ABBV
Abbvie INC
NYSE
8-K: AbbVie Reports Mixed Q1 Results, Raises Full-Year EPS Guidance Amidst Leadership Transition
Sentiment:
Quarterly Report
26 April 2024 7:43 AM
AbbVie's first-quarter results show a mixed performance with increased revenue and GAAP EPS, but a decrease in adjusted EPS, alongside a leadership transition and raised full-year guidance.
Better than expected
The company raised its full-year adjusted diluted EPS guidance, indicating better than expected future performance.
First quarter results were well ahead of expectations, driven by excellent performance from the ex-Humira growth platform.
Summary
- AbbVie reported first-quarter 2024 net revenues of $12.310 billion, a 0.7% increase on a reported basis and 1.6% on an operational basis.
- The company's GAAP diluted earnings per share (EPS) was $0.77, a significant increase of 492.3%, while adjusted diluted EPS was $2.31, a decrease of 6.1%.
- These results include an unfavorable impact of $0.08 per share related to acquired IPR&D and milestones expense.
- Global net revenues from the immunology portfolio decreased by 3.9% on a reported basis, primarily due to Humira biosimilar competition, with Humira revenues declining by 35.9%.
- Skyrizi and Rinvoq showed strong growth, with revenues increasing by 47.6% and 59.3%, respectively.
- The oncology portfolio saw a 9.0% increase in global net revenues, driven by Venclexta, while Imbruvica revenues decreased by 4.5%.
- The neuroscience portfolio experienced a 15.9% increase in global net revenues, with strong performances from Botox Therapeutic and Vraylar.
- The aesthetics portfolio saw a 4.0% decrease in global net revenues, with declines in both Botox Cosmetic and Juvederm revenues.
- AbbVie successfully completed the acquisition of ImmunoGen, adding Elahere to its oncology portfolio.
- The company raised its 2024 adjusted diluted EPS guidance range from $10.97 $11.17 to $11.13 $11.33.
- Robert A. Michael will succeed Richard A. Gonzalez as CEO, effective July 1, 2024.
Sentiment
Score: 7
Explanation: The sentiment is positive due to the raised full-year guidance and strong performance in key growth areas like Skyrizi, Rinvoq, and neuroscience. However, the decline in Humira and aesthetics revenue, along with the decrease in adjusted EPS, tempers the overall positive outlook.
Positives
- AbbVie's total net revenues increased by 0.7% on a reported basis and 1.6% on an operational basis.
- GAAP diluted EPS saw a significant increase of 492.3% to $0.77.
- Skyrizi and Rinvoq demonstrated strong revenue growth, increasing by 47.6% and 59.3%, respectively.
- The neuroscience portfolio experienced a substantial 15.9% increase in revenue.
- The acquisition of ImmunoGen and its flagship cancer therapy, Elahere, was successfully completed.
- AbbVie raised its full-year adjusted diluted EPS guidance, indicating positive future expectations.
- Rinvoq showed positive results in Phase 3 trials for giant cell arteritis and atopic dermatitis.
- The FDA granted full approval for Elahere and priority review for Epkinly.
Negatives
- Adjusted diluted EPS decreased by 6.1% to $2.31.
- The immunology portfolio experienced a 3.9% decrease in revenue due to Humira biosimilar competition.
- Humira revenues declined significantly by 35.9%.
- The aesthetics portfolio saw a 4.0% decrease in revenue.
- Botox Cosmetic and Juvederm revenues decreased by 3.9% and 16.4%, respectively.
- Imbruvica revenues decreased by 4.5%.
Risks
- Continued biosimilar competition for Humira poses a significant risk to revenue.
- The aesthetics portfolio is experiencing a decline in revenue, which could impact overall performance.
- The company faces risks related to the integration of acquired companies, such as ImmunoGen.
- There are risks associated with the development and regulatory approval of new drugs.
- The company is exposed to risks related to changes in laws and regulations applicable to the pharmaceutical industry.
