8.8 13.1 9.6
Vraylar 2,338 5 2,343 18.9 76.0 18.9 76.9 18.9
Duodopa 72 267 339 (3.3) (4.4) (4.1) (4.0) (3.8)
Ubrelvy 685 18 703 19.3 >100.0 20.9 >100.0 20.9
Qulipta 442 15 457 51.3 >100.0 55.5 >100.0 55.5
Other Neuroscience 172 66 238 (11.6) >100.0 13.5 >100.0 14.1
Eye Care 706 890 1,596 (24.7) (0.3) (12.8) 3.8 (10.8)
Ozurdex 102 272 374 (4.4) 10.0 5.7 13.1 7.8
Lumigan/Ganfort 129 181 310 (9.5) (8.7) (9.0) (5.9) (7.4)
Alphagan/Combigan 54 116 170 (40.3) (0.1) (17.7) 6.9 (13.8)
Restasis 70 40 110 (73.4) (7.4) (64.2) (2.2) (63.5)
Other Eye Care 351 281 632 5.3 (2.4) 1.7 2.1 3.8
Other Key Products 2,146 590 2,736 (3.4) (4.2) (3.6) (0.9) (2.9)
Mavyret 458 562 1,020 (13.9) (4.6) (9.0) (1.2) (7.2)
Creon 995 995 11.5 n/m 11.5 n/m 11.5
Linzess/Constella 693 28 721 (13.2) 6.2 (12.6) 6.0 (12.6)
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 year 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) Third Quarter Nine Months
Ended September 30 Ended September 30
2024 2023 2024 2023
Net revenues $14,460 $13,927 $41,232 $40,017
Cost of products sold 4,212 6,485 12,508 14,711
Selling, general and administrative 4,205 3,372 10,897 9,679
Research and development 2,130 1,723 6,017 5,748
Acquired IPR&D and milestones 82 66 1,183 496
Other operating income - (179)
Total operating costs and expenses 10,629 11,646 30,605 30,455
Operating earnings 3,831 2,281 10,627 9,562
Interest expense, net 591 398 1,550 1,306
Net foreign exchange loss (gain) (3) 25 2 97
Other expense (income), net 1,159 (95) 3,090 3,121
Earnings before income tax expense 2,084 1,953 5,985 5,038
Income tax expense 520 172 1,676 989
Net earnings 1,564 1,781 4,309 4,049
Net earnings attributable to noncontrolling interest 3 3 9 8
Net earnings attributable to AbbVie Inc. $1,561 $1,778 $4,300 $4,041
Diluted earnings per share attributable to AbbVie Inc. $0.88 $1.00 $2.41 $2.26
Adjusted diluted earnings per sharea $3.00 $2.95 $7.96 $8.32
Weighted-average diluted shares outstanding 1,772 1,771 1,772 1,772
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 September 30, 2024
(in millions, except per share data)
Earnings Diluted
Pre-tax After-taxa EPS
As reported (GAAP) $2,084 $1,561 $0.88
Adjusted for specified items:
Intangible asset amortization 1,888 1,600 0.89
Acquisition and integration costs 307 283 0.16
Change in fair value of contingent consideration 1,356 1,321 0.75
Litigation matters 692 543 0.31
Other 30 19 0.01
As adjusted (non-GAAP) $6,357 $5,327 $3.00
a Represents net earnings attributable to AbbVie Inc.
Acquisition and integration costs primarily reflect costs related to the Cerevel Therapeutics acquisition. Litigation matters
primarily include charges related to actual and potential settlements of litigation.
Reported GAAP earnings and adjusted non-GAAP earnings for the three months ended September 30, 2024 included
acquired IPR&D and milestone expense of $82 million on a pre-tax and $74 million on an after-tax basis, representing
an unfavorable impact of $0.04 to both diluted EPS and adjusted diluted EPS.
