Le Lézard
Classified in: Health, Science and technology, Business, Covid-19 virus
Subjects: ERN, ERP

AbbVie Reports Second-Quarter 2022 Financial Results


NORTH CHICAGO, Ill., July 29, 2022 /PRNewswire/ -- AbbVie (NYSE:ABBV) announced financial results for the second quarter ended June 30, 2022.

"We delivered another strong quarter with substantial progress for our new products and indications. Importantly, Skyrizi and Rinvoq continued their impressive ramps and are on pace to deliver approximately $7.5 billion in combined annual sales, underscoring their significant potential," said Richard A. Gonzalez, chairman and chief executive officer, AbbVie. "The momentum of our business, combined with advances across our pipeline continue to support AbbVie's promising long-term outlook."

Note: "Operational" comparisons are presented at constant currency rates that reflect comparative local currency net revenues at the prior year's foreign exchange rates.


1 Beginning in the first quarter 2022, AbbVie includes the impact of upfront and milestone payments related to collaborations, licensing agreements and other asset acquisitions in its reported non-GAAP financial measures.

Second-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

Full-Year 2022 Outlook

AbbVie is confirming its adjusted diluted EPS guidance range for the full-year 2022 of $13.78 - $13.98 which includes an unfavorable impact of $0.23 per share related to acquired IPR&D and milestones expense incurred year-to-date through the second quarter 2022. The company's 2022 adjusted diluted EPS guidance excludes any impact from acquired IPR&D and milestones that may be incurred beyond the second quarter of 2022, 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 second-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 2022 and 2021 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. Beginning in the first quarter of 2022, the company includes the impact of upfront and milestone payments related to collaborations, licensing agreements, and other asset acquisitions in its reported non-GAAP financial measures. Prior periods have been revised to conform to the current period presentation. 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, among others, 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 indicated in the forward-looking statements. Such risks and uncertainties include, but are not limited to, the failure to realize the expected benefits of AbbVie's acquisition of Allergan or to promptly and effectively integrate Allergan's business, 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 2021 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 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 June 30, 2022

(Unaudited) 








% Change vs. 2Q21


Net Revenues (in millions)


Reported


Operationala


U.S.


Int'l.


Total


U.S.


Int'l.


Total


Int'l.


Total

NET REVENUES

$11,410


$3,173


$14,583


5.6 %


0.6 %


4.5 %


7.6 %


6.1 %

















Immunology

6,155


1,052


7,207


20.3


4.9


17.8


13.4


19.2

Humira

4,664


699


5,363


9.6


(13.8)


5.8


(7.3)


6.8

Skyrizi

1,079


173


1,252


91.1


59.1


85.9


73.9


88.3

Rinvoq

412


180


592


39.4


>100.0


56.3


>100.0


60.7

















Hematologic Oncology

1,115


535


1,650


(15.7)


8.5


(9.1)


12.9


(7.9)

Imbruvicab

862


283


1,145


(21.6)


0.5


(17.1)


0.5


(17.1)

Venclexta

253


252


505


13.4


19.1


16.2


29.3


21.2

















Aesthetics

883


488


1,371


(4.5)


(4.2)


(4.4)


2.1


(2.1)

Botox Cosmetic

449


246


695


22.4


12.9


18.9


19.2


21.2

Juvederm Collection

147


197


344


(24.9)


(15.0)


(19.5)


(8.1)


(15.7)

Other Aesthetics

287


45


332


(20.9)


(24.4)


(21.4)


(20.2)


(20.8)

















Neuroscience

1,438


220


1,658


16.2


(0.3)


13.7


9.4


15.2

Botox Therapeutic

557


121


678


14.2


5.6


12.6


15.6


14.5

Vraylar

492


?


492


13.9


n/a


13.9


n/a


13.9

Duodopa

26


94


120


3.2


(7.4)


(5.4)


2.2


2.3

Ubrelvy

185


?


185


47.6


n/a


47.6


n/a


47.6

Qulipta

33


?


