ABBV
$107.33
Abbvie
($1.36)
(1.25%)
Earnings Details
4th Quarter December 2020
Wednesday, February 03, 2021 7:38:00 AM
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Summary

Abbvie Misses

Abbvie (ABBV) reported 4th Quarter December 2020 earnings of $2.92 per share on revenue of $13.9 billion. The consensus earnings estimate was $2.85 per share on revenue of $13.7 billion. The Earnings Whisper number was $3.03 per share. Revenue grew 59.2% on a year-over-year basis.

The company said it expects 2021 earnings of $12.32 to $12.52 per share. The current consensus earnings estimate is $12.17 per share for the year ending December 31, 2021.

AbbVie Inc is a research-based biopharmaceutical company. Its products are used to treat diseases including rheumatoid arthritis, psoriasis, Crohn' disease, HIV, cystic fibrosis complications.

Results
Reported Earnings
$2.92
Earnings Whisper
$3.03
Consensus Estimate
$2.85
Reported Revenue
$13.86 Bil
Revenue Estimate
$13.74 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

AbbVie Reports Full-Year and Fourth-Quarter 2020 Financial Results

NORTH CHICAGO, Ill., Feb. 3, 2021 /PRNewswire/ -- AbbVie (NYSE: ABBV) announced financial results for the fourth quarter and full year ended December 31, 2020.

"We successfully completed the transformative Allergan acquisition and delivered another year of strong results in 2020, despite the challenges presented by the global pandemic," said Richard A. Gonzalez, chairman and chief executive officer, AbbVie. "Based on our broad portfolio of diversified growth assets and the robust momentum of our business, we expect impressive growth again in 2021."

Fourth-Quarter Results

  • Worldwide net revenues were $13.858 billion, an increase of 59.2 percent on a reported basis, or an increase of 6.8 percent on a comparable operational basis.
  • Global net revenues from the immunology portfolio were $5.958 billion, an increase of 15.3 percent on a reported basis, or 14.8 percent on an operational basis.
    • Global Humira net revenues of $5.152 billion increased 4.8 percent on a reported basis, or 4.4 percent on an operational basis. U.S. Humira net revenues were $4.293 billion, an increase of 8.2 percent. Internationally, Humira net revenues were $859 million, a decrease of 9.4 percent on a reported basis, or 11.4 percent on an operational basis, due to biosimilar competition.
    • Global Skyrizi net revenues were $525 million.
    • Global Rinvoq net revenues were $281 million.
  • Global net revenues from the hematologic oncology portfolio were $1.789 billion, an increase of 15.7 percent on a reported basis, or 15.5 percent on an operational basis.
    • Global Imbruvica net revenues were $1.424 billion, an increase of 9.8 percent, with U.S. net revenues of $1.165 billion and international profit sharing of $259 million.
    • Global Venclexta net revenues were $365 million, an increase of 46.2 percent on a reported basis, or 45.0 percent on an operational basis.
  • Global net revenues from the aesthetics portfolio were $1.142 billion, a decrease of 0.7 percent on a comparable operational basis.
    • Global Botox Cosmetic net revenues were $493 million, an increase of 9.1 percent on a comparable operational basis.
  • Global net revenues from the neuroscience portfolio were $1.389 billion, an increase of over 100.0 percent on a reported basis, or 14.9 percent on a comparable operational basis.
    • Global Botox Therapeutic net revenues were $567 million, a decrease of 1.0 percent on a comparable operational basis.
    • Global Vraylar net revenues were $401 million, an increase of 38.0 percent on a comparable operational basis.
    • Global Ubrelvy net revenues were $65 million.
  • On a GAAP basis, the gross margin ratio in the fourth quarter was 66.2 percent. The adjusted gross margin ratio was 81.8 percent.
  • On a GAAP basis, selling, general and administrative expense was 23.3 percent of net revenues. The adjusted SG&A expense was 22.3 percent of net revenues.
  • On a GAAP basis, research and development expense was 13.6 percent of net revenues. The adjusted R&D expense was 12.6 percent of net revenues, reflecting funding actions supporting all stages of our pipeline.
  • On a GAAP basis, the operating margin in the fourth quarter was 27.1 percent. The adjusted operating margin was 46.9 percent.
  • On a GAAP basis, net interest expense was $618 million.
  • On a GAAP basis, the tax rate in the quarter was 102.5 percent. The adjusted tax rate was 11.6 percent.
  • Diluted EPS in the fourth quarter was $0.01 on a GAAP basis. Adjusted diluted EPS, excluding specified items, was $2.92.
  • Recorded a $4.7 billion increase in the Skyrizi contingent consideration liability due to higher estimated future sales driven by stronger market share uptake and favorable clinical trial results as well as lower interest rates.

