Jan 31, 2025 SOURCE: PR NewsWire
AbbVie Reports Full-Year and Fourth-Quarter 2024 Financial Results
-- Reports Full-Year Diluted EPS of $2.39 on a GAAP Basis, a Decrease of
12.1 Percent; Adjusted Diluted EPS of $10.12, a Decrease of 8.9 Percent;
These Results Include an Unfavorable Impact of $1.52 Per Share Related
to 2024 Acquired IPR&D and Milestones Expense
-- Delivers Full-Year Net Revenues of $56.334 Billion, an Increase of 3.7
Percent on a Reported Basis and 4.6 Percent on an Operational Basis
-- Full-Year Global Net Revenues from the Immunology Portfolio Were $26.682
Billion, an Increase of 2.1 Percent on a Reported Basis, or 2.9 Percent
on an Operational Basis; Global Humira Net Revenues Were $8.993 Billion;
Global Skyrizi Net Revenues Were $11.718 Billion; Global Rinvoq Net
Revenues Were $5.971 Billion
-- Full-Year Global Net Revenues from the Oncology Portfolio Were $6.555
Billion, an Increase of 10.8 Percent on a Reported Basis, or 12.0
Percent on an Operational Basis; Global Imbruvica Net Revenues Were
$3.347 Billion; Global Venclexta Net Revenues Were $2.583 Billion
-- Full-Year Global Net Revenues from the Neuroscience Portfolio Were
$8.999 Billion, an Increase of 16.6 Percent on a Reported Basis, or 16.9
Percent on an Operational Basis; Global Botox Therapeutic Net Revenues
Were $3.283 Billion; Global Vraylar Net Revenues Were $3.267 Billion;
Combined Global Ubrelvy and Qulipta Net Revenues were $1.664 Billion
-- Full-Year Global Net Revenues from the Aesthetics Portfolio Were $5.176
Billion, a Decrease of 2.2 Percent on a Reported Basis, or 0.6 Percent
on an Operational Basis; Global Botox Cosmetic Net Revenues Were $2.720
Billion; Global Juvederm Net Revenues Were $1.177 Billion
-- Reports Fourth-Quarter Diluted Loss Per Share of $0.02 on a GAAP Basis,
Inclusive of the Recent Partial Intangible Asset Impairment Charge
Related to Emraclidine; Adjusted Diluted EPS of $2.16; These Results
Include an Unfavorable Impact of $0.88 Per Share Related to
Fourth-Quarter 2024 Acquired IPR&D and Milestones Expense
-- Delivers Fourth-Quarter Net Revenues of $15.102 Billion, an Increase of
5.6 Percent on a Reported Basis and 6.1 Percent on an Operational Basis
-- Provides 2025 Adjusted Diluted EPS Guidance Range of $12.12 to $12.32;
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 $31 Billion; Updates Outlook for Aesthetics to
Deliver High Single-Digit Compound Annual Revenue Growth Rate from 2025
through 2029
NORTH CHICAGO, Ill., Jan. 31, 2025 /PRNewswire/ -- AbbVie (NYSE:ABBV) announced financial results for the fourth quarter and full year ended December 31, 2024.
"2024 was a year of significant progress for AbbVie. Our growth platform delivered outstanding results, we advanced our pipeline with key regulatory approvals and promising data, and we strengthened our business through strategic transactions," said Robert A. Michael, chief executive officer, AbbVie. "We are entering 2025 with significant momentum and expect net revenues to exceed their previous peak in just the second full year following the U.S. Humira loss of exclusivity."
Fourth-Quarter Results
-- Worldwide net revenues were $15.102 billion, an increase of 5.6 percent
on a reported basis, or 6.1 percent on an operational basis.
-- Global net revenues from the immunology portfolio were $7.294 billion,
an increase of 4.9 percent on a reported basis, or 5.3 percent on an
operational basis.
-- Global Humira net revenues of $1.682 billion decreased 49.1 percent
on a reported basis, or 48.7 percent on an operational basis. U.S.
Humira net revenues were $1.246 billion, a decrease of 54.5 percent.
Internationally, Humira net revenues were $436 million, a decrease
of 22.7 percent on a reported basis, or 20.5 percent on an
operational basis.
