NORTH CHICAGO, Ill., April 27, 2023 /PRNewswire/ -- AbbVie (NYSE:ABBV) announced financial results for the first quarter ended March 31, 2023.
"This year is off to an excellent start, with first-quarter revenues and EPS ahead of our expectations, driven by strong commercial execution across all areas of our diversified portfolio," said Richard A. Gonzalez, chairman and chief executive officer, AbbVie. "These balanced results give us confidence to increase our full-year guidance and we see numerous opportunities for key assets to drive compelling long-term growth."
First-Quarter Results
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
Recent Events (Continued)
Full-Year 2023 Outlook
AbbVie is raising its adjusted diluted EPS guidance for the full year 2023 from $10.62 - $11.02 to $10.72 - $11.12, which includes an unfavorable impact of $0.08 per share related to acquired IPR&D and milestones expense incurred during the first quarter 2023. The company's 2023 adjusted diluted EPS guidance excludes any impact from acquired IPR&D and milestones that may be incurred beyond the first quarter of 2023, as both cannot be reliably forecasted.
About AbbVie
AbbVie's mission is to discover and deliver innovative medicines that solve serious health issues today and address the medical challenges of tomorrow. We strive to have a remarkable impact on people's lives across several key therapeutic areas: immunology, oncology, neuroscience, eye care, virology and gastroenterology, in addition to products and services across our Allergan Aesthetics portfolio. For more information about AbbVie, please visit us at www.abbvie.com. Follow @abbvie on Twitter, Facebook or LinkedIn.
Conference Call
AbbVie will host an investor conference call today at 8:00 a.m. Central time to discuss our first-quarter performance. The call will be webcast through AbbVie's Investor Relations website at investors.abbvie.com. An archived edition of the call will be available after 11:00 a.m. Central time.
Non-GAAP Financial Results
Financial results for 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 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 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. AbbVie undertakes no obligation, and specifically declines, to release publicly any revisions to forward-looking statements as a result of subsequent events or developments, except as required by law.
AbbVie Inc. Key Product Revenues Quarter Ended March 31, 2023 (Unaudited) |
|||||||||||||||
% Change vs. 1Q22 |
|||||||||||||||
Net Revenues (in millions) |
Reported |
Operationala |
|||||||||||||
U.S. |
Int'l. |
Total |
U.S. |
Int'l. |
Total |
Int'l. |
Total |
||||||||
NET REVENUES |
$9,201 |
$3,024 |
$12,225 |
(11.1) % |
(5.2) % |
(9.7) % |
0.9 % |
(8.3) % |
|||||||
Immunology |
4,536 |
1,051 |
5,587 |
(10.8) |
(0.6) |
(9.0) |
6.3 |
(7.8) |
|||||||
Humira |
2,948 |
593 |
3,541 |
(26.1) |
(20.3) |
(25.2) |
(14.8) |
(24.3) |
|||||||
Skyrizi |
1,139 |
221 |
1,360 |
45.9 |
38.5 |
44.7 |
47.7 |
46.3 |
|||||||
Rinvoq |
449 |
237 |
686 |
44.4 |
53.7 |
47.5 |
64.9 |
51.2 |
|||||||
Hematologic Oncology |
903 |
513 |
1,416 |
(18.2) |
(5.5) |
(14.0) |
(2.2) |
(12.9) |
|||||||
Imbruvicab |
638 |
240 |
878 |
(27.0) |
(19.7) |
(25.2) |
(19.7) |
(25.2) |
|||||||
Venclexta |
265 |
273 |
538 |
15.7 |
11.8 |
13.7 |
19.2 |
17.5 |
|||||||
Aesthetics |
777 |
523 |
1,300 |
(8.1) |
(1.1) |
(5.4) |
7.8 |
(2.0) |
|||||||
Botox Cosmetic |
409 |
250 |
659 |
(0.7) |
9.4 |
2.9 |
17.5 |
5.8 |
|||||||
Juvederm Collection |
122 |
233 |
355 |
