AbbVie(US:ABBV)2024-08-07 19:00Financial Performance - Worldwide net revenues for the six months ended June 30, 2024 were $26.8 billion, a 3% increase on a reported basis and 4% on a constant currency basis[131] - Diluted earnings per share for the six months ended June 30, 2024 was $1.53, including $3.3 billion related to the amortization of intangible assets and $2.1 billion for the change in fair value of contingent consideration liabilities[131] - Gross margin as a percentage of net revenues increased to 71% for the three months and 69% for the six months ended June 30, 2024, due to lower amortization of intangibles[151] - R&D expenses increased to $1,948 million for the three months ended June 30, 2024, up 12% from $1,733 million in the prior year[154] - R&D expenses as a percentage of net revenues increased to 13% for the three months ended June 30, 2024, compared to 12% in the prior year[154] - Interest expense increased to $726 million for the three months ended June 30, 2024, up from $552 million in the prior year, primarily due to financing acquisitions[156] - Interest income increased to $220 million for the three months ended June 30, 2024, up from $98 million in the prior year, driven by higher cash balances and interest rates[157] - Other expense, net included $1.5 billion in charges related to changes in fair value of contingent consideration liabilities for the three months ended June 30, 2024[158] - The effective tax rate increased to 36% for the three months ended June 30, 2024, compared to 22% in the prior year, primarily due to business development activities[159] - Operating cash flows decreased to $6,311 million for the six months ended June 30, 2024, down from $10,512 million in the prior year, due to higher contingent consideration payments[160] - Investing cash flows for the six months ended June 30, 2024 included $9.8 billion cash consideration paid to acquire ImmunoGen[161] - Financing cash flows for the six months ended June 30, 2024 included the issuance of $15.0 billion in senior notes to finance acquisitions[162] Product Revenue Performance - Humira's total revenue decreased by 29.8% to $2.814 billion in the three months ended June 2024 compared to the same period in 2023[144] - Skyrizi's total revenue increased by 44.8% to $2.727 billion in the three months ended June 2024 compared to the same period in 2023[144] - Rinvoq's total revenue increased by 55.8% to $1.430 billion in the three months ended June 2024 compared to the same period in 2023[144] - Imbruvica's total revenue decreased by 8.2% to $833 million in the three months ended June 2024 compared to the same period in 2023[144] - Venclexta's total revenue increased by 11.5% to $637 million in the three months ended June 2024 compared to the same period in 2023[144] - Botox Cosmetic's total revenue increased by 6.4% to $729 million in the three months ended June 2024 compared to the same period in 2023[144] - Vraylar's total revenue increased by 17.6% to $774 million in the three months ended June 2024 compared to the same period in 2023[144] - Ubrelvy's total revenue increased by 17.5% to $231 million in the three months ended June 2024 compared to the same period in 2023[144] - Qulipta's total revenue increased by 56.3% to $150 million in the three months ended June 2024 compared to the same period in 2023[144] - Epkinly's total revenue increased by over 100% to $36 million in the three months ended June 2024 compared to the same period in 2023[144] - Global Humira sales decreased by 29% for the three months and 32% for the six months ended June 30, 2024, driven by biosimilar competition[146] - Skyrizi net revenues increased by 46% for the three months and 47% for the six months ended June 30, 2024, driven by strong market share uptake[146] - Rinvoq net revenues increased by 59% for the three months and 60% for the six months ended June 30, 2024, driven by market growth[147] - Imbruvica global revenues decreased by 8% for the three months and 6% for the six months ended June 30, 2024, due to decreased demand in the U.S.[147] - Venclexta net revenues increased by 16% for the three and six months ended June 30, 2024, driven by market share uptake[147] - Elahere net revenues were $128 million for the three months and $192 million for the six months ended June 30, 2024, following the ImmunoGen acquisition[148] - Botox Cosmetic net revenues increased by 9% for the three months and 3% for the six months ended June 30, 2024, driven by favorable pricing[148] - Vraylar net revenues increased by 18% for the three months and 20% for the six months ended June 30, 2024, driven by market share uptake[150] - Qulipta net revenues increased by 56% for the three months and 73% for the six months ended June 30, 2024, driven by strong market share uptake[150] Pipeline and Product Development - AbbVie completed the acquisition of ImmunoGen, Inc. on February 12, 2024, enhancing its solid tumor pipeline and antibody-drug conjugate (ADC) therapies[128] - AbbVie's pipeline includes approximately 90 compounds, devices, or indications in development, with about 50 in mid- and late-stage development[133] - Rinvoq achieved positive top-line results in Phase 3 trials for giant cell arteritis (GCA) and atopic dermatitis, and received FDA approval for pediatric polyarticular juvenile idiopathic arthritis (pJIA) and psoriatic arthritis (PsA)[135] - Skyrizi received FDA and European Commission approvals for the treatment of moderately to severely active ulcerative colitis (UC)[136] - Epkinly received FDA approval for relapsed or refractory follicular lymphoma (FL) and a positive opinion from the EMA Committee for Medicinal Products for Human Use[138] - Elahere received full FDA approval for FRα-positive, platinum-resistant epithelial ovarian cancer and positive Phase 2 results for platinum-sensitive ovarian cancer[139] - AbbVie initiated a Phase 3 clinical trial for ABBV-383 in relapsed or refractory multiple myeloma[139] - ABBV-951 received a Complete Response Letter (CRL) from the FDA for the treatment of motor fluctuations in advanced Parkinson's disease, citing issues with a third-party manufacturer[141] - Acquired IPR&D and milestones expense for the three months ended June 30, 2024 included a $250 million upfront payment for Celsius Therapeutics[155]