-- Global Skyrizi net revenues were $3.778 billion, an increase of 57.7
percent on a reported basis, or 57.9 percent on an operational
basis.
-- Global Rinvoq net revenues were $1.834 billion, an increase of 46.2
percent on a reported basis, or 47.1 percent on an operational
basis.
-- Global net revenues from the oncology portfolio were $1.691 billion, an
increase of 12.0 percent on a reported basis, or 12.9 percent on an
operational basis.
-- Global Imbruvica net revenues were $848 million, a decrease of 6.2
percent, with U.S. net revenues of $625 million and international
profit sharing of $223 million.
-- Global Venclexta net revenues were $655 million, an increase of 11.0
percent on a reported basis, or 13.0 percent on an operational
basis.
-- Global Elahere net revenues were $148 million.
-- Global net revenues from the neuroscience portfolio were $2.509 billion,
an increase of 19.8 percent on a reported basis, or 19.9 percent on an
operational basis.
-- Global Botox Therapeutic net revenues were $873 million, an increase
of 12.5 percent on a reported basis, or 13.0 percent on an
operational basis.
-- Global Vraylar net revenues were $924 million, an increase of 17.1
percent.
-- Global Ubrelvy net revenues were $303 million, an increase of 29.6
percent.
-- Global Qulipta net revenues were $201 million, an increase of 76.4
percent on a reported basis, or 76.2 percent on an operational
basis.
-- Global net revenues from the aesthetics portfolio were $1.298 billion, a
decrease of 5.2 percent on a reported basis, or 4.4 percent on an
operational basis.
-- Global Botox Cosmetic net revenues were $687 million, a decrease of
4.2 percent on a reported basis, or 3.4 percent on an operational
basis.
-- Global Juvederm net revenues were $279 million, a decrease of 16.3
percent on a reported basis, or 15.1 percent on an operational
basis.
-- On a GAAP basis, the gross margin ratio in the fourth quarter was 70.9
percent. The adjusted gross margin ratio was 83.8 percent.
-- On a GAAP basis, selling, general and administrative (SG&A) expense was
25.5 percent of net revenues. The adjusted SG&A expense was 23.6 percent
of net revenues.
-- On a GAAP basis, research and development (R&D) expense was 44.9 percent
of net revenues. The adjusted R&D expense was 15.1 percent of net
revenues.
-- Acquired IPR&D and milestones expense was 10.4 percent of net revenues.
-- On a GAAP basis, the operating margin in the fourth quarter was negative
9.9 percent. The adjusted operating margin was 34.7 percent.
-- Net interest expense was $610 million.
-- On a GAAP basis, the tax rate in the quarter was 99.0 percent. The
adjusted tax rate was 20.2 percent.
-- Diluted loss per share in the fourth quarter was $0.02 on a GAAP basis,
inclusive of the recent partial intangible asset impairment charge
related to emraclidine. Adjusted diluted EPS, excluding specified items,
was $2.16. These results include an unfavorable impact of $0.88 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 the European Commission (EC) granted marketing
authorization for Elahere (mirvetuximab soravtansine) for the treatment
of adult patients with folate receptor-alpha (FR ) positive,
platinum-resistant high grade serous epithelial ovarian, fallopian tube
or primary peritoneal cancer who have received one to three prior
systemic treatment regimens. Elahere is the first novel therapy approved
in the European Union (EU) specifically for patients with FR positive,
platinum-resistant ovarian cancer.
-- At the American Society of Hematology (ASH) Annual Meeting, AbbVie
announced updated clinical trial results that showed Epkinly
(epcoritamab) combination therapy demonstrated high response rates in
adult patients with relapsed or refractory (r/r) follicular lymphoma
(FL). The company also announced new results from two ongoing clinical
trials which showed Epkinly induced durable complete responses as
monotherapy and combination treatment in patients with diffuse large
B-cell lymphoma (DLBCL). Epkinly is being co-developed by AbbVie and
Genmab.
-- AbbVie and EvolveImmune Therapeutics, an immuno-oncology company
developing next-generation biotherapeutics to overcome the therapeutic
challenges of cancer cell resistance to current immunotherapies,
announced a collaboration and option-to-license agreement to develop
multispecific biologics for multiple targets in oncology. The discovery
partnership will leverage AbbVie's oncology expertise and EvolveImmune's
T-cell engager platform to develop novel antibody-based therapies for
solid and hematologic malignancies.