- The company is exposed to risks related to the proposed acquisition of Cerevel Therapeutics, including the possibility that the acquisition may not be consummated.
Future Outlook
AbbVie is raising its adjusted diluted EPS guidance for the full year 2024 from $10.97 $11.17 to $11.13 $11.33, which includes an unfavorable impact of $0.08 per share related to acquired IPR&D and milestones expense incurred during the first quarter 2024. The company's 2024 adjusted diluted EPS guidance excludes any impact from acquired IPR&D and milestones that may be incurred beyond the first quarter of 2024, as both cannot be reliably forecasted.
Management Comments
- Richard A. Gonzalez stated that AbbVie continues to demonstrate outstanding operational execution and delivered another quarter of strong results.
- Richard A. Gonzalez expressed pride in the organization built over the past 11 years.
- Robert A. Michael said that first quarter results were well ahead of expectations, driven by excellent performance from the ex-Humira growth platform.
- Robert A. Michael stated that based on strong results and significant momentum, they are raising the full-year outlook.
Industry Context
The results reflect the ongoing challenges faced by AbbVie due to biosimilar competition for Humira, a major revenue driver. The company is successfully diversifying its portfolio with strong growth in Skyrizi, Rinvoq, and the neuroscience segment. The acquisition of ImmunoGen and the development of new therapies like Elahere and Epkinly are strategic moves to strengthen its pipeline and future growth prospects. The leadership transition is a significant event, but the company is projecting confidence in its future performance.
Comparison to Industry Standards
- AbbVie's performance is mixed compared to industry standards. While the company has shown strong growth in specific areas, the decline in Humira revenue due to biosimilar competition is a significant challenge, similar to what other companies with blockbuster drugs facing generic competition have experienced.
- The growth of Skyrizi and Rinvoq is comparable to other successful launches of new immunology drugs by competitors like Eli Lilly (with Taltz and Olumiant) and Johnson & Johnson (with Tremfya and Stelara).
- The oncology portfolio's growth is in line with the industry trend of increasing focus on targeted therapies and antibody-drug conjugates, with Elahere being a key addition, similar to the strategies of companies like Seagen and Daiichi Sankyo.
- The neuroscience portfolio's growth is strong, reflecting the increasing demand for treatments in this area, similar to the success of companies like Biogen and Teva in the neurology space.
- The aesthetics portfolio's decline is a concern, as this is a competitive market with companies like Galderma and Merz also vying for market share. AbbVie's performance in this segment is below the industry average growth rate.
Stakeholder Impact
- Shareholders will be impacted by the raised full-year EPS guidance and the leadership transition.
- Employees will be affected by the leadership change and the ongoing integration of acquired companies.
- Patients will benefit from the development and commercialization of new therapies.
- Customers will be impacted by the performance of AbbVie's products and services.
- Suppliers and creditors will be affected by the company's financial performance and strategic decisions.
Next Steps
- AbbVie will continue to focus on the growth of its ex-Humira portfolio.
- The company will integrate ImmunoGen and Elahere into its oncology business.
- AbbVie will continue to develop and commercialize new therapies in immunology, oncology, neuroscience, and aesthetics.
- The leadership transition will be completed on July 1, 2024.
- AbbVie will host an investor conference call to discuss the first-quarter performance.
Key Dates
- February 12, 2024: Date of the ImmunoGen acquisition close, impacting Elahere revenue.
- March 31, 2024: End of the first quarter for which financial results are reported.
- April 26, 2024: Date of the press release announcing first-quarter financial results and leadership changes.
- July 1, 2024: Effective date for Robert A. Michael to become CEO and Richard A. Gonzalez to become executive chairman.
Keywords
AbbVie, Financial Results, Q1 2024, Humira, Skyrizi, Rinvoq, Elahere, Immunology, Oncology, Neuroscience, Aesthetics, EPS, Acquisition, Leadership Change
ABBV
Abbvie INC
NYSE
Sector: TBD
Filings with Classifications
Better than expected
9 May 2025 1:24 PM
Quarterly Report
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- Operating earnings reached $3.7 billion, with diluted earnings per share at $0.72, reflecting improved profitability.