33


n/m


n/a


n/m


n/a


n/m

Other Neuroscience

145


5


150


(13.6)


9.6


(12.9)


12.9


(12.8)

















Eye Care

407


310


717


(34.1)


2.5


(22.0)


10.8


(19.3)

Lumigan/Ganfort

60


70


130


(17.4)


(8.1)


(12.5)


(0.9)


(8.7)

Alphagan/Combigan

54


38


92


(48.5)


(2.3)


(35.6)


6.6


(33.1)

Restasis

151


17


168


(51.5)


14.9


(48.4)


24.2


(48.0)

Other Eye Care

142


185


327


9.7


7.4


8.4


16.0


13.2

















Other Key Products

768


203


971


3.7


(17.8)


(1.6)


(9.7)


0.4

Mavyret

203


195


398


0.2


(18.0)


(9.7)


(9.8)


(5.3)

Creon

318


?


318


13.6


n/a


13.6


n/a


13.6

Linzess/Constella

247


8


255


(4.2)


(12.5)


(4.5)


(7.8)


(4.4)

a   "Operational" comparisons are presented at constant currency rates that reflect comparative local currency net revenues at the prior year's foreign exchange rates.

b   Reflects profit sharing for Imbruvica international revenues.

n/a = not applicable

n/m = not meaningful

 

AbbVie Inc.

Key Product Revenues

Six Months Ended June 30, 2022

(Unaudited)









% Change vs. 6M21


Net Revenues (in millions)


Reported


Operationala


U.S.


Int'l.


Total


U.S.


Int'l.


Total


Int'l.


Total

NET REVENUES

$21,758


$6,363


$28,121


5.9 %


(0.8) %


4.3 %


5.3 %


5.7 %

















Immunology

11,240


2,108


13,348


15.3


(0.2)


12.5


7.0


13.8

Humira

8,657


1,442


10,099


6.0


(18.6)


1.7


(13.1)


2.7

Skyrizi

1,860


332


2,192


77.8


64.7


75.7


78.1


77.9

Rinvoq

723


334


1,057


33.7


>100.0


55.1


>100.0


59.2

















Hematologic Oncology

2,217


1,079


3,296


(12.9)


14.4


(5.5)


18.5


(4.4)

Imbruvicab

1,736


582


2,318


(17.2)


5.6


(12.5)


5.6


(12.5)

Venclexta

481


497


978


7.5


26.8


16.5


36.7


21.1

















Aesthetics

1,729


1,016


2,745


4.6


10.2


6.6


16.2


8.7

Botox Cosmetic

862


474


1,336


28.3


21.5


25.8


27.7


28.1

Juvederm Collection

295


459


754


(7.5)


6.7


0.7


13.0


4.3

Other Aesthetics

572


83


655


(13.6)


(18.3)


(14.2)


(14.3)


(13.7)

















Neuroscience

2,711


435


3,146


19.2


0.8


16.2


9.1


17.5

Botox Therapeutic

1,057


235


1,292


15.3


8.0


13.9


16.3


15.5

Vraylar

919


?


919


18.1


n/a


18.1


n/a


18.1

Duodopa

50


191


241


(1.2)


(7.2)


(6.0)


1.3


0.8

Ubrelvy

323


?


323


56.4


n/a


56.4


n/a


56.4

Qulipta

44


?


44


n/m


n/a


n/m


n/a


n/m

Other Neuroscience

318


9


327


(1.7)


10.4


(1.4)


12.6


(1.3)

















Eye Care

903


585


1,488


(21.2)


(0.7)


(14.3)


7.4


(11.6)

Lumigan/Ganfort

127


143


270


(8.3)


(6.9)


(7.5)


(0.1)


(3.9)

Alphagan/Combigan

124


75


199


(32.3)


(3.1)


(23.6)


6.0


(20.9)

Restasis

386


28


414


(33.2)


(0.2)


(31.7)


14.0


(31.0)

Other Eye Care

266


339


605


7.7


2.6


4.8


10.5


9.3

















Other Key Products

1,457


421


1,878


4.0


(15.6)


(1.1)


(8.2)


0.8

Mavyret

372


406


778


(0.4)


(15.9)


(9.1)


(8.4)


(4.9)

Creon

605


?


605


9.2


n/a


9.2


n/a


9.2

Linzess/Constella

480


15


495


1.3


(3.8)


1.1


0.7


1.2

a   "Operational" comparisons are presented at constant currency rates that reflect comparative local currency net revenues at the prior year's foreign exchange rates.

b   Reflects profit sharing for Imbruvica international revenues.

n/a = not applicable

n/m = not meaningful

 

AbbVie Inc.

