PART I. FINANCIAL INFORMATION [Financial Statements and Supplementary Data](index=3&type=section&id=Item%201.%20FINANCIAL%20STATEMENTS%20AND%20SUPPLEMENTARY%20DATA) This section presents AbbVie's unaudited condensed consolidated financial statements for the period ended June 30, 2025, including key statements and detailed supporting notes [Condensed Consolidated Statements of Earnings](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings) AbbVie's Q2 2025 net revenues grew to $15.4 billion, but net earnings decreased to $938 million due to higher operating costs Condensed Consolidated Statements of Earnings (Q2 & H1 2025 vs 2024) | (in millions, except per share data) | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net revenues** | **$15,423** | **$14,462** | **$28,766** | **$26,772** | | Operating earnings | $4,894 | $3,998 | $8,627 | $6,796 | | Net earnings attributable to AbbVie Inc. | $938 | $1,370 | $2,224 | $2,739 | | Diluted earnings per share | $0.52 | $0.77 | $1.24 | $1.53 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased slightly to $137.2 billion by June 30, 2025, while a rise in liabilities led to a total stockholders' deficit of $138 million Condensed Consolidated Balance Sheet Highlights | (in millions) | June 30, 2025 (unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | **$29,261** | **$25,582** | | Intangible assets, net | $57,031 | $60,068 | | Goodwill | $35,638 | $34,956 | | **Total assets** | **$137,182** | **$135,161** | | **Total current liabilities** | **$39,767** | **$38,749** | | Long-term debt and finance lease obligations | $62,959 | $60,340 | | **Total liabilities** | **$137,320** | **$131,797** | | **Total equity (deficit)** | **($138)** | **$3,364** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow for H1 2025 increased to $6.8 billion, with cash and equivalents rising to $6.5 billion at period end Cash Flow Summary (Six Months Ended June 30) | (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Cash flows from operating activities | $6,788 | $6,311 | | Cash flows from investing activities | ($1,916) | ($10,690) | | Cash flows from financing activities | ($3,968) | $4,722 | | **Net change in cash and equivalents** | **$943** | **$316** | | **Cash and equivalents, end of period** | **$6,467** | **$13,130** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed disclosures cover acquisitions, collaborations, financial instruments, litigation, and product revenue breakdowns - AbbVie entered a definitive agreement to acquire Capstan Therapeutics for approximately **$2.1 billion upfront** in June 2025[24](index=24&type=chunk) - Completed the acquisition of Nimble Therapeutics for **$210 million upfront** in January 2025[25](index=25&type=chunk) - Entered into a license option agreement with ADARx Pharmaceuticals with a **$335 million upfront payment** and a licensing agreement with Gubra A/S with a **$350 million upfront payment**[30](index=30&type=chunk)[31](index=31&type=chunk) - The recorded accrual balance for litigation was approximately **$1.8 billion** as of June 30, 2025, down from $2.5 billion at December 31, 2024[97](index=97&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses H1 2025 revenue growth of 7.4% to $28.8 billion, driven by key products offsetting Humira's decline, alongside analysis of margins and liquidity - For the first six months of 2025, worldwide net revenues increased **7% on a reported basis** and **8% on a constant currency basis** to **$28.8 billion**[120](index=120&type=chunk) - Strategic objectives include diversifying revenue, leveraging commercial strength, investing in the pipeline, and returning cash to shareholders[119](index=119&type=chunk) - The company is evaluating the impact of the 'One Big Beautiful Bill Act of 2025' and Executive Order 14297 on drug pricing[123](index=123&type=chunk)[124](index=124&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) H1 2025 net revenues rose 7.4% to $28.8 billion, as strong growth from Skyrizi and Rinvoq offset Humira's decline from biosimilar competition Key Product Revenue Growth (H1 2025 vs H1 2024, Constant Currency) | Product | H1 2025 Net Revenues (in millions) | % Change (Constant Currency) | Key Driver | | :--- | :--- | :--- | :--- | | Skyrizi | $7,848 | +66.2% | Strong market share uptake across all indications. | | Rinvoq | $3,746 | +49.3% | Strong market share uptake across all indications. | | Humira | $2,301 | -54.3% | Direct biosimilar competition. | | Vraylar | $1,665 | +13.5% | Continued market share uptake and market growth. | | Botox Therapeutic | $1,794 | +15.5% | Continued market share uptake and market growth. | | Imbruvica | $1,492 | -10.7% | Decreased demand and unfavorable pricing in the U.S. | - Gross margin as a percentage of net revenues increased to **71% for H1 2025** from 69% in H1 2024, primarily due to increased leverage from revenue growth and lower amortization[152](index=152&type=chunk) - Acquired IPR&D and milestones expense for H1 2025 was **$1.07 billion**, including upfront payments for deals with Gubra A/S ($350M) and ADARx ($335M)[155](index=155&type=chunk) - Other expense, net, included a **$4.3 billion charge** for the change in fair value of contingent consideration liabilities in H1 2025, up from $2.1 billion in H1 2024, driven by higher estimated Skyrizi sales and lower discount rates[158](index=158&type=chunk) [Financial Position, Liquidity and Capital Resources](index=37&type=section&id=FINANCIAL%20POSITION%2C%20LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The company maintained strong liquidity with $6.8 billion in operating cash flow, deploying capital for dividends, debt repayment, and share repurchases Capital Allocation (Six Months Ended June 30, 2025) | Activity | Amount (in millions) | | :--- | :--- | | Cash Dividend Payments | $5,835 | | Share Repurchases | $606 | | Other Acquisitions and Investments | $1,274 | | Capital Expenditures | $504 | - In H1 2025, the company issued **$4.0 billion in new senior notes** and repaid **$6.8 billion in maturing long-term debt**[162](index=162&type=chunk) - The company's stock repurchase authorization had approximately **$2.9 billion remaining** as of June 30, 2025[88](index=88&type=chunk) - In January 2025, AbbVie added a new $3.0 billion five-year revolving credit facility, bringing total revolving credit facilities to **$8.0 billion**, with no amounts outstanding as of June 30, 2025[168](index=168&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section refers to the company's Annual Report on Form 10-K for the year ended December 31, 2024, for a detailed discussion of the company's market risk - The company's discussion of market risk is incorporated by reference from its Annual Report on Form 10-K for the year ended December 31, 2024[175](index=175&type=chunk) [Controls and Procedures](index=39&type=section&id=Item%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls - The CEO and CFO evaluated and concluded that the company's disclosure controls and procedures were **effective** as of the end of the reporting period[176](index=176&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have **materially affected**, or are reasonably likely to materially affect, the company's internal controls[177](index=177&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=40&type=section&id=Item%201.%20LEGAL%20PROCEEDINGS) This section incorporates by reference the detailed information on legal proceedings from Note 12 of the financial statements - Information regarding legal proceedings is provided in Note 12 to the Condensed Consolidated Financial Statements and is incorporated by reference[181](index=181&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=Item%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) During Q2 2025, no shares were repurchased under the public program, with approximately $2.9 billion remaining in the repurchase authorization Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Number of Shares Purchased (in thousands) | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 1,102 | $183.12 | | May 2025 | 995 | $189.46 | | June 2025 | 1,081 | $190.21 | | **Total** | **3,178** | **$187.52** | - The maximum dollar value of shares that may yet be purchased under the company's plans or programs is **$2,896,110,760**[182](index=182&type=chunk) [Other Items](index=40&type=section&id=Item%205.%20OTHER%20ITEMS) No director or officer adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q2 2025 - No director or officer adopted, modified, or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[183](index=183&type=chunk) [Exhibits](index=41&type=section&id=Item%206.%20EXHIBITS) This section lists all exhibits filed with the Form 10-Q, including required certifications and interactive data files - Lists required certifications from the CEO and CFO under Rules 13a-14(a) and Section 906 of the Sarbanes-Oxley Act[186](index=186&type=chunk) - Includes the iXBRL (Inline eXtensible Business Reporting Language) formatted financial statements and cover page data[186](index=186&type=chunk)