-- AbbVie and Simcere Zaiming announced a partnership to develop a novel
trispecific antibody candidate in multiple myeloma (MM). This
option-to-license agreement will develop SIM0500, an investigational new
drug candidate that is currently in Phase 1 clinical trials in patients
with r/r MM.
-- AbbVie and Neomorph announced a collaboration and license agreement that
will leverage AbbVie's drug development expertise and Neomorph's leading
molecular glue discovery platform to develop novel molecular glue
degraders for multiple targets across oncology and immunology.
-- AbbVie announced that it completed its acquisition of Nimble
Therapeutics, strengthening AbbVie's pipeline and R&D capabilities. The
transaction includes Nimble's lead asset, an investigational oral
peptide IL23R inhibitor in preclinical development for the treatment of
psoriasis (PsO) as well as Nimble's peptide synthesis, screening, and
optimization platform used to help drive rapid discovery and
optimization of peptide candidates for a range of targets.
-- AbbVie announced positive topline results from its pivotal Phase 3
TEMPO-2 trial evaluating tavapadon as a flexible-dose monotherapy in
early Parkinson's disease (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. Tavapadon has demonstrated positive results across all
three Phase 3 TEMPO trials and AbbVie remains on track to submit a New
Drug Application (NDA) to the U.S. Food and Drug Administration (FDA)
later this year.
-- AbbVie announced that its two Phase 2 EMPOWER trials investigating
emraclidine as a once-daily, oral monotherapy treatment for adults with
schizophrenia who are experiencing an acute exacerbation of psychotic
symptoms, did not meet their primary endpoint of showing a statistically
significant reduction (improvement) in the change from baseline in the
Positive and Negative Syndrome Scale (PANSS) total score compared to the
placebo group at week 6. Following the results of these trials, AbbVie
began an evaluation of the emraclidine intangible asset for impairment
which resulted in a significant decrease in the estimated future cash
flows for the product. Based on the revised cash flows, the company
recorded a non-cash after-tax intangible asset impairment charge of $3.5
billion. AbbVie continues to evaluate information with respect to the
Cerevel-related clinical development programs and will monitor the
remaining intangible assets of $3.6 billion.
-- AbbVie announced that it completed its acquisition of Aliada
Therapeutics. The transaction strengthens AbbVie's neuroscience pipeline
and R&D capabilities with the addition of a potential best-in-class
disease-modifying therapy for Alzheimer's disease (AD), ALIA-1758, and
novel blood-brain barrier (BBB)-crossing technology.
Full-Year 2025 Outlook
AbbVie is issuing its adjusted diluted EPS guidance for the full-year 2025 of $12.12 to $12.32. The company's 2025 adjusted diluted EPS guidance excludes any impact from acquired IPR&D and milestones that may be incurred during 2025, 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 $31 billion, an increase of approximately $4 billion compared to previous guidance for combined revenues of more than $27 billion in 2027. This guidance assumes Skyrizi revenues of more than $20 billion and Rinvoq revenues of more than $11 billion in 2027.
AbbVie is also updating its outlook for aesthetics revenues. The company now expects a high single-digit compound annual revenue growth rate for aesthetics through 2029. This guidance assumes 2025 as the base year in the compound annual growth rate calculation.
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 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.
Media: Investors:
Gabby Tarbert Liz Shea
(224) 244-0111 (847)
935-2211
Todd Bosse
(847)
936-1182
Jeffrey Byrne
(847)
938-2923
AbbVie Inc.
