ABBV
Abbvie INC
NYSE
8-K: AbbVie Reports Strong Q3 2024 Results, Raises Full-Year Guidance and Dividend
Sentiment:
Quarterly Report
30 October 2024 7:43 AM
AbbVie announced its third-quarter 2024 financial results, showcasing revenue growth and increased adjusted earnings per share, while also raising its full-year guidance and dividend.
Better than expected
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.
Summary
- AbbVie reported a third-quarter diluted EPS of $0.88 on a GAAP basis, a decrease of 12.0 percent, and an adjusted diluted EPS of $3.00, an increase of 1.7 percent.
- The results include an unfavorable impact of $0.04 per share related to acquired IPR&D and milestones expense.
- Net revenues for the third quarter were $14.460 billion, a 3.8 percent increase on a reported basis and a 4.9 percent increase on an operational basis.
- The immunology portfolio generated $7.046 billion in global net revenues, a 3.9 percent increase on a reported basis and a 4.8 percent increase on an operational basis.
- Humira global net revenues were $2.227 billion, a decrease of 37.2 percent on a reported basis.
- Skyrizi global net revenues were $3.205 billion, a 50.8 percent increase on a reported basis.
- Rinvoq global net revenues were $1.614 billion, a 45.3 percent increase on a reported basis.
- The oncology portfolio saw global net revenues of $1.687 billion, an 11.6 percent increase on a reported basis and a 13.0 percent increase on an operational basis.
- The neuroscience portfolio generated $2.363 billion in global net revenues, a 15.6 percent increase on a reported basis and a 16.0 percent increase on an operational basis.
- The aesthetics portfolio had global net revenues of $1.239 billion, a decrease of 0.1 percent on a reported basis, but an increase of 1.8 percent on an operational basis.
- AbbVie raised its 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.
- The company announced a 5.8 percent dividend increase for 2025, with the new dividend of $1.64 per share payable in February 2025.
Sentiment
Score: 8
Explanation: The sentiment is positive due to strong revenue growth in key areas, successful acquisitions, and an increased dividend. However, the decline in Humira revenue and some weakness in the aesthetics portfolio temper the overall outlook.
Positives
- AbbVie's adjusted diluted EPS increased by 1.7 percent year-over-year, reaching $3.00.
- Net revenues grew by 3.8 percent on a reported basis, reaching $14.460 billion.
- Skyrizi and Rinvoq showed strong growth, with revenue increases of 50.8 percent and 45.3 percent respectively.
- The neuroscience portfolio experienced a significant 15.6 percent increase in net revenues.
- The company successfully acquired Cerevel and Aliada, enhancing its pipeline and technology.
- AbbVie raised its full-year adjusted diluted EPS guidance, indicating confidence in future performance.
- The dividend was increased by 5.8 percent, demonstrating a commitment to returning value to shareholders.
- Skyrizi received European Commission approval for ulcerative colitis, expanding its market reach.
- The company's oncology portfolio saw an 11.6 percent increase in revenue.
Negatives
- GAAP diluted EPS decreased by 12.0 percent to $0.88.
- Humira net revenues decreased by 37.2 percent on a reported basis, reflecting the impact of biosimilar competition.
- The aesthetics portfolio saw a slight decrease of 0.1 percent in net revenues on a reported basis.
- Juvederm net revenues decreased by 19.7 percent on a reported basis.
- The results include an unfavorable impact of $0.04 per share related to acquired IPR&D and milestones expense.
- The company's GAAP operating margin was 26.5 percent, lower than the adjusted operating margin of 46.7 percent.
Risks
- The decline in Humira revenue due to biosimilar competition poses a significant risk to overall revenue.
- Acquired IPR&D and milestones expenses continue to negatively impact earnings per share.
- The aesthetics portfolio is experiencing some headwinds, with a slight decrease in reported revenue.
- The company faces risks related to intellectual property, competition, and regulatory changes.
- The company's forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially.
Future Outlook
AbbVie raised its full-year 2024 adjusted diluted EPS guidance to $10.90 $10.94. The company expects to close the acquisition of Aliada Therapeutics in the fourth quarter of 2024. Topline results from the TEMPO-2 trial for tavapadon are expected by the end of 2024.
Management Comments
- Robert A. Michael, chief executive officer, stated, 'We delivered another quarter of strong commercial execution and significant pipeline progress.'
- He also mentioned, '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.'
Industry Context
The results reflect the ongoing shift in the pharmaceutical industry, with companies like AbbVie navigating the impact of biosimilar competition on established products like Humira while focusing on growth through new product launches and strategic acquisitions. The company's focus on immunology, oncology, neuroscience, and aesthetics aligns with key growth areas in the healthcare sector.
Comparison to Industry Standards
- AbbVie's performance in the immunology space, particularly with Skyrizi and Rinvoq, is strong compared to competitors like Johnson & Johnson and Novartis, who also have significant immunology portfolios.
- The decline in Humira revenue is consistent with industry trends as biosimilars erode market share of established biologics, similar to what has been seen with other blockbuster drugs.
- The growth in AbbVie's neuroscience portfolio, especially with Vraylar and Botox Therapeutic, positions them well against companies like Eli Lilly and Biogen, who are also investing heavily in this area.
- The acquisition of Cerevel is similar to other large pharmaceutical companies acquiring smaller biotech firms to bolster their pipelines, such as Pfizer's acquisition of Seagen.
- The dividend increase of 5.8 percent is in line with other large pharmaceutical companies that prioritize returning value to shareholders, such as Merck and Bristol Myers Squibb.
Stakeholder Impact
- Shareholders will benefit from the increased dividend and the potential for long-term growth.
- Employees may see opportunities for growth and development due to the company's expansion.
- Customers will have access to new and innovative treatments.
- Suppliers may see increased business opportunities.
- Creditors will be reassured by the company's strong financial performance.
Next Steps
- AbbVie will continue to focus on the commercialization of Skyrizi and Rinvoq.
- The company will integrate Cerevel and Aliada into its operations.
- AbbVie will submit full results from the TEMPO-1 study for tavapadon at future medical meetings and use them to support regulatory submissions.
- The company will continue to develop Botox Cosmetic treatment for MMP in additional global markets.
- AbbVie will continue to advance its pipeline of innovative medicines.
Key Dates
- October 30, 2024: Date of the earnings report and press release.
- September 30, 2024: End of the third quarter for which financial results are reported.
- February 14, 2025: Date the increased dividend is payable.
- January 15, 2025: Shareholders of record date for the increased dividend.
Keywords
AbbVie, Financial Results, Third Quarter, EPS, Revenue, Immunology, Oncology, Neuroscience, Aesthetics, Humira, Skyrizi, Rinvoq, Acquisition, Dividend, Guidance
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.
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.
- The company also borrowed and repaid $5.0 billion under a term loan credit agreement in connection with these acquisitions.
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.
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
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.
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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