Consolidated Statements of Earnings

Quarter and Six Months Ended June 30, 2022 and 2021

(Unaudited) (In millions, except per share data)



Second Quarter

Ended June 30


Six Months

Ended June 30


2022


2021


2022


2021

Net revenues

$       14,583


$       13,959


$       28,121


$        26,969

Cost of products sold

4,170


4,523


8,222


8,736

Selling, general and administrative

5,412


3,164


8,539


6,006

Research and developmenta

1,609


1,767


3,106


3,434

Acquired IPR&D and milestonesa

269


132


414


317

Other operating income

(172)


(68)


(172)


(68)

Total operating costs and expenses

11,288


9,518


20,109


18,425









Operating earnings

3,295


4,441


8,012


8,544









Interest expense, net

532


606


1,071


1,228

Net foreign exchange loss

47


14


72


23

Other expense, net

1,533


2,658


757


2,263

Earnings before income tax expense

1,183


1,163


6,112


5,030

Income tax expense

255


394


691


706

Net earnings

928


769


5,421


4,324

Net earnings attributable to noncontrolling interest

4


3


7


5

Net earnings attributable to AbbVie Inc.

$             924


$             766


$          5,414


$          4,319









Diluted earnings per share attributable to AbbVie Inc.

$            0.51


$            0.42


$            3.03


$            2.41









Adjusted diluted earnings per shareb

$            3.37


$            3.03


$            6.52


$            5.92









Weighted-average diluted shares outstanding

1,776


1,776


1,777


1,776

 

a

During the three months ended March 31, 2022, AbbVie changed its classification of development milestone expense associated with licensing and collaboration arrangements in the consolidated statement of earnings. Milestone payments incurred prior to regulatory approval, which were previously included in research and development expense, are now presented as acquired IPR&D and milestones expense. The reclassification decreased research and development expense and increased acquired IPR&D and milestones expense by $35 million for the three months and $150 million for the six months ended June 30, 2021. The company believes this presentation assists users of the financial statements to better understand the total upfront and subsequent development milestone payments incurred to acquire in-process research and development projects. Prior periods have been revised to conform to the current period presentation. The reclassification had no impact on total operating costs and expenses, operating earnings, net earnings, net earnings attributable to AbbVie, Inc., earnings per share, or total equity.



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

Quarter Ended June 30, 2022

(Unaudited) (In millions, except per share data)


1.     Specified items impacted results as follows:





2Q22


Earnings


Diluted


Pre-tax


After-taxa


EPS

As reported (GAAP)

$              1,183


$                 924


$                0.51

Adjusted for specified items:






Intangible asset amortization

1,849


1,556


0.88

Acquisition and integration costs

109


98


0.05

Change in fair value of contingent consideration                                   

1,609


1,621


0.91

Pylera divestiture

(172)


(126)


(0.07)

Litigation matters

2,203


1,779


1.00

Other

159


154


0.09

As adjusted (non-GAAP)

$              6,940


$              6,006


$                3.37

a     Represents net earnings attributable to AbbVie Inc.


Acquisition and integration costs reflect integration costs related to the Allergan acquisition. Litigation matters primarily includes a charge related to a potential settlement of litigation involving Allergan's past sales of opioid products. Other primarily includes restructuring charges associated with streamlining global operations and COVID-19 related expenses.


Beginning in the first quarter of 2022, the company includes acquired IPR&D and milestones expense in its reported non-GAAP financial measures. Reported GAAP earnings and adjusted non-GAAP earnings for the three months ended June 30, 2022 included acquired IPR&D and milestones expense of $269 million on a pre-tax and $254 million on an after-tax basis, representing an unfavorable impact of $0.14 to both diluted EPS and adjusted diluted EPS.


2.     The impact of the specified items by line item was as follows:

 


2Q22


Cost of
products
sold


SG&A


R&D


Other
operating
income


Other
expense,
net

As reported (GAAP)

$      4,170


$      5,412


$      1,609


$        (172)


$      1,533

Adjusted for specified items:










Intangible asset amortization

(1,849)


?