Note: "Comparable Operational" comparisons include full-quarter current year and prior year results for Allergan, which was acquired on May 8, 2020, as if the acquisition closed on January 1, 2019, and are presented at constant currency rates and reflect comparative local currency net revenues at the prior year's foreign exchange rates. Refer to the Key Product Revenues schedules for further details. "Operational" comparisons are presented at constant currency rates and reflect comparative local currency net revenues at the prior year's foreign exchange rates.

Recent Events

  • AbbVie announced that the European Commission (EC) has approved Rinvoq (upadacitinib, 15 mg, once daily) for the treatment of adults with active psoriatic arthritis (PsA) and active ankylosing spondylitis (AS). Rinvoq is the first oral, once-daily, selective and reversible JAK inhibitor approved for three adult rheumatic indications in the European Union: rheumatoid arthritis (RA), PsA and AS. The EC approval is supported by data from three pivotal clinical studies in PsA and AS where Rinvoq met all primary and key secondary endpoints with a safety profile consistent with that seen in RA.
  • AbbVie announced top-line results from the Phase 3b Heads Up study showing that Rinvoq (30 mg, once daily) achieved superiority to Dupixent (dupilumab, 300 mg, every other week) for the primary endpoint, the proportion of patients with at least a 75 percent improvement in the Eczema Area Severity Index (EASI 75) at week 16, in adults with moderate to severe atopic dermatitis (AD). Rinvoq also showed superiority versus Dupixent for all ranked secondary endpoints, including early improvements in itch and skin clearance. The safety profile of Rinvoq was consistent with previous AD studies, with no new safety risks observed. Full results from the Heads Up study will be submitted for publication in a peer-reviewed journal.
  • AbbVie announced positive results from the Phase 3 induction study, U-ACHIEVE, which showed Rinvoq (45 mg, once daily) met the primary endpoint of clinical remission (per Adapted Mayo Score) at week 8 in adult patients with moderate to severe ulcerative colitis (UC). Additionally, all ranked secondary endpoints, including clinical, endoscopic and histologic outcomes, were met. The safety results in this study were consistent with the known profile of Rinvoq, with no new safety risks observed. U-ACHIEVE is the first of two Phase 3 induction studies to evaluate the safety and efficacy of Rinvoq in adults with moderate to severe UC and full results from the study will be presented at a future medical meeting and submitted for publication in a peer-reviewed journal.
  • AbbVie announced positive top-line results from the Phase 3 ADVANCE and MOTIVATE studies, which evaluated the efficacy and safety of Skyrizi (risankizumab) for induction therapy in adult patients with moderate to severe Crohn's disease (CD). In ADVANCE and MOTIVATE, both doses of Skyrizi (600mg and 1200mg) met the co-primary endpoints of clinical remission and endoscopic response at week 12, demonstrating superiority versus placebo. Additionally, key secondary endpoints showed significant clinical and endoscopic outcomes, with symptom improvement observed as early as week 4. The overall safety results in these studies were generally consistent with the known safety profile of Skyrizi, with no new safety risks observed. Skyrizi is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally.
  • AbbVie announced positive top-line results from the Phase 3 KEEPsAKE-1 and KEEPsAKE-2 studies evaluating Skyrizi (150 mg) in adults with active PsA, with Skyrizi demonstrating strong levels of response on both joint and skin endpoints. In both Phase 3 trials, significantly more patients treated with Skyrizi achieved the primary endpoint of ACR20 response at week 24 versus placebo. Results of ranked secondary endpoints showed significant improvements in skin clearance (as measured by at least a 90 percent improvement in Psoriasis Area Severity Index (PASI 90)), physical function (as measured by the Health Assessment Questionnaire Disability Index (HAQ-DI)) and minimal disease activity (MDA) at week 24. The safety results in these studies to-date were generally consistent with the known profile of Skyrizi in psoriasis (PsO) patients. Detailed data from both pivotal studies will be presented at an upcoming medical meeting and we expect to submit our regulatory applications for Skyrizi in PsA in the first half of this year.
  • AbbVie hosted an Immunology Strategic Update event on December 14, 2020 for members of the investment community. The event highlighted AbbVie's immunology leadership, market expectations, strong and growing body of clinical data, innovative pipeline, and strategy to capitalize on a best-in-class immunology portfolio over the long term. As part of the event, AbbVie raised its 2025 risk-adjusted combined sales guidance for Skyrizi and Rinvoq to greater than $15 billion, above previous guidance of greater than $10 billion. Supporting materials from the Immunology Strategic Update, including the event presentation and an archived webcast, can be found on AbbVie's Investor Relations website at investors.abbvie.com.