Core Insights - AbbVie reported strong second quarter 2025 results with adjusted EPS of $2.97 and net revenues of $15.4 billion, exceeding expectations [1] - The company raised its full-year revenue guidance by $800 million to $60.5 billion, driven by growth in immunology and neuroscience portfolios [1][12] Immunology Performance - SKYRIZI generated global revenue of $4.4 billion, up 61.8% year-over-year, while RINVOQ reached $2 billion, up 41.2%, benefiting from strong market share gains [3] - Combined sales of SKYRIZI and RINVOQ are projected to exceed $25 billion for the year, with SKYRIZI leading in the psoriasis market and RINVOQ expanding in IBD and rheumatology [4][5] R&D Pipeline and Growth Strategy - AbbVie has executed over 30 business development transactions since early 2024, including entering the obesity market and acquiring innovative CAR-T and immunology assets [6] - Recent FDA approvals and positive phase 3 data for RINVOQ position the company for sustained growth as it shifts focus from legacy biologics [7] Neuroscience Growth - The neuroscience portfolio achieved $2.7 billion in revenue, up 24% year-over-year, with significant contributions from Vraylar, Botox Therapeutic, Ubrelvy, and QULIPTA [8] - QULIPTA demonstrated superiority in migraine prevention, contributing to a $100 million upward revision in full-year guidance [9][10] Future Outlook - Management set net revenue guidance at approximately $15.5 billion for the next quarter, with adjusted EPS expected between $3.24 and $3.28 [12] - Updated product-level guidance includes SKYRIZI revenues of $17.1 billion and neuroscience sales of $10.5 billion for the full year [12]