?


?


?

Acquisition and integration costs

(28)


(79)


(2)


?


?

Change in fair value of contingent consideration             

?


?


?


?


(1,609)

Pylera divestiture

?


?


?


172


?

Litigation matters

?


(2,203)


?


?


?

Other

(61)


(95)


?


?


(3)

As adjusted (non-GAAP)

$      2,232


$      3,035


$      1,607


$            ?


$          (79)


3.     The adjusted tax rate for the second quarter of 2022 was 13.4 percent, as detailed below:



2Q22


Pre-tax
earnings


Income taxes


Tax rate

As reported (GAAP)

$              1,183


$                 255


21.6 %

Specified items

5,757


675


11.7 %

As adjusted (non-GAAP)                                                                              

$              6,940


$                 930


13.4 %

 

AbbVie Inc.

Reconciliation of GAAP Reported to Non-GAAP Adjusted Information

Quarter Ended June 30, 2021

(Unaudited) (In millions, except per share data)


1.     Specified items impacted results as follows:




2Q21


Earnings


Diluted


Pre-tax


After-taxa


EPS

As reported (GAAP)

$              1,163


$                 766


$                0.42

Adjusted for specified items:






Intangible asset amortization

1,999


1,662


0.95

Acquisition and integration costs

135


106


0.05

Change in fair value of contingent consideration                                           

2,692


2,690


1.51

Litigation matters

107


93


0.05

Other

130


107


0.05

As adjusted (non-GAAP)

$              6,226


$              5,424


$                3.03

a     Represents net earnings attributable to AbbVie Inc.


Acquisition and integration costs reflect integration costs related to the Allergan acquisition. Other primarily includes the purchase of an FDA priority review voucher from a third party, restructuring charges associated with streamlining global operations and COVID-19 related expenses.


Beginning in the first quarter of 2022, the company includes acquired IPR&D and milestones expense in its reported non-GAAP financial measures. Reported GAAP earnings and adjusted non-GAAP earnings for the three months ended June 30, 2021 included acquired IPR&D and milestones expense of $132 million on a pre-tax and after-tax basis, representing an unfavorable impact of $0.08 to both diluted EPS and adjusted diluted EPS.


2.     The impact of the specified items by line item was as follows: 

 


2Q21


Cost of
products
sold


SG&A


R&D


Other
operating
income


Other
expense,
net

As reported (GAAP)

$     4,523


$     3,164


$     1,767


$            (68)


$     2,658

Adjusted for specified items:










Intangible asset amortization

(1,999)


?


?


?


?

Acquisition and integration costs

(24)


(94)


(17)


?


?

Change in fair value of contingent consideration                 

?


?


?


?


(2,692)

Litigation matters

?


(107)


?


?


?

Other

(21)


(10)


(167)


68


?

As adjusted (non-GAAP)

$     2,479


$     2,953


$     1,583


$             ?


$         (34)


 3.     The adjusted tax rate for the second quarter of 2021 was 12.8 percent, as detailed below:



2Q21


Pre-tax
earnings


Income taxes


Tax rate

As reported (GAAP)

$              1,163


$                 394


33.8 %

Specified items

5,063


405


8.0 %

As adjusted (non-GAAP)                                                                              

$              6,226


$                 799


12.8 %

 

AbbVie Inc.

Reconciliation of GAAP Reported to Non-GAAP Adjusted Information

Six Months Ended June 30, 2022

(Unaudited) (In millions, except per share data)



1.     Specified items impacted results as follows:





6M22


Earnings


Diluted


Pre-tax


After-taxa


EPS

As reported (GAAP)

$              6,112


$              5,414


$                3.03

Adjusted for specified items:






Intangible asset amortization

3,704


3,121


1.75

Acquisition and integration costs

247


219


0.12

Change in fair value of contingent consideration                                      

861


875


0.49

Pylera divestiture

(172)


(126)


(0.07)

Litigation matters

2,387


1,927


1.08

Other

223


217


0.12

As adjusted (non-GAAP)

$           13,362


$           11,647


$                6.52

a     Represents net earnings attributable to AbbVie Inc.


Acquisition and integration costs reflect integration costs related to the Allergan acquisition. Litigation matters primarily includes a charge related to a potential settlement of litigation involving Allergan's past sales of opioid products. Other primarily includes restructuring charges associated with streamlining global operations.