  • At the virtual American Society of Hematology Annual Meeting and Exposition (ASH), AbbVie presented data from nearly 40 abstracts on 8 investigational and approved products across 11 cancer types, including 10 oral presentations. Key data presentations included new disease-free survival data from the Phase 2 CAPTIVATE study evaluating Imbruvica (ibrutinib) plus Venclexta (venetoclax) in previously untreated patients with chronic lymphocytic leukemia (CLL) or small lymphocytic lymphoma (SLL); new extended follow-up data for fixed duration treatment Venclexta in CLL from the Phase 3 Murano and Phase 3 CLL14 studies; results from several long-term follow-up studies evaluating Imbruvica in multiple types of blood cancers; and data from collaborations on pipeline candidates in partnership with Genmab and I-Mab. Venetoclax is being developed by AbbVie and Roche and is jointly commercialized by AbbVie and Genentech, a member of the Roche Group, in the U.S. and by AbbVie outside of the U.S. Imbruvica is jointly developed and commercialized with Janssen Biotech, Inc.
  • AbbVie announced that the U.S. Food and Drug Administration (FDA) approved the update of the Imbruvica Prescribing Information to include efficacy and safety data for the combination of Imbruvica with rituximab for the treatment of Waldenström's macroglobulinemia (WM). The update is based on more than 5 years of Phase 3 iNNOVATE final analysis data, which demonstrated Imbruvica plus rituximab significantly prolonged progression-free survival (PFS) versus rituximab alone in adults with WM. Imbruvica was approved as a monotherapy for WM in 2015 and as a combination therapy with rituximab in 2018 based on the iNNOVATE primary analysis.
  • Allergan Aesthetics announced the launch of CoolSculpting Elite, its next generation fat reduction system with new technology that allows for the treatment of two areas of fat at once and new elite applicators designed for improved fit and comfort. CoolSculpting Elite harnesses proven CoolSculpting technology to target, freeze, and eliminate treated fat cells. CoolSculpting Elite is FDA cleared to treat visible fat bulges in nine areas of the body including the thigh, abdomen, and flank, along with bra fat, back fat, underneath the buttocks (also known as banana roll), upper arm, and the submental and submandibular areas.
  • Allergan Aesthetics entered into a warrant agreement with Cypris Medical, a privately held medical device company, that provides Allergan Aesthetics the right to acquire Cypris Medical, including the company's Xact device, following the completion of a clinical trial to be initiated in 2021. The Xact device is a minimally-invasive alternative option for performing face and neck lifts and the planned clinical trial will evaluate the safety and effectiveness of Xact in treating midface descent as well as for neck lifts.
  • AbbVie presented results from 16 neurotoxin research abstracts across multiple therapeutic and cosmetic indications at the TOXINS 2021 Virtual Conference. The presentations included new analyses from the CD-PROBE study evaluating sustained efficacy and tolerability of Botox (onabotulinumtoxinA) in patients with cervical dystonia, new analyses from the ASPIRE study on patient adherence to Botox for management of spasticity, data on Botox treatment in adult patients with overactive bladder and in pediatric patients with neurogenic detrusor overactivity, a meta-analysis of immunogenicity rates across 10 therapeutic and aesthetic indications and results from a clinical trial evaluating the safety and pharmacodynamic response with higher doses of Botox on clinician and patient reported outcomes in patients with moderate to severe glabellar lines.
  • At the virtual American Academy of Ophthalmology (AAO) 2020, AbbVie presented new Phase 2 efficacy data for an investigational treatment of presbyopia, new data evaluating the effectiveness of Durysta (bimatoprost implant) and additional analysis of data from Phase 3 ARTEMIS studies that shed light on how glaucoma patients with different characteristics may respond to Durysta.
  • AbbVie recently provided new long-term sales guidance. The company expects continued strong total company sales growth leading up to the U.S. Humira (adalimumab) loss of exclusivity (LOE) in 2023. AbbVie expects total company sales to decline in 2023, following the LOE, with modest top-line growth expected in 2024. The company expects a rapid return to strong top-line growth in 2025, with a high-single digit compound annual growth rate (CAGR) through the remainder of the decade. AbbVie also outlined expectations for high-single digit annual growth for its aesthetics portfolio over the next decade, peak Vraylar (cariprazine) sales approaching $4 billion in current approved indications, peak Ubrelvy (ubrogepant) sales of greater than $1 billion and peak atogepant sales of greater than $1 billion. The company reiterated its expectation for greater than $15 billion of risk-adjusted combined Rinvoq and Skyrizi global sales in 2025.
  • AbbVie and Frontier Medicines, Corp., a precision medicine company drugging challenging protein targets to develop breakthrough medicines that change the course of human diseases, announced a global strategic collaboration to discover, develop and commercialize a pipeline of innovative small molecule therapeutics against high-interest, difficult-to-drug protein targets. Under the multi-year collaboration, AbbVie and Frontier will utilize Frontier's proprietary chemoproteomics platform to identify small molecules for programs directed to novel E3 ligases and certain oncology and immunology targets.
  • AbbVie announced that it will collaborate with 6 nonprofit partners as part of its $50 million investment to support health and education opportunity in underserved Black communities across the U.S. The partners include Direct Relief, University of Chicago Medicine's Urban Health Initiative, National Urban League, Year Up, United Negro College Fund (UNCF) and Providence St. Mel School. Additionally, as part of the announcement, AbbVie expanded its employee matching program to 3:1 for donations to civil rights nonprofits fostering racial equity.

