AbbVie Reports Strong Second-Quarter 2024 Financial Performance
AbbVie has announced its financial results for the second quarter ending June 30, 2024.
“Our business continues to excel, with second-quarter outcomes significantly surpassing our expectations,” stated Robert A. Michael, AbbVie’s Chief Executive Officer. “Driven by the substantial growth of our ex-Humira portfolio, ongoing investments, and advancements in our pipeline, we are well-positioned to achieve our top-tier long-term goals.”
Second-Quarter Highlights
- Global net revenues reached $14.462 billion, reflecting a 4.3% increase on a reported basis and a 5.6% increase operationally.
- Immunology portfolio revenues totaled $6.971 billion, up 2.3% on a reported basis and 3.5% operationally.
- Humira: Global revenues were $2.814 billion, down 29.8% on a reported basis and 28.9% operationally. U.S. revenues decreased by 31.6% to $2.360 billion, while international revenues fell by 18.9% on a reported basis and 12.5% operationally to $454 million.
- Skyrizi: Global revenues surged to $2.727 billion, marking a 44.8% increase on a reported basis and 45.6% operationally.
- Rinvoq: Global revenues grew to $1.430 billion, a 55.8% increase on a reported basis and 59.2% operationally.
- Oncology portfolio revenues were $1.634 billion, up 10.5% on a reported basis and 12.2% operationally.
- Imbruvica: Global revenues were $833 million, down 8.2%, with U.S. revenues of $595 million and international profit sharing of $238 million.
- Venclexta: Global revenues were $637 million, a 11.5% increase on a reported basis and 15.8% operationally.
- Elahere: Global revenues reached $128 million.
- Neuroscience portfolio revenues amounted to $2.162 billion, up 14.7% on a reported basis and 15.2% operationally.
- Botox Therapeutic: Global revenues were $814 million, a 8.7% increase on a reported basis and 9.6% operationally.
- Vraylar: Global revenues reached $774 million, a 17.6% increase.
- Ubrelvy: Global revenues were $231 million, up 17.5%.
- Qulipta: Global revenues grew by 56.3% to $150 million.
- Aesthetics portfolio revenues were $1.390 billion, reflecting a 0.5% increase on a reported basis and 2.8% operationally.
- Botox Cosmetic: Global revenues were $729 million, a 6.4% increase on a reported basis and 8.6% operationally.
- Juvederm: Global revenues totaled $343 million, down 6.8% on a reported basis and 3.1% operationally.
Financial Metrics
- Gross margin ratio for the quarter was 70.9% on a GAAP basis and 85.2% adjusted.
- SG&A expenses were 23.3% of net revenues on a GAAP basis and 22.9% adjusted.
- R&D expenses were 13.5% of net revenues on a GAAP basis and 13.3% adjusted.
- Operating margin was 27.6% on a GAAP basis and 42.6% adjusted.
- Net interest expense amounted to $506 million.
- Tax rate was 36.0% on a GAAP basis and 18.8% adjusted.
- Diluted EPS was $0.77 on a GAAP basis and $2.65 adjusted, including an adverse impact of $0.52 per share related to acquired IPR&D and milestones expenses.
Recent Developments
- Robert A. Michael began his role as CEO and joined AbbVie’s Board of Directors on July 1, 2024, succeeding Richard A. Gonzalez, who has transitioned to Executive Chairman of the Board.
- The FDA approved Skyrizi for adults with moderately to severely active ulcerative colitis (UC). Additionally, the EMA’s CHMP issued a positive opinion recommending Skyrizi for the same indication.
- AbbVie has submitted applications for Rinvoq to treat giant cell arteritis (GCA) based on Phase 3 trial results.
- At the 2024 Digestive Disease Week, AbbVie presented data reinforcing its commitment to inflammatory bowel diseases (IBD), including results from the SEQUENCE trial and Phase 3 studies of Skyrizi.
- AbbVie completed the acquisition of Landos Biopharma, adding the investigational asset ABBV-113 to its pipeline.
- AbbVie and FutureGen Biopharmaceutical entered a license agreement to develop FG-M701, a next-generation anti-TL1A antibody for IBD.
- Celsius Therapeutics was acquired by AbbVie, adding CEL383, a potential first-in-class anti-TREM1 antibody for IBD.
- The FDA approved Epkinly (epcoritamab) for relapsed or refractory follicular lymphoma, with EMA’s CHMP also issuing a positive opinion.
- Elahere showed positive Phase 2 results in platinum-sensitive ovarian cancer, and the Phase 3 CERVINO trial for ABBV-383 in multiple myeloma has commenced.
- AbbVie presented new data on its solid tumor pipeline at ASCO, including studies on ABBV-400 and ABBV-706.
- The FDA issued a Complete Response Letter for ABBV-951 (foscarbidopa/foslevodopa) for Parkinson’s disease, citing manufacturing issues but no concerns with the drug’s safety or efficacy.
- AbbVie and Gilgamesh Pharmaceuticals formed a collaboration to develop next-generation therapies for psychiatric disorders.
Full-Year 2024 Outlook
AbbVie has updated its adjusted diluted EPS guidance for 2024, now projecting $10.71 – $10.91, including an impact of $0.60 per share from acquired IPR&D and milestones expenses incurred through Q2 2024. This guidance does not account for potential additional expenses from acquired IPR&D and milestones beyond Q2 2024.