Key Product Revenues
Quarter Ended December 31, 2024
(Unaudited)
% Change vs. 4Q23
Net Revenues (in millions) Reported Operationala
U.S. Int'l. Total U.S. Int'l. Total Int'l. Total
---
NET REVENUES $11,734 $3,368 $15,102 5.6 % 5.6 % 5.6 % 7.8 % 6.1 %
Immunology 5,905 1,389 7,294 2.2 17.8 4.9 20.2 5.3
Humira 1,246 436 1,682 (54.5) (22.7) (49.1) (20.5) (48.7)
Skyrizi 3,312 466 3,778 57.3 61.1 57.7 62.4 57.9
Rinvoq 1,347 487 1,834 45.0 49.5 46.2 53.1 47.1
Oncology 1,102 589 1,691 13.4 9.4 12.0 11.8 12.9
Imbruvicab 625 223 848 (8.6) 1.2 (6.2) 1.2 (6.2)
Venclexta 313 342 655 13.0 9.3 11.0 13.2 13.0
Elahere 146 2 148 n/m n/m n/m n/m n/m
Epkinlyc 18 22 40 48.9 >100.0 >100.0 >100.0 >100.0
Aesthetics 839 459 1,298 (5.0) (5.6) (5.2) (3.2) (4.4)
Botox Cosmetic 429 258 687 (5.2) (2.5) (4.2) (0.3) (3.4)
Juvederm Collection 120 159 279 (22.5) (10.9) (16.3) (8.7) (15.1)
Other Aesthetics 290 42 332 5.2 (2.3) 4.2 1.5 4.7
Neuroscience 2,210 299 2,509 18.8 28.4 19.8 29.3 19.9
Botox Therapeutic 730 143 873 12.4 13.2 12.5 16.3 13.0
Vraylar 922 2 924 17.1 25.8 17.1 26.4 17.1
Duodopa 24 84 108 2.8 (8.1) (5.8) (9.7) (7.0)
Ubrelvy 296 7 303 28.9 65.3 29.6 66.2 29.6
Qulipta 186 15 201 65.7 >100.0 76.4 >100.0 76.2
Other Neuroscience 52 48 100 (11.7) >100.0 50.9 >100.0 50.4
Eye Care 358 288 646 12.8 7.3 10.2 9.8 11.4
Ozurdex 36 84 120 (3.2) 3.0 1.1 3.5 1.4
Lumigan/Ganfort 58 61 119 83.9 0.9 29.4 2.2 30.2
Alphagan/Combigan 41 37 78 33.6 6.8 19.2 10.2 21.0
Restasis 102 12 114 (13.7) 14.9 (11.3) 19.7 (10.9)
Other Eye Care 121 94 215 20.9 15.4 18.4 20.3 20.6
Other Key Products 748 164 912 (3.8) (14.1) (5.8) (13.9) (5.8)
Mavyret 137 154 291 7.8 (15.4) (5.8) (15.1) (5.6)
Creon 388 388 3.3 n/m 3.3 n/m 3.3
Linzess/Constella 223 10 233 (18.7) 11.0 (17.8) 10.3 (17.8)
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, 2024
(Unaudited)
% Change vs. 12M23
Net Revenues (in millions) Reported Operationala
U.S. Int'l. Total U.S. Int'l. Total Int'l. Total
---
NET REVENUES $43,029 $13,305 $56,334 2.7 % 7.0 % 3.7 % 11.1 % 4.6 %
Immunology 21,487 5,195 26,682 (1.2) 18.1 2.1 23.1 2.9
Humira 7,142 1,851 8,993 (41.3) (17.5) (37.6) (13.2) (36.9)
Skyrizi 10,086 1,632 11,718 49.3 61.6 50.9 65.4 51.4
Rinvoq 4,259 1,712 5,971 50.8 49.6 50.4 57.0 52.5
Oncology 4,219 2,336 6,555 11.7 9.3 10.8 12.5 12.0
Imbruvicab 2,448 899 3,347 (8.1) (3.5) (6.9) (3.5) (6.9)
Venclexta 1,234 1,349 2,583 13.5 12.3 12.9 18.0 15.9
Elaherec 477 2 479 n/m n/m n/m n/m n/m
Epkinlyd 60 86 146 >100.0 >100.0 >100.0 >100.0 >100.0
Aesthetics 3,269 1,907 5,176 0.6 (6.7) (2.2) (2.5) (0.6)
Botox Cosmetic 1,682 1,038 2,720 0.7 2.7 1.4 6.7 2.9
Juvederm Collection 469 708 1,177 (9.6) (17.6) (14.6) (13.4) (12.0)
Other Aesthetics 1,118 161 1,279 5.5 (7.1) 3.7 (1.0) 4.6
Neuroscience 7,907 1,092 8,999 16.5 17.7 16.6 20.1 16.9
Botox Therapeutic 2,718 565 3,283 9.8 9.8 9.8 14.0 10.5
Vraylar 3,260 7 3,267 18.4 57.8 18.4 58.6 18.4
Duodopa 96 351 447 (1.8) (5.3) (4.6) (5.4) (4.7)