Full-Year 2021 Outlook

AbbVie is issuing its GAAP diluted EPS guidance for the full-year 2021 of $6.69 to $6.89. AbbVie expects to deliver adjusted diluted EPS for the full-year 2021 of $12.32 to $12.52. The company's 2021 adjusted diluted EPS guidance excludes $5.63 per share of intangible asset amortization expense, non-cash charges for contingent consideration adjustments and other specified items.

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, women's health and gastroenterology, in addition to products and services across its 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 fourth-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 2020 and 2019 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. 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. The company's 2021 financial guidance is also being provided on both a reported and a non-GAAP basis.

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 2019 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 December 31, 2020

(Unaudited)









% Change vs. 4Q19


Net Revenues (in millions)


Reported


Comparable Operational a, b


U.S.


Int'l.


Total


U.S.


Int'l.


Total


U.S.


Int'l.


Total

NET REVENUES

$10,665


$3,193


$13,858


65.9%


40.4%


59.2%


9.4%


(1.2)%


6.8%

Immunology

4,988


970


5,958


18.9


(0.1)


15.3


18.9


(2.5)


14.8

Humira

4,293


859


5,152


8.2


(9.4)


4.8


8.2


(11.4)


4.4

Skyrizi

451


74


525


>100.0


>100.0


>100.0


>100.0


>100.0


>100.0

Rinvoq

244


37


281


>100.0


>100.0


>100.0


>100.0


>100.0


>100.0



















Hematologic Oncology

1,373


416


1,789


11.7


30.9


15.7


11.7


29.9


15.5

Imbruvicac

1,165


259


1,424


8.6


15.7


9.8


8.6


15.7


9.8

Venclexta

208


157


365


33.5


67.3


46.2


33.5


64.1


45.0



















Aesthetics

724


418


1,142


n/m


n/m


n/m


(2.5)


2.5


(0.7)

Botox Cosmetic*

303


190


493


n/m


n/m


n/m


11.1


6.0


9.1

Juvederm Collection*

147


184


331


n/m


n/m


n/m


(12.1)


3.4


(4.0)

Other Aesthetics*

274


44


318


n/m


n/m


n/m


(9.3)


(13.1)


(9.8)



















Neuroscience

1,188


201


1,389


>100.0


>100.0


>100.0


18.3


(2.0)


14.9

Botox Therapeutic*

472


95


567


n/m


n/m


n/m


0.3


(7.1)


(1.0)

Vraylar*

401



401


n/m


n/a


n/m


38.0


n/a


38.0

Duodopa

28


101


129


8.5


9.6


9.3


8.5


3.6


4.6

Ubrelvy*

65



65


n/m


n/a


n/m


n/m


n/a


n/m

Other Neuroscience*

222


5


227


n/m


n/m


n/m


1.7


(0.4)


1.7



















Eye Care

625


302


927


n/m


n/m


n/m


2.5


(4.5)


0.1

Lumigan/Ganfort*

68


85


153


n/m


n/m


n/m


(14.1)


(13.1)


(13.5)

Alphagan/Combigan*

92


42


134


n/m


n/m


n/m


(1.5)



(1.1)

Restasis*

333


11


344


n/m


n/m


n/m


0.7


(30.4)


(1.0)

Other Eye Care*

132


164


296


n/m


n/m


n/m


24.4


2.4


11.1



















Women's Health

249


7


256


>100.0


>100.0


>100.0


(12.5)


(48.1)


(14.1)

Lo Loestrin*

139


3


142


n/m


n/m


n/m


(13.6)


(31.7)


(14.1)

Orilissa/Oriahnn

37


1


38


10.0


41.0


10.7


10.0


41.5


10.7

Other Women's Health*

73


3


76


n/m


n/m


n/m


(18.7)