(17.9) |
(10.9) |
(13.4) |
(1.4) |
(7.4) |
|||||||
Other Aesthetics |
246 |
40 |
286 |
(13.6) |
3.6 |
(11.5) |
12.7 |
(10.4) |
|||||||
Neuroscience |
1,463 |
232 |
1,695 |
15.0 |
7.5 |
13.9 |
15.0 |
15.0 |
|||||||
Botox Therapeutic |
587 |
132 |
719 |
17.5 |
15.5 |
17.1 |
24.2 |
18.7 |
|||||||
Vraylar |
560 |
1 |
561 |
31.2 |
n/m |
31.3 |
n/m |
31.3 |
|||||||
Duodopa |
25 |
93 |
118 |
6.5 |
(4.3) |
(2.2) |
1.7 |
2.6 |
|||||||
Ubrelvy |
150 |
2 |
152 |
9.0 |
n/m |
10.0 |
n/m |
10.0 |
|||||||
Qulipta |
66 |
— |
66 |
>100.0 |
n/m |
>100.0 |
n/m |
>100.0 |
|||||||
Other Neuroscience |
75 |
4 |
79 |
(56.7) |
6.9 |
(55.2) |
12.6 |
(55.1) |
|||||||
Eye Care |
319 |
289 |
608 |
(35.7) |
5.0 |
(21.2) |
11.0 |
(19.0) |
|||||||
Ozurdex |
39 |
76 |
115 |
16.1 |
3.2 |
7.3 |
10.3 |
12.2 |
|||||||
Lumigan/Ganfort |
63 |
67 |
130 |
(6.8) |
(7.2) |
(7.0) |
(2.7) |
(4.7) |
|||||||
Alphagan/Combigan |
28 |
43 |
71 |
(59.4) |
16.9 |
(33.3) |
24.2 |
(30.8) |
|||||||
Restasis |
79 |
13 |
92 |
(66.5) |
20.4 |
(62.8) |
25.1 |
(62.6) |
|||||||
Other Eye Care |
110 |
90 |
200 |
22.9 |
10.3 |
16.9 |
16.3 |
19.8 |
|||||||
Other Key Products |
727 |
201 |
928 |
5.5 |
(7.4) |
2.4 |
(1.1) |
3.9 |
|||||||
Mavyret |
171 |
193 |
364 |
1.2 |
(8.1) |
(4.0) |
(1.8) |
(0.5) |
|||||||
Creon |
305 |
— |
305 |
6.3 |
n/m |
6.3 |
n/m |
6.3 |
|||||||
Linzess/Constella |
251 |
8 |
259 |
7.7 |
11.9 |
7.8 |
17.8 |
8.0 |
a |
"Operational" comparisons are presented at constant currency rates that reflect comparative local currency net revenues |
b |
Reflects profit sharing for Imbruvica international revenues. |
n/m = not meaningful |
AbbVie Inc. Consolidated Statements of Earnings (Unaudited) |
|||
(in millions, except per share data) |
First Quarter Ended March 31 |
||
2023 |
2022 |
||
Net revenues |
$ 12,225 |
$ 13,538 |
|
Cost of products sold |
3,986 |
4,052 |
|
Selling, general and administrative |
3,039 |
3,127 |
|
Research and development |
2,292 |
1,497 |
|
Acquired IPR&D and milestones |
150 |
145 |
|
Other operating income |
(10) |
— |
|
Total operating costs and expenses |
9,457 |
8,821 |
|
Operating earnings |
2,768 |
4,717 |
|
Interest expense, net |
454 |
539 |
|
Net foreign exchange loss |
35 |
25 |
|
Other expense (income), net |
1,804 |
(776) |
|
Earnings before income tax expense |
475 |
4,929 |
|
Income tax expense |
234 |
436 |
|
Net earnings |
241 |
4,493 |
|
Net earnings attributable to noncontrolling interest |
2 |
3 |
|
Net earnings attributable to AbbVie Inc. |
$ 239 |
$ 4,490 |
|
Diluted earnings per share attributable to AbbVie Inc. |
$ 0.13 |
$ 2.51 |
|
Adjusted diluted earnings per sharea |
$ 2.46 |
$ 3.16 |
|
Weighted-average diluted shares outstanding |
1,776 |
1,778 |
|
a Refer to the Reconciliation of GAAP Reported to Non-GAAP Adjusted Information for further details. |
AbbVie Inc. Reconciliation of GAAP Reported to Non-GAAP Adjusted Information (Unaudited) |
|||||||||
1. Specified items impacted results as follows: |
|||||||||
Quarter Ended March 31, 2023 |
|||||||||
(in millions, except per share data) |
Earnings |
Diluted |
|||||||
Pre-tax |
After-taxa |
EPS |
|||||||
As reported (GAAP) |
$ 475 |
$ 239 |
$ 0.13 |
||||||
Adjusted for specified items: |
|||||||||
Intangible asset amortization |
1,948 |
1,646 |
0.93 |
||||||
Intangible asset impairment |
710 |
629 |
0.35 |
||||||
Acquisition and integration costs |
61 |
55 |
0.03 |
||||||
Change in fair value of contingent consideration |
1,872 |
1,822 |
1.02 |
||||||
Other |
17 |
(6) |
— |
||||||
As adjusted (non-GAAP) |
$ 5,083 |
$ 4,385 |