2. The impact of the specified items by line item was as follows:
Quarter Ended September 30, 2024
(in millions) Cost of SG&A R&D Other
products expense
sold (income),
net
As reported (GAAP) $4,212 $4,205 $2,130 $1,159
Adjusted for specified items:
Intangible asset amortization (1,888)
Acquisition and integration costs (43) (189) (75)
Change in fair value of contingent consideration - (1,356)
Litigation matters - (692)
Other (30) 2 (2)
As adjusted (non-GAAP) $2,251 $3,326 $2,055 $(199)
3. The adjusted tax rate for the third quarter of 2024 was 16.2 percent, as detailed below:
Quarter Ended September 30, 2024
(dollars in millions) Pre-tax Income taxes Tax
rate
earnings
As reported (GAAP) $2,084 $520 25.0 %
Specified items 4,273 507 11.9 %
As adjusted (non-GAAP) $6,357 $1,027 16.2 %
AbbVie Inc.
Reconciliation of GAAP Reported to Non-GAAP Adjusted Information
(Unaudited)
1. Specified items impacted results as follows:
Quarter Ended September 30, 2023
(in millions, except per share data)
Earnings Diluted
Pre-tax After-taxa EPS
As reported (GAAP) $1,953 $1,778 $1.00
Adjusted for specified items:
Intangible asset amortization 2,039 1,728 0.98
Intangible asset impairment 2,114 1,660 0.93
Acquisition and integration costs 60 54 0.03
Change in fair value of contingent consideration 8 8
Other 59 22 0.01
As adjusted (non-GAAP) $6,233 $5,250 $2.95
a Represents net earnings attributable to AbbVie Inc.
Intangible asset impairment reflects a partial impairment charge related to the U.S. Imbruvica intangible asset acquired as
part of the 2015 acquisition of Pharmacyclics, Inc. The intangible asset impairment charge was triggered by selection of
Imbruvica for price negotiation as part of the IRA of 2022, which contributed to a significant decrease in the estimated future
cash flows for the product
Reported GAAP earnings and adjusted non-GAAP earnings for the three months ended September 30, 2023 included
acquired IPR&D and milestones expense of $66 million on a pre-tax and after-tax basis, representing an unfavorable
impact of $0.04 to both diluted EPS and adjusted diluted EPS.
2. The impact of the specified items by line item was as follows:
Quarter Ended September 30, 2023
(in millions) Cost of SG&A R&D Other
products expense
sold (income),
net
As reported (GAAP) $6,485 $3,372 $1,723 $(95)
Adjusted for specified items:
Intangible asset amortization (2,039)
Intangible asset impairment (2,114)
Acquisition and integration costs (18) (40) (2)
Change in fair value of contingent consideration - (8)
Other (13) (2) (1) (43)
As adjusted (non-GAAP) $2,301 $3,330 $1,720 $(146)
3. The adjusted tax rate for the third quarter of 2023 was 15.7 percent, as detailed below:
Quarter Ended September 30, 2023
(dollars in millions) Pre-tax Income taxes Tax
rate
earnings
As reported (GAAP) $1,953 $172 8.8 %
Specified items 4,280 808 18.9 %
As adjusted (non-GAAP) $6,233 $980 15.7 %
AbbVie Inc.
Reconciliation of GAAP Reported to Non-GAAP Adjusted Information
(Unaudited)
1. Specified items impacted results as follows:
Nine Months Ended September 30, 2024
(in millions, except per share data)
Earnings Diluted
Pre-tax After-taxa EPS
As reported (GAAP) $5,985 $4,300 $2.41
Adjusted for specified items:
Intangible asset amortization 5,726 4,854 2.73
Acquisition and integration costs 963 894 0.50
Change in fair value of contingent consideration 3,492 3,402 1.92
Litigation matters 737 585 0.33
Other 96 122 0.07
As adjusted (non-GAAP) $16,999 $14,157 $7.96
a Represents net earnings attributable to AbbVie Inc.
Acquisition and integration costs primarily reflect costs related to the ImmunoGen and Cerevel Therapeutics acquisitions.