(65.0)


(22.6)



















Other Key Products

1,136


310


1,446


16.4


(15.7)


7.7


(6.5)


(19.5)


(9.6)

Mavyret

220


261


481


(27.8)


(19.0)


(23.3)


(27.8)


(22.1)


(24.9)

Creon

304



304


4.0


n/a


4.0


4.0


n/a


4.0

Lupron

139


42


181


(19.7)


(8.4)


(17.4)


(19.7)


(5.8)


(16.9)

Linzess/Constella*

279


7


286


n/m


n/m


n/m


16.1


6.3


15.9

Synthroid

194



194


(5.1)


n/a


(5.1)


(5.1)


n/a


(5.1)



a    

"Comparable Operational" comparisons include full-quarter current year and prior year results for Allergan products, as if the acquisition closed on January 1, 2019, and are presented at constant currency rates that reflect comparative local currency net revenues at the prior year's foreign exchange rates.

b   

All historically reported Allergan revenues have been recast to conform to AbbVie's revenue recognition accounting policies and reporting conventions for certain rebates and discounts. Historically reported Allergan revenues also exclude Zenpep and Viokace product revenues, which were both divested as part of the acquisition, as well as specified items.

c    

Reflects profit sharing for Imbruvica international revenues.

*

Represents product(s) acquired as part of the Allergan acquisition.

n/a = not applicable

n/m = not meaningful

 

AbbVie Inc.

Key Product Revenues

Twelve Months Ended December 31, 2020

(Unaudited)









% Change vs. 12M19


Net Revenues (in millions) a


Reported


Comparable Operational b, c


U.S.


Int'l.


Total


U.S.


Int'l.


Total


U.S.


Int'l.


Total

ADJUSTED NET REVENUES d

$34,859


$10,925


$45,784


45.8%


16.7%


37.6%


6.7%


(6.8)%


3.3%

Immunology

18,150


4,003


22,153


19.2


(7.9)


13.2


19.2


(6.9)


13.4

Humira

16,112


3,720


19,832


8.4


(13.6)


3.5


8.4


(12.5)


3.7

Skyrizi

1,385


205


1,590


>100.0


>100.0


>100.0


>100.0


>100.0


>100.0

Rinvoq

653


78


731


>100.0


>100.0


>100.0


>100.0


>100.0


>100.0



















Hematologic Oncology

5,109


1,542


6,651


17.4


38.3


21.7


17.4


38.5


21.7

Imbruvicae

4,305


1,009


5,314


12.4


19.5


13.7


12.4


19.5


13.7

Venclexta

804


533


1,337


54.4


97.0


69.0


54.4


97.8


69.3



















Aesthetics

1,671


919


2,590


n/m


n/m


n/m


(16.5)


(17.6)


(16.9)

Botox Cosmetic*

687


425


1,112


n/m


n/m


n/m


(8.8)


(16.7)


(12.0)

Juvederm Collection*

318


400


718


n/m


n/m


n/m


(27.1)


(18.2)


(22.4)

Other Aesthetics*

666


94


760


n/m


n/m


n/m


(17.7)


(19.4)


(17.9)



















Neuroscience

2,862


634


3,496


>100.0


74.0


>100.0


14.0


(2.7)


11.1

Botox Therapeutic*

1,155


232


1,387


n/m


n/m


n/m


(5.4)


(11.9)


(6.6)

Vraylar*

951



951


n/m


n/a


n/m


57.5


n/a


57.5

Duodopa

103


391


494


5.9


7.4


7.1


5.9


6.3


6.2

Ubrelvy*

125



125


n/m


n/a


n/m


n/m


n/a


n/m

Other Neuroscience*

528


11


539


n/m


n/m


n/m


(6.4)


28.1


(6.0)



















Eye Care

1,448


736


2,184


n/m


n/m


n/m


(0.5)


(8.8)


(3.4)

Lumigan/Ganfort*

165


213


378


n/m


n/m


n/m


(5.0)


(8.1)


(6.8)

Alphagan/Combigan*

223


103


326


n/m


n/m


n/m


(6.8)


(1.1)


(5.2)

Restasis*

755


32


787


n/m


n/m


n/m


(0.8)



(0.7)

Other Eye Care*

305


388


693


n/m


n/m


n/m


9.0


(11.6)


(3.6)



















Women's Health

648


25


673


>100.0


>100.0


>100.0


(13.1)


(17.9)


(13.3)

Lo Loestrin*

346


10


356


n/m


n/m


n/m


(14.5)


0.1


(14.3)