$ 2.46 |
||||||
a Represents net earnings attributable to AbbVie Inc. |
|||||||||
Acquisition and integration costs primarily reflect integration costs related to the Allergan acquisition. |
|||||||||
Reported GAAP earnings and adjusted non-GAAP earnings for the three months ended March 31, 2023 included acquired IPR&D and milestones |
|||||||||
2. The impact of the specified items by line item was as follows: |
|||||||||
Quarter Ended March 31, 2023 |
|||||||||
(in millions) |
Cost of |
SG&A |
R&D |
Other |
Other |
||||
As reported (GAAP) |
$ 3,986 |
$ 3,039 |
$ 2,292 |
$ (10) |
$ 1,804 |
||||
Adjusted for specified items: |
|||||||||
Intangible asset amortization |
(1,948) |
— |
— |
— |
— |
||||
Intangible asset impairment |
(80) |
— |
(630) |
— |
— |
||||
Acquisition and integration costs |
(15) |
(44) |
(2) |
— |
— |
||||
Change in fair value of contingent consideration |
— |
— |
— |
— |
(1,872) |
||||
Other |
(12) |
(11) |
(3) |
10 |
(1) |
||||
As adjusted (non-GAAP) |
$ 1,931 |
$ 2,984 |
$ 1,657 |
$ — |
$ (69) |
||||
3. The adjusted tax rate for the first quarter of 2023 was 13.7 percent, as detailed below: |
|||||||||
Quarter Ended March 31, 2023 |
|||||||||
(dollars in millions) |
Pre-tax |
Income taxes |
Tax rate |
||||||
As reported (GAAP) |
$ 475 |
$ 234 |
49.3 % |
||||||
Specified items |
4,608 |
462 |
10.0 % |
||||||
As adjusted (non-GAAP) |
$ 5,083 |
$ 696 |
13.7 % |
AbbVie Inc. Reconciliation of GAAP Reported to Non-GAAP Adjusted Information (Unaudited) |
|||||||
1. Specified items impacted results as follows: |
|||||||
Quarter Ended March 31, 2022 |
|||||||
(in millions, except per share data) |
Earnings |
Diluted |
|||||
Pre-tax |
After-taxa |
EPS |
|||||
As reported (GAAP) |
$ 4,929 |
$ 4,490 |
$ 2.51 |
||||
Adjusted for specified items: |
|||||||
Intangible asset amortization |
1,855 |
1,565 |
0.88 |
||||
Acquisition and integration costs |
138 |
121 |
0.07 |
||||
Change in fair value of contingent consideration |
(748) |
(746) |
(0.42) |
||||
Litigation matters |
184 |
148 |
0.08 |
||||
Other |
64 |
63 |
0.04 |
||||
As adjusted (non-GAAP) |
$ 6,422 |
$ 5,641 |
$ 3.16 |
||||
a Represents net earnings attributable to AbbVie Inc. |
|||||||
Acquisition and integration costs reflect integration costs related to the Allergan acquisition. Other primarily includes restructuring charges associated |
|||||||
Reported GAAP earnings and adjusted non-GAAP earnings for the first quarter of 2022 included acquired IPR&D and milestones expense |
|||||||
2. The impact of the specified items by line item was as follows: |
|||||||
Quarter Ended March 31, 2022 |
|||||||
(in millions) |
Cost of |
SG&A |
R&D |
Other |
|||
As reported (GAAP) |
$ 4,052 |
$ 3,127 |
$ 1,497 |
$ (776) |
|||
Adjusted for specified items: |
|||||||
Intangible asset amortization |
(1,855) |
— |
— |
— |
|||
Acquisition and integration costs |
(34) |
(93) |
(11) |
— |
|||
Change in fair value of contingent consideration |
— |
— |
— |
748 |
|||
Litigation matters |
— |
(184) |
— |
— |
|||
Other |
(60) |
2 |
(6) |
— |
|||
As adjusted (non-GAAP) |
$ 2,103 |
$ 2,852 |
$ 1,480 |
$ (28) |
|||
3. The adjusted tax rate for the first quarter of 2022 was 12.1 percent, as detailed below: |
|||||||
Quarter Ended March 31, 2022 |
|||||||
(dollars in millions) |
Pre-tax |
Income taxes |
Tax rate |
||||
As reported (GAAP) |
$ 4,929 |
$ 436 |
8.8 % |
||||
Specified items |
1,493 |
342 |
22.9 % |
||||
As adjusted (non-GAAP) |
$ 6,422 |
$ 778 |
12.1 % |
SOURCE AbbVie
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