Core Insights - AbbVie has effectively managed its transition post-Humira, with strong sales from newer immunology drugs, Rinvoq and Skyrizi, mitigating the impact of Humira's erosion [1][8] Sales Performance - Skyrizi sales increased by 62% year-over-year to $4.42 billion, while Rinvoq sales rose by 41% to $2.03 billion, driven by strong volume growth and market share gains, particularly in the inflammatory bowel disease (IBD) segment [2][8] - AbbVie expects combined sales of Skyrizi and Rinvoq to exceed $25 billion in 2025, with Skyrizi's sales guidance raised to $17.1 billion and Rinvoq on track for approximately $8.2 billion [3][8] Market Position and Competition - AbbVie faces competition in the immunology space from Johnson & Johnson, which markets Stelara and Tremfya, and Eli Lilly, which has recently expanded its portfolio with the FDA approval of Omvoh for UC and CD [5][6] Valuation and Estimates - AbbVie shares are trading at a premium, with a price/earnings (P/E) ratio of 14.58, slightly above the industry average of 14.28 and higher than its five-year mean of 12.61 [10] - Bottom-line estimate movements for 2025 and 2026 have shown mixed trends over the past week, with slight revisions in estimates [12]

Core Viewpoint - Morgan Stanley's recent update on AbbVie Inc. (ABBV.US) indicates that the company's Q2 2025 revenue and EPS exceeded expectations, with revenue reaching $15.423 billion (up 7% year-over-year) and EPS at $2.97 (up 12% year-over-year) [1][2] Financial Performance - Q2 2025 revenue was $15.423 billion, surpassing the consensus estimate of $15 billion by 3% and aligning with Morgan Stanley's expectation [1][2] - Operating profit was $6.8 billion, exceeding the consensus estimate of $6.6 billion by 4%, but falling short of Morgan Stanley's forecast of $7 billion by 2% [1][2] - EPS was reported at $2.97, which was 3% higher than the consensus estimate of $2.88 but 1% lower than Morgan Stanley's expectation of $3.00 [1][2] Product Performance - Global sales of immunology products totaled $7.63 billion, exceeding both Morgan Stanley's and consensus expectations [2] - Skyrizi generated $4.423 billion in sales, surpassing the expected $4.334 billion by $589 million, reflecting a 2% increase [3] - Rinvoq's sales were $2.028 billion, matching the consensus estimate [3] - Humira's U.S. sales were $802 million, falling short of the consensus estimate of $1 billion [2][4] Guidance and Adjustments - AbbVie raised its 2025 EPS guidance to a range of $11.88-$12.08, up from the previous range of $11.67-$11.87, with a midpoint of $11.98, which is consistent with the consensus estimate of $11.95 but 4% lower than Morgan Stanley's forecast of $12.45 [1][2] - The adjusted EPS for Q2 was projected at $2.84-$2.88, accounting for a $0.42 impact from R&D expenses [2] Year-over-Year Growth - Year-over-year growth for Q2 included a 7% increase in revenue, 6% in gross profit, 11% in operating profit, 9% in pre-tax profit, 12% in net profit, and 12% in EPS [2]