Orilissa/Oriahnn

121


4


125


33.3


96.1


34.6


33.3


97.7


34.6

Other Women's Health*

181


11


192


n/m


n/m


n/m


(22.4)


(35.2)


(23.3)



















Other Key Products

3,919


1,215


5,134


(2.5)


(23.4)


(8.4)


(13.6)


(24.0)


(16.2)

Mavyret

785


1,045


1,830


(46.7)


(26.4)


(36.7)


(46.7)


(26.8)


(36.9)

Creon

1,114



1,114


6.9


n/a


6.9


6.9


n/a


6.9

Lupron

600


152


752


(16.6)


(9.1)


(15.2)


(16.6)


(5.4)


(14.5)

Linzess/Constella*

649


18


667


n/m


n/m


n/m


10.2


16.7


10.4

Synthroid

771



771


(1.9)


n/a


(1.9)


(1.9)


n/a


(1.9)



a    

Net revenues include Allergan product revenues from the date of the acquisition, May 8, 2020, through December 31, 2020.

b   

"Comparable Operational" comparisons include full-period current year and prior year results for Allergan products, as if the acquisition closed on January 1, 2019, and are presented at constant currency rates that reflect comparative local currency net revenues at the prior year's foreign exchange rates.

c    

All historically reported Allergan revenues have been recast to conform to AbbVie's revenue recognition accounting policies and reporting conventions for certain rebates and discounts. Historically reported Allergan revenues also exclude Zenpep and Viokace product revenues, which were both divested as part of the acquisition, as well as specified items.

d   

Adjusted net revenues exclude specified items. Refer to the Reconciliation of GAAP Reported to Non-GAAP Adjusted Information for further details. Percentage change is calculated using adjusted net revenues.

e    

Reflects profit sharing for Imbruvica international revenues.

*

Represents product(s) acquired as part of the Allergan acquisition.

n/a = not applicable

n/m = not meaningful

 

AbbVie Inc.

Consolidated Statements of Earnings

Quarter and Twelve Months Ended December 31, 2020 and 2019

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



Fourth Quarter

Ended December 31


Twelve Months

Ended December 31


2020


2019


2020


2019

Net revenues

$

13,858



$

8,704



$

45,804



$

33,266


Cost of products sold

4,684



2,006



15,387



7,439


Selling, general and administrative

3,231



1,951



11,299



6,942


Research and development

1,890



1,542



6,557



6,407


Acquired in-process research and development

300



139



1,198



385


Other operating income



(890)





(890)


Total operating costs and expenses

10,105



4,748



34,441



20,283










Operating earnings

3,753



3,956



11,363



12,983










Interest expense, net

618



455



2,280



1,509


Net foreign exchange loss

17



11



71



42


Other expense, net

4,625



416



5,614



3,006


Earnings (loss) before income tax expense

(1,507)



3,074



3,398



8,426


Income tax expense (benefit)

(1,545)



273



(1,224)



544


Net earnings

38



2,801



4,622



7,882


Net earnings attributable to noncontrolling interest

2





6




Net earnings attributable to AbbVie Inc.

$

36



$

2,801



$

4,616



$

7,882










Diluted earnings per share attributable to AbbVie Inc.

$

0.01



$

1.88



$

2.72



$

5.28










Adjusted diluted earnings per sharea

$

2.92



$

2.21



$

10.56



$

8.94










Weighted-average diluted shares outstanding

1,776



1,485



1,673



1,484




a  

Refer to the Reconciliation of GAAP Reported to Non-GAAP Adjusted Information for further details. Weighted-average diluted shares outstanding includes the effect of dilutive securities.

 

AbbVie Inc.

Reconciliation of GAAP Reported to Non-GAAP Adjusted Information

Quarter Ended December 31, 2020

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


1.     Specified items impacted results as follows:


4Q20


Earnings (Loss)


Diluted


Pre-tax


After-taxa


EPS

As reported (GAAP)

$

(1,507)



$

36



$

0.01


Adjusted for specified items:






Intangible asset amortization

1,838



1,444



0.81


Acquisition and integration costs

467



399



0.22


Milestones and other R&D expenses

48



39



0.02


Acquired IPR&D

300



296



0.16


Change in fair value of contingent consideration

4,675



4,671



2.63


Tax audit settlements



(140)



(0.08)


Impacts related to tax law changes



(1,492)



(0.84)


Other

92



(28)



(0.01)


As adjusted (non-GAAP)

$

5,913



$

5,225



$

2.92



 a Represents net earnings attributable to AbbVie Inc.