Beginning in the first quarter of 2022, the company includes acquired IPR&D and milestones expense in its reported non-GAAP financial measures. Reported GAAP earnings and adjusted non-GAAP earnings for the six months ended June 30, 2022 included acquired IPR&D and milestones expense of $414 million on a pre-tax and $399 million on an after-tax basis, representing an unfavorable impact of $0.23 to both diluted EPS and adjusted diluted EPS.


2.     The impact of the specified items by line item was as follows: 

 


6M22


Cost of
products
sold


SG&A


R&D


Other
operating
income


Other
expense,
net

As reported (GAAP)

$     8,222


$     8,539


$     3,106


$       (172)


$        757

Adjusted for specified items:










Intangible asset amortization

(3,704)


?


?


?


?

Acquisition and integration costs

(62)


(172)


(13)


?


?

Change in fair value of contingent consideration                  

?


?


?


?


(861)

Pylera divestiture

?


?


?


172


?

Litigation matters

?


(2,387)


?


?


?

Other

(121)


(93)


(6)


?


(3)

As adjusted (non-GAAP)

$     4,335


$     5,887


$     3,087


$           ?


$       (107)


3.     The adjusted tax rate for the first six months of 2022 was 12.8 percent, as detailed below:



6M22


Pre-tax
earnings


Income taxes


Tax rate

As reported (GAAP)

$              6,112


$                 691


11.3 %

Specified items

7,250


1,017


14.0 %

As adjusted (non-GAAP)                                                                               

$           13,362


$              1,708


12.8 %

 

 

AbbVie Inc.

Reconciliation of GAAP Reported to Non-GAAP Adjusted Information

Six Months Ended June 30, 2021

(Unaudited) (In millions, except per share data)


1.     Specified items impacted results as follows:



6M21


Earnings


Diluted


Pre-tax


After-taxa


EPS

As reported (GAAP)

$              5,030


$              4,319


$                2.41

Adjusted for specified items:






Intangible asset amortization

4,008


3,344


1.88

Acquisition and integration costs

359


261


0.15

Change in fair value of contingent consideration                                      

2,349


2,347


1.32

Litigation matters

107


93


0.05

Other

271


219


0.11

As adjusted (non-GAAP)

$           12,124


$           10,583


$                5.92

 a    Represents net earnings attributable to AbbVie Inc.


Acquisition and integration costs reflect integration costs as well as amortization of the acquisition date fair value step-up for inventory related to the Allergan acquisition. Other primarily includes the purchase of FDA priority review vouchers from third parties, restructuring charges associated with streamlining global operations and COVID-19 related expenses.


Beginning in the first quarter of 2022, the company includes acquired IPR&D and milestones expense in its reported non-GAAP financial measures. Reported GAAP earnings and adjusted non-GAAP earnings for the six months ended June 30, 2021 included acquired IPR&D and milestones expense of $317 million on a pre-tax and $300 million on an after-tax basis, representing an unfavorable impact of $0.17 to both diluted EPS and adjusted diluted EPS.


2.     The impact of the specified items by line item was as follows: 


    6M21


Cost of
products sold


SG&A


R&D


Other
operating
income


Other
expense, net

As reported (GAAP)

$            8,736


$            6,006


$            3,434


$                 (68)


$            2,263

Adjusted for specified items:










Intangible asset amortization

(4,008)


?


?


?


?

Acquisition and integration costs       

(123)


(170)


(66)


?


?

Change in fair value of contingent
consideration

?


?


?


?


(2,349)

Litigation matters

?


(107)


?


?


?

Other

(41)


(33)


(280)


68


15

As adjusted (non-GAAP)

$            4,564


$            5,696


$            3,088


$                   ?


$                 (71)


3.     The adjusted tax rate for the first six months of 2021 was 12.7 percent, as detailed below:



6M21


Pre-tax
earnings


Income taxes


Tax rate

As reported (GAAP)

$              5,030


$                 706


14.0 %

Specified items

7,094


830


11.7 %

As adjusted (non-GAAP)                                                                              

$           12,124


$              1,536


12.7 %

 

SOURCE AbbVie


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