Core Insights - AbbVie has shown significant growth over the past decade, with an initial investment of $1,000 now worth $3,350, or $4,105 if dividends were reinvested [2] - The company is recognized for its solid dividend payments, with a recent yield of 3.4% and an annual payout increase from $3.59 in 2018 to $6.47 in 2023 [4] - AbbVie has performed comparably to the S&P 500, with an average annual gain of 12.84% versus 12.62%, and a more pronounced advantage when dividends are reinvested [5] Company Overview - AbbVie, spun off from Abbott Laboratories in 2013, is a major global pharmaceutical company with a market value exceeding $330 billion [6] - The company specializes in various therapeutic areas, including immunology, oncology, aesthetics, neuroscience, and eye care [6] - Despite losing patent protection for its blockbuster drug Humira, AbbVie has a promising pipeline, with successful sales of immunosuppressants Skyrizi and Rinvoq [6] Investment Considerations - Current stock levels suggest AbbVie is neither overvalued nor undervalued, with a price-to-sales ratio of 5.9, slightly above its five-year average of 4.7 [7] - Long-term investors may find the current valuation acceptable, with potential for future appreciation [7]

Investment Rating - The report suggests a positive outlook for domestic brands and a recovery for international beauty brands in the Chinese market, indicating potential investment opportunities in the cosmetics and medical beauty sectors [2][3]. Core Insights - The cosmetics and medical beauty sector underperformed the market, with the Shenwan Beauty Care Index declining by 3.3% from July 25 to August 1, 2025, while the Shenwan Cosmetics Index fell by 2.6% [3][4]. - Domestic brands showed strong growth during the off-season, with notable increases such as Han Shu up 58%, Proya up 23%, Marubi up 72%, and Kefu Mei up 28%, indicating resilience in the market [7][17]. - International beauty brands, represented by L'Oréal, are recovering in the Chinese market, with a 3% growth in Q2 2025, supported by promotional events like the 618 shopping festival [7][24]. - The report highlights the success of Lin Qingxuan, a high-end domestic skincare brand, which saw revenue grow from 690 million yuan in 2022 to 1.21 billion yuan in 2024, showcasing the potential of domestic brands [13][14]. Summary by Sections Industry Performance - The beauty and medical aesthetics sector has shown weaker performance compared to the overall market, with specific indices declining [3][4]. - The report notes that the cosmetics market is transitioning from quantity to quality, with a significant increase in e-commerce sales, which accounted for 47% of cosmetics sales in 2024, up from 22% in 2016 [9][30]. Key Company Highlights - L'Oréal's sales in China for H1 2025 reached approximately 186.19 billion yuan, with a 3% year-on-year increase, indicating a recovery in the Chinese market [24]. - Procter & Gamble reported a record net sales of approximately 604.95 billion yuan for the 2025 fiscal year, with the beauty segment achieving a net sales of approximately 107.66 billion yuan, reflecting a 2% growth [25]. - Lin Qingxuan's product matrix includes 188 SKUs, with a focus on high-quality natural ingredients, and it has established a strong supply chain and distribution network [14][16]. Market Trends - The report emphasizes the growing market for high-end skincare products, with the market size expected to increase from 749 billion yuan in 2019 to 1,144 billion yuan by 2024, indicating a compound annual growth rate (CAGR) of 13.8% [14][15]. - The domestic brands are gaining market share, with the top ten brands in the skincare market now evenly split between domestic and international brands, reflecting a shift in consumer preferences [30][31].

Dividend Champions Overview - A company must increase its dividend for at least 25 consecutive years to be classified as a Dividend Champion, with nearly 140 stocks currently meeting this criterion [1] AbbVie - AbbVie is a Dividend King, having increased its dividend for 53 consecutive years, with a current yield of 3.39% [3] - Potential tariffs on pharmaceutical imports to the U.S. could impact AbbVie, but analysts believe it may be less affected than peers due to its domestic manufacturing capacity [4] - AbbVie reported strong second-quarter results, with expectations that its drugs Skyrizi and Rinvoq will generate combined sales exceeding the peak annual sales of Humira [5] Chevron - Chevron is a Dividend Champion with 38 consecutive years of dividend increases and a forward yield of 4.5% [6] - The recent acquisition of Hess is a key focus, with integration expected to have a delayed impact on stock performance [7] - Oil prices have declined this year, but Chevron's shares have remained stable; any potential sell-off could present a buying opportunity for long-term investors [8] Target - Target is also a Dividend King, having increased its payout for 54 consecutive years, with a forward dividend yield of 4.5% [9] - The company is facing challenges, including declining consumer confidence and backlash over diversity initiatives, but continues to generate solid profits [10] - Target's stock is attractively valued after recent sell-offs, with a forward price-to-earnings ratio of 14.2 [11]

