ABBV
Abbvie INC
NYSE
8-K: AbbVie Reports Strong First-Quarter 2025 Results, Raises Full-Year EPS Guidance
Sentiment:
Quarterly Report
25 April 2025 7:48 AM
AbbVie's first-quarter 2025 results exceeded expectations, driven by strong performance in its immunology and neuroscience portfolios, leading to an increase in the company's full-year adjusted diluted EPS guidance.
Better than expected
AbbVie's first-quarter results exceeded expectations, leading to an increase in the company's full-year adjusted diluted EPS guidance.
Summary
- AbbVie announced its financial results for the first quarter ended March 31, 2025.
- Worldwide net revenues reached $13.343 billion, an 8.4% increase on a reported basis and a 9.8% increase on an operational basis.
- The immunology portfolio generated $6.264 billion in net revenues, a 16.6% increase on a reported basis and an 18.1% increase on an operational basis, with Skyrizi and Rinvoq as key growth drivers.
- The neuroscience portfolio saw net revenues of $2.282 billion, a 16.1% increase on a reported basis and a 17.0% increase on an operational basis, driven by Vraylar and Botox Therapeutic.
- The oncology portfolio's net revenues were $1.633 billion, a 5.8% increase on a reported basis and a 7.5% increase on an operational basis, with Elahere showing significant growth.
- The aesthetics portfolio experienced a decrease, with net revenues of $1.102 billion, an 11.7% decrease on a reported basis and a 10.2% decrease on an operational basis.
- First-quarter diluted EPS was $0.72 on a GAAP basis, while adjusted diluted EPS was $2.46, which includes an unfavorable impact of $0.13 per share related to acquired IPR&D and milestones expense.
- AbbVie is raising its adjusted diluted EPS guidance for the full year 2025 from $11.99 $12.19 to $12.09 $12.29.
Sentiment
Score: 8
Explanation: The document presents a positive outlook with strong financial results and increased EPS guidance. While there are some challenges, such as the decline in Humira sales and the aesthetics portfolio, the overall tone is optimistic due to the growth in other key areas and strategic investments.
Positives
- Strong growth in the immunology portfolio, particularly Skyrizi and Rinvoq, is driving overall revenue growth.
- The neuroscience portfolio is also performing well, with Vraylar and Botox Therapeutic contributing significantly.
- AbbVie is expanding its pipeline through collaborations and licensing agreements, such as the partnership with Xilio Therapeutics and Gubra.
- The company is receiving regulatory approvals for new indications, such as Rinvoq for giant cell arteritis in the EU and Emblaveo for complicated intra-abdominal infections in the US.
- AbbVie is investing in training and education for aesthetics providers through the Allergan Medical Institute.
- The company is entering the obesity field through a licensing agreement with Gubra to develop a long-acting amylin analog.
Negatives
- Humira's global net revenues decreased significantly by 50.6% due to biosimilar competition.
- The aesthetics portfolio experienced a decline in net revenues, with Botox Cosmetic and Juvederm both showing decreases.
- The adjusted diluted EPS includes an unfavorable impact of $0.13 per share related to acquired IPR&D and milestones expense.
Risks
- Challenges to intellectual property and competition from other products could impact AbbVie's revenue.
- Difficulties inherent in the research and development process may delay or prevent the approval of new drugs.
- Adverse litigation or government action could negatively affect AbbVie's business.
- Changes to laws and regulations applicable to the pharmaceutical industry could create uncertainty.
- Global macroeconomic factors, such as economic downturns, international conflict, and trade disputes, could impact AbbVie's operations.
- The company's 2025 adjusted diluted EPS guidance excludes any impact from acquired IPR&D and milestones that may be incurred beyond the first quarter of 2025, as both cannot be reliably forecasted.
Future Outlook
AbbVie is raising its adjusted diluted EPS guidance for the full year 2025 from $11.99 $12.19 to $12.09 $12.29, which includes an unfavorable impact of $0.13 per share related to acquired IPR&D and milestones expense incurred year-to-date through the first quarter 2025.
Management Comments
- AbbVie's first-quarter results were well ahead of our expectations and reflect an excellent start to the year, said Robert A. Michael, chief executive officer, AbbVie.
- The fundamentals of our business are strong and we continue to bolster our outlook with pipeline advancements and strategic investments.
- Based on the progress we are making, AbbVie is well positioned for the long term.
Industry Context
AbbVie's performance reflects the ongoing shift in the pharmaceutical industry towards specialized therapies, particularly in immunology and neuroscience. The company's strategic focus on these areas, along with its expansion into new markets like obesity, positions it to compete effectively in the evolving healthcare landscape.
Comparison to Industry Standards
- AbbVie's growth in Skyrizi and Rinvoq is outpacing competitors in the immunology space, such as Amgen's Otezla and Eli Lilly's Taltz.
- The neuroscience portfolio's performance is comparable to that of other major players in the neurology market, such as Biogen and Novartis.
- The decline in Humira sales is consistent with the expected impact of biosimilar competition, similar to what other companies have experienced with their blockbuster drugs facing generic entry.
- AbbVie's move into the obesity market with GUB014295 puts it in direct competition with Novo Nordisk (Wegovy, Ozempic) and Eli Lilly (Zepbound, Mounjaro).
Stakeholder Impact
- Shareholders will benefit from the increased EPS guidance and strong financial performance.
- Employees will have opportunities for growth and development within the company.
- Customers will have access to innovative medicines and therapies.
- Suppliers will continue to partner with AbbVie to provide essential resources.
- Creditors will be reassured by AbbVie's financial stability and growth prospects.
Next Steps
- AbbVie will host an investor conference call to discuss the first-quarter performance.
- The company will continue to develop and commercialize its existing portfolio of drugs.
- AbbVie will pursue new collaborations and licensing agreements to expand its pipeline.
- The company will focus on obtaining regulatory approvals for new indications and therapies.
- AbbVie will continue to invest in training and education for aesthetics providers.
Key Dates
- March 31, 2025: End of the first quarter for which financial results are reported.
- April 25, 2025: Date of the press release and 8-K filing announcing the first-quarter results.
- July 1, 2025: Robert A. Michael will assume the additional position of chairman of the board of directors.
Keywords
AbbVie, financial results, first quarter 2025, EPS guidance, immunology, neuroscience, oncology, aesthetics, Skyrizi, Rinvoq, Humira, Vraylar, Botox, Elahere
ABBV
Abbvie INC
NYSE
Sector: TBD
Filings with Classifications
Better than expected
9 May 2025 1:24 PM
Quarterly Report
- The company reported an 8% increase in net revenues on a reported basis and a 10% increase on a constant currency basis, indicating strong growth.
- 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.
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.
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
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.
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.
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.
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.
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.
- The company also borrowed and repaid $5.0 billion under a term loan credit agreement in connection with these acquisitions.
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.
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.
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.
Worse than expected
3 July 2024 2:07 PM
Earnings Guidance Update
- The company's earnings guidance for both the full year and the second quarter has been lowered due to a significant $937 million IPR&D expense.
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.
Delay expected
3 May 2024 11:04 AM
Quarterly Report
- The company made a decision to revise the research and development plan for AGN-151607, a novel investigational neurotoxin, which contributed to a delay in the estimated timing of regulatory approval.
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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