Litigation matters primarily include charges related to actual and potential settlements of litigation.
Reported GAAP earnings and adjusted non-GAAP earnings for the nine months ended September 30, 2024 included acquired
IPR&D and milestones expense of $1.2 billion on a pre-tax and $1.1 billion on an after-tax basis, representing an unfavorable
impact of $0.64 to both diluted EPS and adjusted diluted EPS.
2. The impact of the specified items by line item was as follows:
Nine Months Ended September 30, 2024
(in millions) Cost of SG&A R&D Interest Other
products expense, expense
sold net (income),
net
As reported (GAAP) $12,508 $10,897 $6,017 $1,550 $3,090
Adjusted for specified items:
Intangible asset amortization (5,726)
Acquisition and integration costs (201) (504) (234) (24)
Change in fair value of contingent consideration - (3,492)
Litigation matters - (737)
Other (87) 17 (26)
As adjusted (non-GAAP) $6,494 $9,673 $5,783 $1,526 $(428)
3. The adjusted tax rate for the first nine months of 2024 was 16.7 percent, as detailed below:
Nine Months Ended September 30, 2024
(dollars in millions) Pre-tax Income taxes Tax
rate
earnings
As reported (GAAP) $5,985 $1,676 28.0 %
Specified items 11,014 1,157 10.5 %
As adjusted (non-GAAP) $16,999 $2,833 16.7 %
AbbVie Inc.
Reconciliation of GAAP Reported to Non-GAAP Adjusted Information
(Unaudited)
1. Specified items impacted results as follows:
Nine Months Ended September 30, 2023
(in millions, except per share data)
Earnings Diluted
Pre-tax After-taxa EPS
As reported (GAAP) $5,038 $4,041 $2.26
Adjusted for specified items:
Intangible asset amortization 6,057 5,101 2.87
Intangible asset impairment 2,824 2,289 1.29
Acquisition and integration costs 38 15 0.01
Change in fair value of contingent consideration 3,432 3,348 1.88
Other 75 16 0.01
As adjusted (non-GAAP) $17,464 $14,810 $8.32
a Represents net earnings attributable to AbbVie Inc.
Acquisition and integration costs primarily reflect integration 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. Intangible
asset impairment primarily reflects a partial impairment charge of $2.1 billion related to the U.S. Imbruvica intangible asset
acquired as part of the 2015 acquisition of Pharmacyclics, Inc. The intangible asset impairment was triggered by selection of
Imbruvica for price negotiation as part of the IRA of 2022, which contributed to a significant decrease in the estimated future
cash flows for the product.
Reported GAAP earnings and adjusted non-GAAP earnings for the nine months ended September 30, 2023 included acquired
IPR&D and milestones expense of $496 million on a pre-tax and $477 million on an after-tax basis, representing an unfavorable
impact of $0.27 to both diluted EPS and adjusted diluted EPS.
2. The impact of the specified items by line item was as follows:
Nine Months Ended September 30, 2023
(in millions) Cost of SG&A R&D Other Other
products operating expense
sold income (income),
net
As reported (GAAP) $14,711 $9,679 $5,748 $(179) $3,121
Adjusted for specified items:
Intangible asset amortization (6,057)
Intangible asset impairment (2,194) (630)
Acquisition and integration costs (66) (134) (7) 169
Change in fair value of contingent consideration - (3,432)
Other (45) (13) (4) 10 (23)
As adjusted (non-GAAP) $6,349 $9,532 $5,107
$ - $(334)
3. The adjusted tax rate for the first nine months of 2023 was 15.2 percent, as detailed below:
Nine Months Ended September 30, 2023
(dollars in millions) Pre-tax Income taxes Tax
rate
earnings
As reported (GAAP) $5,038 $989 19.6 %
Specified items 12,426 1,657 13.3 %
As adjusted (non-GAAP) $17,464 $2,646 15.2 %
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SOURCE AbbVie