Acquisition and integration costs reflect integration costs and amortization of the acquisition date fair value step-up for inventory related to the Allergan acquisition. Milestones and other R&D expenses include milestone payments for previously announced collaborations. Acquired IPR&D primarily reflects upfront payments related to R&D collaborations and licensing arrangements with third parties. Other primarily includes tax related items and COVID-19 related expenses.


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


4Q20


Cost of

products
sold


SG&A


R&D


Acquired

 IPR&D


Other
expense,
net

As reported (GAAP)

$

4,684



$

3,231



$

1,890



$

300



$

4,625


Adjusted for specified items:










Intangible asset amortization

(1,838)










Acquisition and integration costs

(272)



(126)



(69)






Milestones and other R&D expenses





(48)






Acquired IPR&D







(300)




Change in fair value of contingent consideration









(4,675)


Other

(51)



(16)



(22)





(3)


As adjusted (non-GAAP)

$

2,523



$

3,089



$

1,751



$



$

(53)



3.     The adjusted tax rate for the fourth quarter of 2020 was 11.6 percent, as detailed below:


4Q20


Pre-tax earnings
(loss)


Income

taxes


Tax rate

As reported (GAAP)

$

(1,507)



$

(1,545)



102.5

%

Specified items

7,420



2,231



30.1

%

As adjusted (non-GAAP)

$

5,913



$

686



11.6

%

 

AbbVie Inc.

Reconciliation of GAAP Reported to Non-GAAP Adjusted Information

Quarter Ended December 31, 2019

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


1.     Specified items impacted results as follows:


4Q19


Earnings


Diluted


Pre-tax


After-taxa


EPS

As reported (GAAP)

$

3,074



$

2,801



$

1.88


Adjusted for specified items:






Intangible asset amortization

391



324



0.22


Acquisition related costs

226



183



0.12


Milestones and other R&D expenses

217



193



0.13


Acquired IPR&D

139



123



0.08


Reata divestiture

(330)



(297)



(0.20)


Litigation matters

(550)



(435)



(0.29)


Change in fair value of contingent consideration

438



438



0.29


Restructuring

19



15



0.01


Tax audit settlement



(133)



(0.09)


Other

(10)



82



0.06


As adjusted (non-GAAP)

$

3,614



$

3,294



$

2.21



 a Represents net earnings attributable to AbbVie Inc.


Acquisition related costs reflect transaction and financing costs related to the Allergan acquisition. Milestones and other R&D expenses include milestone payments for previously announced collaborations and the purchase of an FDA priority review voucher from a third party. Acquired IPR&D primarily reflects upfront payments related to R&D collaborations and licensing arrangements with third parties. Litigation matters includes the settlement of an intellectual property dispute with a third party. Restructuring is primarily associated with streamlining global operations. Other primarily includes the impacts of tax law changes and U.S. tax reform.


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


4Q19


Cost of

products
sold


SG&A


R&D


Acquired

 IPR&D


Other
operating
income


Interest
expense,
net


Other
expense,
net

As reported (GAAP)

$

2,006



$

1,951



$

1,542



$

139



$

(890)



$

455



$

416


Adjusted for specified items:














Intangible asset amortization

(391)














Acquisition related costs



(53)









(173)




Milestones and other R&D expenses





(217)










Acquired IPR&D







(139)








Reata divestiture









330






Litigation matters









550






Change in fair value of contingent consideration













(438)


Restructuring

(10)



(15)



6










Other









10






As adjusted (non-GAAP)

$

1,605



$

1,883



$

1,331



$



$



$

282



$

(22)



3.     The adjusted tax rate for the fourth quarter of 2019 was 8.8 percent, as detailed below:


4Q19


Pre-tax earnings


Income

taxes


Tax rate

As reported (GAAP)

$

3,074



$

273



8.9

%

Specified items

540



47



8.6

%

As adjusted (non-GAAP)

$

3,614



$

320



8.8

%

 

AbbVie Inc.

Reconciliation of GAAP Reported to Non-GAAP Adjusted Information

Twelve Months Ended December 31, 2020

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


1.     Specified items impacted results as follows:


12M20


Earnings


Diluted


Pre-tax


After-taxa


EPS

As reported (GAAP)

$

3,398



$

4,616



$

2.72


Adjusted for specified items:






Intangible asset amortization

5,805



4,805



2.87


Acquisition and integration costs

3,366



3,023



1.81


Milestones and other R&D expenses

273



241



0.14


Acquired IPR&D

1,198



1,194



0.71


Change in fair value of contingent consideration

5,753



5,749



3.43


Tax audit settlements



(200)



(0.12)


Impacts related to tax law changes



(1,689)



(1.02)


Other

239



42



0.02


As adjusted (non-GAAP)

$

20,032



$

17,781



$

10.56



 a Represents net earnings attributable to AbbVie Inc.


