AbbVie(ABBV) - 2025 Q3 - Quarterly Report

Financial Performance - AbbVie reported worldwide net revenues of $44.5 billion for the nine months ended September 30, 2025, representing an 8% increase on a reported basis [117]. - Operating earnings for the same period were $10.5 billion, with diluted earnings per share at $1.34 and cash flows from operations amounting to $13.8 billion [117]. - In the three months ended September 30, 2025, net revenues were $14,460 million, a decrease of 9.1% compared to $15,776 million in the same period of 2024 [140]. - U.S. revenues for the same period were $11,148 million, reflecting an 8.2% decline from $12,068 million in 2024 [140]. - International revenues decreased by 12.0% to $3,312 million from $3,708 million year-over-year [140]. - For the nine months ended September 30, 2025, total net revenues increased by 8.0% to $44,542 million compared to $41,232 million in 2024 [140]. Product Performance - Immunology product Skyrizi generated U.S. revenues of $4,085 million, a 47.0% increase from $2,778 million in the prior year [142]. - Rinvoq's U.S. revenues rose by 33.3% to $1,559 million from $1,170 million year-over-year [142]. - Humira's U.S. revenues significantly declined by 65.0% to $619 million from $1,765 million in the same quarter of 2024 [142]. - Vraylar's U.S. revenues increased by 6.7% to $931 million compared to $873 million in the previous year [142]. - Botox Therapeutic revenues in the U.S. rose by 16.6% to $825 million from $708 million year-over-year [142]. - Juvederm Collection net revenues decreased by 3% for the three months and 17% for the nine months ended September 30, 2025, primarily due to decreased global consumer demand [151]. - Skyrizi net revenues increased by 46% for the three months and 58% for the nine months ended September 30, 2025, driven by strong market share uptake and market growth [144]. - Rinvoq net revenues increased by 34% for the three months and 43% for the nine months ended September 30, 2025, attributed to continued strong market share uptake [145]. - Humira net revenues decreased by 56% for the three months and 55% for the nine months ended September 30, 2025, primarily due to direct biosimilar competition following the loss of exclusivity [145]. Research and Development - AbbVie has approximately 90 compounds in its pipeline, with around 60 in mid- and late-stage development, focusing on immunology, neuroscience, oncology, aesthetics, and eye care [125]. - The U.S. FDA granted accelerated approval for Emrelis for treating advanced non-small cell lung cancer in May 2025 [129]. - AbbVie submitted a New Drug Application for Tavapadon for Parkinson's disease treatment in September 2025 [128]. - AbbVie expects several regulatory submissions and data readouts from key clinical trials in the next 12 months [116]. Expenses and Cash Flow - The company incurred costs of $5.6 billion related to the amortization of intangible assets and $5.1 billion for changes in fair value of contingent consideration liabilities [118]. - Selling, general and administrative expenses decreased by 15% for the three months ended September 30, 2025, totaling $3,569 million, and represented 23% of net revenues [153]. - Research and development expenses increased by 9% for the three months ended September 30, 2025, totaling $2,319 million, maintaining 15% of net revenues [154]. - Interest expense increased to $739 million for the three months ended September 30, 2025, primarily due to higher average interest rates [156]. - For the nine months ended September 30, 2025, the company reported operating cash flows of $13.8 billion, an increase from $11.8 billion in the prior year, primarily due to higher net revenues and lower acquisition-related cash expenses [160]. Financing and Capital Management - The company anticipates a favorable impact on cash tax payments due to the provisions of the One Big Beautiful Bill Act of 2025 [121]. - AbbVie settled litigation with generic manufacturers for Rinvoq, preventing generic entry before April 2037 in the U.S. [123]. - Cash dividend payments increased to $8.7 billion for the nine months ended September 30, 2025, compared to $8.3 billion in the prior year, driven by an increase in the quarterly dividend rate [163]. - The company repurchased 3 million shares for $606 million during the nine months ended September 30, 2025, compared to 5 million shares for $959 million in the same period of 2024 [165]. - AbbVie entered into a new $3.0 billion five-year revolving credit facility in January 2025, in addition to an existing $5.0 billion facility, with no amounts outstanding as of September 30, 2025 [168]. - The company has sufficient financial flexibility to issue debt and attract long-term capital to support growth objectives, despite potential adverse impacts from market conditions [171]. - There were no changes in the company's credit ratings during the nine months ended September 30, 2025, which may affect future financing arrangements [172].