AbbVie(ABBV) - 2025 Q1 - Quarterly Report

Financial Performance - AbbVie reported worldwide net revenues of $13.3 billion for the three months ended March 31, 2025, representing an 8% increase on a reported basis and a 10% increase on a constant currency basis compared to the same period in 2024[116]. - The company's operating earnings for the same period were $3.7 billion, with diluted earnings per share of $0.72 and cash flows from operations amounting to $1.6 billion[116]. - Total net revenues for the three months ended March 31, 2025, increased by 8.4% to $13,343 million compared to $12,310 million in the prior year[139]. - Gross margin for the same period was $9,341 million, representing a 14% increase from $8,216 million, with a gross margin percentage of 70%[139]. - Operating cash flows decreased to $1,635 million from $4,040 million in the prior year, primarily due to timing of working capital[147]. Product Performance - AbbVie's immunology product Skyrizi generated total revenues of $3.425 billion, a 70.5% increase compared to $2.008 billion in the same quarter of 2024[129]. - Rinvoq's total revenues reached $1.718 billion, reflecting a 57.2% increase from $1.093 billion year-over-year[129]. - Humira's total revenues decreased by 50.6% to $1.121 billion, down from $2.270 billion in the prior year, indicating a significant decline as the product faces increased competition[129]. - Net revenues for Skyrizi increased by 72% to $1,200 million, driven by strong market share uptake[131]. - Net revenues for Rinvoq increased by 60% to $1,000 million, also driven by strong market share uptake[131]. - Net revenues for Humira decreased by 50% to $1,500 million due to direct biosimilar competition following loss of exclusivity[132]. - Net revenues for Botox Therapeutic increased by 17% to $1,200 million, driven by market share growth[132]. Research and Development - AbbVie's pipeline includes approximately 90 compounds, with around 50 in mid- and late-stage development, focusing on immunology, neuroscience, oncology, aesthetics, and eye care[120]. - The company initiated a Phase 3 clinical trial for Qulipta in February 2025, targeting menstrual migraine prevention[122]. - AbbVie submitted a Biologics License Application for BoNT/E in April 2025, which, if approved, will be the first neurotoxin of its kind available to patients[123]. - AbbVie anticipates several regulatory submissions and data readouts from key clinical trials in the next 12 months, supporting its strategic objectives[115]. - Research and development expenses rose by 7% to $2,067 million, accounting for 15% of net revenues, down from 16% in the prior year[141]. Shareholder Returns and Financial Flexibility - The company is focused on generating substantial operating cash flows to support innovative research and development while returning cash to shareholders through dividends[115]. - The company declared a quarterly cash dividend of $1.64 per share, payable on May 15, 2025[151]. - AbbVie repurchased 3 million shares for $606 million during the three months ended March 31, 2025[152]. - AbbVie entered into a new $3.0 billion five-year revolving credit facility maturing in January 2030, in addition to an existing $5.0 billion facility maturing in March 2028[155]. - As of March 31, 2025, AbbVie had no outstanding amounts under its credit facilities and was in compliance with all covenants[155]. - Subsequent to March 31, 2025, AbbVie entered into a $4.0 billion 364-day term loan credit agreement, with no amounts borrowed as of the filing date[156]. - In December 2023, AbbVie secured a $9.0 billion bridge credit agreement and a $5.0 billion term loan credit agreement for acquisitions, which were terminated after a $15.0 billion issuance of senior notes[157]. - AbbVie believes it has sufficient financial flexibility to issue debt and attract long-term capital to support growth objectives[158]. - There were no changes in AbbVie's credit ratings during the three months ended March 31, 2025, which may impact future financing arrangements[159]. Risks and Accounting Policies - AbbVie cautions that forward-looking statements are subject to risks including competition, regulatory changes, and macroeconomic factors[161]. - The company has not made significant changes to its critical accounting policies during the three months ended March 31, 2025[160]. - For market risk disclosures, refer to Item 7A in AbbVie's Annual Report for the year ended December 31, 2024[162].