- Key growth drivers included Skyrizi and Rinvoq in immunology, and Vraylar and Botox Therapeutic in neuroscience, demonstrating successful product performance.
Better than expected
25 April 2025 7:48 AM
Quarterly Report
- AbbVie's first-quarter results exceeded expectations, leading to an increase in the company's full-year adjusted diluted EPS guidance.
Worse than expected
3 April 2025 4:13 PM
8-K Filing
- The company's full-year adjusted diluted EPS guidance has been lowered from $12.12 $12.32 to $11.99 $12.19 due to the $248 million IPR&D expense in Q1 2025.
Better than expected
24 March 2025 4:28 PM
Proxy Statement
- AbbVie's 2024 results exceeded expectations with strong revenue growth and a robust R&D pipeline, indicating better-than-expected performance.
Capital raise
26 February 2025 5:04 PM
Debt Offering Announcement
- AbbVie completed an underwritten public offering of $4 billion in senior notes.
- The offering was registered under the Securities Act of 1933.
- The proceeds from the notes offering are likely to be used for general corporate purposes, including refinancing existing debt, funding acquisitions, and investing in research and development.
Capital raise
19 February 2025 9:22 AM
Debt Offering Announcement
- AbbVie is issuing $4 billion in senior notes.
- The offering includes notes due in 2028, 2030, 2035, and 2055.
- The company expects to receive approximately $3.98 billion in net proceeds.
Better than expected
18 February 2025 5:00 PM
SEC Form 4
- The vesting of performance-based awards suggests that the company exceeded its performance targets, leading to the release of these shares to the executive.
Delay expected
14 February 2025 1:17 PM
Annual Report (Form 10-K)
- AbbVie received a Complete Response Letter (CRL) from the FDA for the New Drug Application (NDA) for ABBV-951 for the treatment of motor fluctuations in adults with advanced Parkinson's disease.
Worse than expected
14 February 2025 1:17 PM
Annual Report (Form 10-K)
- Humira sales declined by 37% globally due to biosimilar competition, which is worse than expected.
Worse than expected
31 January 2025 7:42 AM
Quarterly Report
- The full-year diluted EPS decreased by 12.1% on a GAAP basis and 8.9% on an adjusted basis.
- The company experienced a diluted loss per share in the fourth quarter on a GAAP basis.
- The fourth-quarter results included a significant unfavorable impact from acquired IPR&D and milestones expense.
- The company recorded a non-cash after-tax intangible asset impairment charge of $3.5 billion related to emraclidine.
Worse than expected
10 January 2025 8:31 AM
8-K Filing
- The document details a $3.5 billion impairment charge due to failed clinical trials, indicating worse than expected results for the emraclidine program.
Worse than expected
6 January 2025 4:02 PM
Earnings Guidance Update
- The updated guidance includes a $1.6 billion charge for acquired IPR&D and milestones expense, which significantly reduces both Q4 and full-year adjusted diluted EPS compared to previous guidance.
Worse than expected
4 November 2024 2:19 PM
Quarterly Report
- The company's diluted earnings per share of $0.88 for the quarter and $2.41 for the nine months ended September 30, 2024 were negatively impacted by significant expenses related to amortization of intangible assets, changes in fair value of contingent consideration liabilities, acquisition and integration costs, and litigation matters.
- The company's operating cash flows decreased compared to the prior year due to the timing of working capital, higher contingent consideration payments and decreased results from operations driven by acquisition-related cash expenses.
Delay expected
4 November 2024 2:19 PM
Quarterly Report
- AbbVie received a Complete Response Letter from the FDA for the New Drug Application for ABBV-951 due to observations identified during inspection of a third-party manufacturer.
Better than expected
30 October 2024 7:43 AM
Quarterly Report
- The company raised its full-year adjusted diluted EPS guidance, indicating better than expected performance.