Acquisition and integration costs reflect transaction and financing costs, compensation expense and other integration costs as well as amortization of the acquisition date fair value step-up for inventory related to the Allergan acquisition. Milestones and other R&D expenses include milestone payments for previously announced collaborations and the purchase of an FDA priority review voucher from a third party. Other primarily includes tax related items and COVID-19 related charitable contributions and expenses.


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


12M20


Net
revenues


Cost of

products
sold


SG&A


R&D


Acquired

 IPR&D


Interest
expense,
net


Net foreign
exchange
loss


Other
expense,
net

As reported (GAAP)

$

45,804



$

15,387



$

11,299



$

6,557



$

1,198



$

2,280



$

71



$

5,614


Adjusted for specified items:
















Intangible asset amortization



(5,805)














Acquisition and integration costs



(1,292)



(1,416)



(384)





(274)






Milestones and other R&D expenses







(273)










Acquired IPR&D









(1,198)








Change in fair value of contingent 
     consideration















(5,753)


Other

(20)



(115)



(80)



(70)







9



(3)


As adjusted (non-GAAP)

$

45,784



$

8,175



$

9,803



$

5,830



$



$

2,006



$

80



$

(142)



3.     The adjusted tax rate for the full-year 2020 was 11.2 percent, as detailed below:


12M20


Pre-tax earnings


Income

taxes


Tax rate

As reported (GAAP)

$

3,398



$

(1,224)



(36.0)

%

Specified items

16,634



3,469



20.9

%

As adjusted (non-GAAP)

$

20,032



$

2,245



11.2

%

 

AbbVie Inc.

Reconciliation of GAAP Reported to Non-GAAP Adjusted Information

Twelve Months Ended December 31, 2019

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


1.     Specified items impacted results as follows:


12M19


Earnings


Diluted


Pre-tax


After-taxa


EPS

As reported (GAAP)

$

8,426



$

7,882



$

5.28


Adjusted for specified items:






Intangible asset amortization

1,553



1,286



0.86


Acquisition related costs

415



338



0.23


Milestones and other R&D expenses

312



288



0.20


Acquired IPR&D

385



364



0.25


Reata divestiture

(330)



(297)



(0.20)


Litigation matters

(523)



(414)



(0.28)


Change in fair value of contingent consideration

3,182



3,184



2.14


Restructuring

207



168



0.10


Stemcentrx-related impairment

939



823



0.56


Tax audit settlement



(400)



(0.27)


Other

10



102



0.07


As adjusted (non-GAAP)

$

14,576



$

13,324



$

8.94



 a Represents net earnings attributable to AbbVie Inc.


Acquisition related costs reflect transaction and financing costs related to the Allergan acquisition. Milestones and other R&D expenses include milestone payments for previously announced collaborations and the purchase of an FDA priority review voucher from a third party. Acquired IPR&D primarily reflects upfront payments related to R&D collaborations and licensing arrangements with third parties. Litigation matters includes the settlement of an intellectual property dispute with a third party. Restructuring is primarily associated with streamlining global operations. Stemcentrx-related impairment refers to the net impact of the intangible asset impairment and the related fair value adjustment to contingent consideration liabilities. Other primarily includes the impacts of tax law changes and U.S. tax reform.


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


12M19


Cost of

products
sold


SG&A


R&D


Acquired

 IPR&D


Other
operating
income


Interest
expense,
net


Other
expense,
net

As reported (GAAP)

$

7,439



$

6,942



$

6,407



$

385



$

(890)



$

1,509



$

3,006


Adjusted for specified items:














Intangible asset amortization

(1,553)














Acquisition related costs



(103)









(312)




Milestones and other R&D expenses





(312)










Acquired IPR&D







(385)








Reata divestiture









330






Litigation matters



(27)







550






Change in fair value of contingent consideration













(3,182)


Restructuring

(25)



(125)



(57)










Stemcentrx-related impairment





(1,030)









91


Other

(1)





(19)





10






As adjusted (non-GAAP)

$

5,860



$

6,687



$

4,989



$



$



$

1,197



$

(85)



3.     The adjusted tax rate for the full-year 2019 was 8.6 percent, as detailed below:


12M19


Pre-tax earnings


Income

taxes


Tax rate

As reported (GAAP)

$

8,426



$

544



6.5

%

Specified items

6,150



708



11.5

%

As adjusted (non-GAAP)

$

14,576



$

1,252



8.6

%

 

Cision View original content:http://www.prnewswire.com/news-releases/abbvie-reports-full-year-and-fourth-quarter-2020-financial-results-301221231.html

SOURCE AbbVie