ABBV
Abbvie INC
NYSE
8-K: AbbVie Reports Strong Second Quarter Results, Raises Full-Year EPS Guidance
Sentiment:
Quarterly Report
25 July 2024 7:41 AM
AbbVie's second-quarter results exceeded expectations, driven by strong performance in its ex-Humira portfolio, leading to an increase in the company's full-year adjusted diluted EPS guidance.
Better than expected
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
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.
Summary
- AbbVie announced its financial results for the second quarter of 2024, reporting a diluted EPS of $0.77 on a GAAP basis, a decrease of 32.5 percent, and an adjusted diluted EPS of $2.65, a decrease of 8.9 percent.
- These results include an unfavorable impact of $0.52 per share related to acquired IPR&D and milestones expense.
- The company's net revenues for the quarter were $14.462 billion, an increase of 4.3 percent on a reported basis and 5.6 percent on an operational basis.
- Global net revenues from the immunology portfolio were $6.971 billion, with Humira revenues at $2.814 billion, Skyrizi at $2.727 billion, and Rinvoq at $1.430 billion.
- The oncology portfolio generated $1.634 billion in net revenues, while the neuroscience portfolio brought in $2.162 billion.
- The aesthetics portfolio had net revenues of $1.390 billion.
- AbbVie has raised its 2024 adjusted diluted EPS guidance range from $10.61 $10.81 to $10.71 $10.91, which includes an unfavorable impact of $0.60 per share related to acquired IPR&D and milestones expense incurred year-to-date through the second quarter 2024.
Sentiment
Score: 8
Explanation: The sentiment is positive due to strong revenue growth in key areas, raised EPS guidance, and strategic acquisitions. However, the decline in Humira sales and the delay in ABBV-951 approval temper the overall optimism.
Positives
- AbbVie's business performed exceptionally well in the second quarter, exceeding expectations.
- The ex-Humira growth platform is showing significant momentum.
- Skyrizi and Rinvoq are experiencing strong revenue growth, offsetting the decline in Humira sales.
- The neuroscience portfolio is demonstrating robust growth.
- The company's pipeline is progressing well with recent acquisitions and regulatory approvals.
- The adjusted diluted EPS guidance for 2024 has been raised.
Negatives
- GAAP diluted EPS decreased by 32.5 percent compared to the same quarter last year.
- Adjusted diluted EPS decreased by 8.9 percent compared to the same quarter last year.
- Humira's global net revenues decreased by 29.8 percent on a reported basis.
- The company experienced an unfavorable impact of $0.52 per share related to acquired IPR&D and milestones expense in the second quarter.
- Juvederm net revenues decreased by 6.8 percent on a reported basis.
Risks
- The company faces risks related to the proposed acquisition of Cerevel Therapeutics, including the possibility that the acquisition may not be completed.
- There are risks associated with realizing the anticipated benefits of the proposed acquisition.
- The company faces challenges related to intellectual property, competition, and the research and development process.
- Adverse litigation or government action could impact the company's performance.
- Changes to laws and regulations applicable to the industry could pose risks.
Future Outlook
AbbVie is raising its adjusted diluted EPS guidance for the full year 2024 from $10.61 $10.81 to $10.71 $10.91, which includes an unfavorable impact of $0.60 per share related to acquired IPR&D and milestones expense incurred year-to-date through the second 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 second quarter of 2024, as both cannot be reliably forecasted.
Management Comments
- Our business continues to perform exceptionally well, with second quarter results meaningfully ahead of our expectations, said Robert A. Michael, chief executive officer, AbbVie.
- Based upon the significant momentum of our ex-Humira growth platform, our continued investments in the business and our pipeline progress, we are very well positioned to deliver our top-tier long-term outlook.
Industry Context
AbbVie's results reflect the ongoing shift in the pharmaceutical industry as companies adapt to patent expirations and develop new growth drivers. The strong performance of Skyrizi and Rinvoq highlights the importance of innovative therapies in the immunology space, while the growth in the neuroscience portfolio indicates a focus on expanding into new therapeutic areas. The acquisitions of Landos Biopharma and Celsius Therapeutics demonstrate a strategic move to bolster the pipeline with novel assets.
Comparison to Industry Standards
- AbbVie's performance in the immunology space, particularly with Skyrizi and Rinvoq, is comparable to other major pharmaceutical companies that have successfully launched new biologics to offset declines in older products. For example, companies like Johnson & Johnson with Stelara and Tremfya have shown similar growth trajectories in the immunology market.
- The decline in Humira sales is consistent with industry expectations as biosimilars enter the market, similar to what has been observed with other blockbuster drugs facing generic competition.
- AbbVie's growth in the neuroscience portfolio is in line with the broader trend of increased investment in neurological and psychiatric treatments, as seen with companies like Biogen and Eli Lilly.
- The aesthetics portfolio's performance is mixed, with Botox Cosmetic showing growth while Juvederm is declining, which is similar to trends seen in the broader aesthetics market where some products gain popularity while others lose market share.
Stakeholder Impact
- Shareholders will likely react positively to the raised EPS guidance and strong performance in key growth areas.
- Employees may experience changes due to the recent acquisitions and management transition.
- Customers will benefit from the approval of new therapies and the expansion of AbbVie's product portfolio.
- Suppliers and creditors will be impacted by the company's financial performance and strategic decisions.
Next Steps
- AbbVie will continue to work with the FDA to bring ABBV-951 to patients in the U.S. as quickly as possible.
- The company will present full data from the PICCOLO study at a future medical meeting.
- AbbVie will continue to advance its pipeline and seek regulatory approvals for new indications.
Key Dates
- July 1, 2024: Robert A. Michael assumed the role of chief executive officer (CEO) and joined AbbVie's Board of Directors.
- July 25, 2024: AbbVie announced financial results for the second quarter ended June 30, 2024.
Keywords
AbbVie, Financial Results, Second Quarter, EPS, Revenue, Humira, Skyrizi, Rinvoq, Immunology, Oncology, Neuroscience, Aesthetics, Acquisition, FDA Approval, 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.
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.
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.
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.
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
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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