1.网易云音乐起诉韩国SM娱乐，回应：案件在审理中 企查查资料显示，近日，法院公开杭州乐读科技有限公司、杭州网易云音乐科技有限公司起诉SM ENTERTAINMENT CO.、卡斯梦（上海）文化传播有限公司等开庭信息，案由涉及滥用市场支配地位纠 纷。公告显示，该案件计划将于8月6日，在浙江省杭州市中级人民法院开庭审理。对于前述开庭信息，新 浪科技向网易云音乐求证，网易云音乐方面表示，目前相关案件在审理中，暂时没有更多信息可透露。 点评：网易云音乐起诉SM娱乐，版权争夺战升级，市场格局或重塑。 2.国家发改委：第四批690亿元消费品以旧换新资金将于10月下达 国家发展改革委政研室主任蒋毅8月1日表示，今年第三批690亿元支持消费品以旧换新的超长期特别国债资 金已下达完毕，将于10月份按计划下达第四批690亿元资金。 3.比亚迪发行50亿元短期科创债 8月1日，中国货币网公告显示，比亚迪发行规模50亿元人民币的科技创新债券、期限183天。该期债券票面 利率1.48%。 4.胖东来声明：网络平台相关不实信息存在严重误导性影响 据知情人士透露，生物制药巨头艾伯维（ABBV）正就以约10亿美元收购Gilgamesh P ...

Core Viewpoint - AbbVie reported better-than-expected quarterly earnings, leading to a significant increase in its stock price and positive analyst sentiment [1][2]. Group 1: Earnings Performance - AbbVie shares closed more than 3% higher following the release of its second-quarter figures, outperforming the S&P 500 index, which fell by 1.6% [1]. - The positive earnings report prompted analysts to revise their price targets upward, reflecting a bullish outlook on the stock [2]. Group 2: Analyst Revisions - Morgan Stanley's Terrance Flynn raised his price target for AbbVie shares from $250 to $255, indicating a continued bullish stance [4]. - Analysts Gary Nachman from Raymond James and Vamil Divan from Guggenheim also increased their price targets to $236 (up by $9) and $227 (up from $216), respectively, while maintaining buy recommendations [5]. Group 3: Product Performance - Vamil Divan highlighted the strong sales growth of AbbVie's blockbuster drug Skyrizi, attributing much of the improvement to increased demand and volume growth [6].

Core Insights - AbbVie Inc. reported second-quarter 2025 sales of $15.42 billion, exceeding the consensus estimate of $14.98 billion, with a year-over-year sales increase of 6.6% on a reported basis and 6.5% on an operational basis [1] - Adjusted earnings were reported at $2.97, a 12.1% increase year over year, but fell short of the consensus estimate of $3.23 [1] - The company raised its fiscal 2025 adjusted earnings guidance to a range of $11.88-$12.08 per share, compared to the previous range of $11.67-$11.87 and analysts' estimate of $12.24 [1] Sales and Earnings Performance - The sales growth reflects strong performance in key products, particularly Skyrizi and Rinvoq, which are tracking ahead of management's prior long-term targets [3][4] - Guggenheim Partners updated its revenue and EPS estimates for 2025 to $60.69 billion and $12.04, respectively, from previous estimates of $60.02 billion and $11.92 [3] Market Sentiment and Analyst Ratings - Analysts express confidence in AbbVie's outlook for the second half of 2025, despite expectations of some moderation in net pricing [2] - Guggenheim Partners maintains a Buy rating and has increased the price forecast for AbbVie from $216 to $227 [4] - Morgan Stanley has also maintained an Overweight rating and raised the price forecast from $250 to $255 [5] Stock Performance - AbbVie stock is currently trading higher by 3.24% at $195.14 [6]