Ubrelvy 981 25 1,006 22.1 >100.0 23.4 >100.0 23.4
Qulipta 628 30 658 55.3 >100.0 61.3 >100.0 61.3
Other Neuroscience 224 114 338 (11.6) >100.0 22.4 >100.0 22.7
Eye Care 1,064 1,178 2,242 (15.3) 1.5 (7.2) 5.2 (5.4)
Ozurdex 138 356 494 (4.1) 8.3 4.5 10.7 6.2
Lumigan/Ganfort 187 242 429 7.5 (6.4) (0.9) (3.9) 0.6
Alphagan/Combigan 95 153 248 (21.8) 1.5 (8.8) 7.6 (5.4)
Restasis 172 52 224 (55.2) (3.0) (48.7) 2.1 (48.1)
Other Eye Care 472 375 847 8.9 1.5 5.5 6.1 7.6
Other Key Products 2,894 754 3,648 (3.5) (6.5) (4.2) (3.9) (3.7)
Mavyret 595 716 1,311 (9.7) (7.2) (8.3) (4.5) (6.9)
Creon 1,383 1,383 9.1 n/m 9.1 n/m 9.1
Linzess/Constella 916 38 954 (14.6) 7.5 (13.9) 7.2 (13.9)
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) Fourth Quarter Twelve Months
Ended December 31 Ended December 31
2024 2023 2024 2023
Net revenues $15,102 $14,301 $56,334 $54,318
Cost of products sold 4,396 5,704 16,904 20,415
Selling, general and administrative 3,855 3,193 14,752 12,872
Research and development 6,774 1,927 12,791 7,675
Acquired IPR&D and milestones 1,574 282 2,757 778
Other operating income, net (7) (7) (179)
Total operating costs and expenses 16,592 11,106 47,197 41,561
Operating earnings (loss) (1,490) 3,195 9,137 12,757
Interest expense, net 610 378 2,160 1,684
Net foreign exchange loss 19 49 21 146
Other expense, net 150 1,556 3,240 4,677
Earnings (loss) before income tax expense (2,269) 1,212 3,716 6,250
Income tax expense (benefit) (2,246) 388 (570) 1,377
Net earnings (loss) (23) 824 4,286 4,873
Net earnings (loss) attributable to noncontrolling interest (1) 2 8 10
Net earnings (loss) attributable to AbbVie Inc. $(22) $822 $4,278 $4,863
Diluted earnings (loss) per share attributable to AbbVie Inc. $(0.02) $0.46 $2.39 $2.72
Adjusted diluted earnings per sharea $2.16 $2.79 $10.12 $11.11
Weighted-average diluted shares outstanding 1,769 1,772 1,773 1,773
Adjusted weighted-average diluted shares outstandinga 1,773 1,772 1,773 1,773
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. Due to the GAAP net loss in the fourth quarter ended December 31, 2024, certain shares issuable under
stock-based compensation plans that were dilutive on a non-GAAP basis were excluded from the computation of GAAP diluted EPS because the
effects would have been antidilutive.
AbbVie Inc.
Reconciliation of GAAP Reported to Non-GAAP Adjusted Information
(Unaudited)
1. Specified items impacted results as follows:
Quarter Ended December 31, 2024
(in millions, except per share data)
Earnings (Loss) Diluted
Pre-tax After-taxa
EPS
As reported (GAAP) $(2,269) $(22) $(0.02)
Adjusted for specified items:
Intangible asset amortization 1,896 1,607 0.90
Intangible asset impairment 4,476 3,512 1.98
Change in fair value of contingent consideration 279 271 0.15
Litigation matters 173 136 0.08
Income tax items - (1,869) (1.05)
Other 258 209 0.12
As adjusted (non-GAAP) $4,813 $3,844 $2.16
a Represents net earnings (loss) attributable to AbbVie Inc.