- The company's adjusted diluted EPS of $3.00 was better than the previous year's $2.95.
- The company's net revenues increased by 3.8 percent on a reported basis, indicating better than expected performance.
Worse than expected
3 October 2024 4:07 PM
Earnings Guidance Update
- The $82 million expense for acquired IPR&D and milestones will negatively impact both GAAP and adjusted non-GAAP diluted earnings per share by $0.04.
- The full-year and third quarter adjusted diluted EPS guidance ranges have been lowered to reflect this expense.
Worse than expected
7 August 2024 3:00 PM
Quarterly Report
- The company's earnings per share were negatively impacted by acquisition-related costs and amortization of intangible assets.
- Humira sales declined significantly due to biosimilar competition, which was worse than expected.
- Operating cash flows decreased compared to the prior year due to working capital timing and acquisition-related expenses.
Delay expected
7 August 2024 3:00 PM
Quarterly Report
- AbbVie received a Complete Response Letter from the FDA for ABBV-951 due to observations identified during inspection of a third-party manufacturer, delaying the potential approval of the drug.
Capital raise
7 August 2024 3:00 PM
Quarterly Report
- AbbVie issued $15 billion in senior notes to finance the acquisitions of ImmunoGen and Cerevel Therapeutics.
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Delay expected
25 July 2024 7:41 AM
Quarterly Report
- AbbVie received a Complete Response Letter (CRL) from the FDA for the New Drug Application (NDA) for ABBV-951, citing observations identified during inspection of a third-party manufacturer, which will delay the launch of the product.
Better than expected
25 July 2024 7:41 AM
Quarterly Report
- The company's second-quarter results exceeded expectations, driven by strong performance in its ex-Humira portfolio.
- AbbVie raised its full-year adjusted diluted EPS guidance, indicating better than previously anticipated financial performance.
Worse than expected
3 July 2024 2:07 PM
Earnings Guidance Update
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Delay expected
3 May 2024 11:04 AM
Quarterly Report
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Better than expected
3 May 2024 11:04 AM
Quarterly Report
- The diluted earnings per share significantly increased to $0.77 from $0.13 year-over-year, indicating better than expected profitability.
- Net earnings attributable to AbbVie Inc. were $1.369 billion, a substantial increase from $239 million in the first quarter of 2023, showing better than expected results.
Capital raise
3 May 2024 11:04 AM
Quarterly Report
- AbbVie issued $15 billion in senior notes to finance the acquisition of ImmunoGen and the proposed acquisition of Cerevel Therapeutics.
- The company borrowed and repaid $5.0 billion under a term loan credit agreement in February 2024.
Better than expected
26 April 2024 7:43 AM
Quarterly Report
- The company raised its full-year adjusted diluted EPS guidance, indicating better than expected future performance.
- First quarter results were well ahead of expectations, driven by excellent performance from the ex-Humira growth platform.
Worse than expected
3 April 2024 4:06 PM
Earnings Guidance Update
- The company's earnings per share guidance has been lowered due to a $164 million expense related to acquired IPR&D and milestones.
Capital raise
26 February 2024 5:08 PM
Debt Offering Announcement
- AbbVie is raising $15 billion through the issuance of senior notes.
- The notes are being sold to underwriters in a registered public offering.
- The proceeds will be used for specific purposes including acquisitions and debt repayment.
Worse than expected
12 February 2024 7:49 AM
Merger Announcement
- The acquisition is expected to be dilutive to AbbVie's EPS in 2024, with a $0.42 per share impact for the full year and $0.04 per share in the first quarter.
Worse than expected
2 February 2024 7:51 AM
Quarterly Report
- The full-year GAAP diluted EPS decreased by 59.0%, indicating worse than expected profitability.
- The overall net revenues decreased by 6.4% on a reported basis, showing worse than expected sales performance.
- Humira revenues experienced a substantial decline due to biosimilar competition, which was worse than expected.
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