Intangible asset impairment reflects a partial after-tax impairment charge of $3.5 billion related to the emraclidine intangible asset
acquired as part of the Cerevel Therapeutics acquisition. Income tax items primarily reflect an income tax benefit related to the
settlement of income tax examinations, partially offset by changes in income tax reserves.
Reported GAAP earnings and adjusted non-GAAP earnings for the three months ended December 31, 2024 included acquired
IPR&D and milestones expense of $1.6 billion on a pre-tax and after-tax basis, representing an unfavorable impact of $0.88 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, 2024
(in millions) Cost of SG&A R&D Other Other
products operating expense,
sold income, net
net
As reported (GAAP) $4,396 $3,855 $6,774 $(7) $150
Adjusted for specified items:
Intangible asset amortization (1,896)
Intangible asset impairment - (4,476)
Change in fair value of contingent consideration - (279)
Litigation matters - (173)
Other (47) (121) (25) 7 (72)
As adjusted (non-GAAP) $2,453 $3,561 $2,273
$ - $(201)
3. The adjusted tax rate for the fourth quarter of 2024 was 20.2 percent, as detailed below:
Quarter Ended December 31, 2024
(dollars in millions) Pre-tax Income taxes Tax
rate
earnings
(loss)
As reported (GAAP) $(2,269) $(2,246) 99.0 %
Specified items 7,082 3,216 45.4 %
As adjusted (non-GAAP) $4,813 $970 20.2 %
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 on an 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 SG&A R&D Interest Other
products expense, expense,
sold net 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 Income taxes Tax
rate
earnings
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:
Twelve Months Ended December 31, 2024
(in millions, except per share data)
Earnings Diluted
Pre-tax After-taxa
EPS
As reported (GAAP) $3,716 $4,278 $2.39
Adjusted for specified items:
Intangible asset amortization 7,622 6,461 3.63
Intangible asset impairment 4,476 3,512 1.98
Acquisition and integration costs 1,061 978 0.55
Change in fair value of contingent consideration 3,771 3,673 2.07
Litigation matters 910 721 0.41
Income tax items - (1,819) (1.02)
Other 256 197 0.11
As adjusted (non-GAAP) $21,812 $18,001 $10.12
a Represents net earnings attributable to AbbVie Inc.
Intangible asset impairment reflects a partial after-tax impairment charge of $3.5 billion related to the emraclidine intangible asset
acquired as part of the Cerevel Therapeutics acquisition. Acquisition and integration costs primarily reflect costs related to the
ImmunoGen and Cerevel Therapeutics acquisitions. Income tax items primarily reflect an income tax benefit related to the
settlement of income tax examinations, partially offset by changes in income tax reserves. Litigation matters primarily include
charges related to actual and potential settlements of litigation.
Reported GAAP earnings and adjusted non-GAAP earnings for the twelve months ended December 31, 2024 included acquired
IPR&D and milestones expense of $2.8 billion on a pre-tax and $2.7 billion on an after-tax basis, representing an unfavorable
impact of $1.52 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, 2024
(in millions) Cost of SG&A R&D Other Interest Other
products operating expense, expense,
sold income, net net
net
As reported (GAAP) $16,904 $14,752 $12,791 $(7) $2,160 $3,240
Adjusted for specified items:
Intangible asset amortization (7,622)
Intangible asset impairment - (4,476)
Acquisition and integration costs (225) (554) (258) (24)
Change in fair value of contingent consideration - (3,771)
Litigation matters - (910)
Other (110) (54) (1) 7 (98)
As adjusted (non-GAAP) $8,947 $13,234 $8,056
$ - $2,136 $(629)
3. The adjusted tax rate for the full-year 2024 was 17.4 percent, as detailed below:
Twelve Months Ended December 31, 2024
(dollars in millions) Pre-tax Income taxes Tax rate
earnings
As reported (GAAP) $3,716 $(570) (15.3) %
Specified items 18,096 4,373 24.2 %
As adjusted (non-GAAP) $21,812 $3,803 17.4 %
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 SG&A R&D Other Interest Other
products operating expense, expense,
sold income, net net
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 Income taxes Tax
rate
earnings
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 %
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SOURCE AbbVie
