AbbVie(ABBV) - 2024 Q1 - Quarterly Report

Financial Performance - AbbVie reported worldwide net revenues of $12.3 billion for the three months ended March 31, 2024, representing a 1% increase on a reported basis and a 2% increase on a constant currency basis compared to the same period in 2023[129]. - The company achieved operating earnings of $2.8 billion and diluted earnings per share of $0.77 for the same period, which included after-tax costs of $1.6 billion related to the amortization of intangible assets[129][131]. - In the U.S., AbbVie's net revenues were $9.0 billion, reflecting a decrease of 1.7% at actual currency rates, while international revenues increased by 8.1% to $3.3 billion[141]. - Global Humira sales decreased 35% for the three months ended March 31, 2024, with a 40% decrease in the United States due to direct biosimilar competition[144]. - Net revenues for Skyrizi increased 48% for the three months ended March 31, 2024, driven by strong market share uptake and market growth[144]. - Net revenues for Rinvoq increased 62% for the three months ended March 31, 2024, primarily due to continued strong market share uptake[145]. - Global Imbruvica revenues decreased 5% for the three months ended March 31, 2024, driven by decreased demand and lower market share in the United States[145]. - Net revenues for Venclexta increased 16% for the three months ended March 31, 2024, driven by market share uptake and market growth[145]. - Net revenues for Botox Cosmetic decreased 3% for the three months ended March 31, 2024, primarily due to customer inventory destocking[146]. - Net revenues for Juvederm Collection decreased 14% for the three months ended March 31, 2024, impacted by customer inventory destocking and decreased consumer demand[146]. - Net revenues for Vraylar increased 24% for the three months ended March 31, 2024, driven by continued market share uptake[147]. - Net revenues for Ubrelvy increased 34% for the three months ended March 31, 2024, due to market share uptake and market growth[147]. - Net revenues for Qulipta increased 98% for the three months ended March 31, 2024, driven by strong market share uptake and regulatory approval for chronic migraine treatment[147]. - Gross margin for the three months ended March 31, 2024 was $8,216 million, remaining flat at 67% of net revenues compared to the prior year[148]. Expenses and Cash Flow - Selling, general and administrative (SG&A) expenses increased by 9% to $3,315 million, representing 27% of net revenues, impacted by acquisition costs related to ImmunoGen[149]. - Research and development (R&D) expenses decreased by 15% to $1,939 million, accounting for 16% of net revenues, primarily due to a prior year impairment charge[150]. - Upfront charges for acquired IPR&D and milestones totaled $164 million for the three months ended March 31, 2024, compared to $150 million in the prior year[151]. - Operating cash flows decreased to $4,040 million from $4,193 million in the prior year, primarily due to ImmunoGen acquisition-related expenses[156]. - Investing cash flows included $9.8 billion for the acquisition of ImmunoGen, with total cash consideration paid offset by cash acquired of $591 million[157]. - Financing cash flows included the issuance of $15.0 billion in senior notes to finance the ImmunoGen acquisition and proposed acquisition of Cerevel Therapeutics[158]. Strategic Developments - AbbVie completed the acquisition of ImmunoGen on February 12, 2024, enhancing its solid tumor pipeline and immuno-oncology assets, which are expected to create new treatment possibilities[126]. - AbbVie has approximately 90 compounds in its pipeline, with around 50 in mid- and late-stage development, focusing on immunology, oncology, aesthetics, neuroscience, and eye care[131]. - The company anticipates several regulatory submissions and data readouts from key clinical trials in the next 12 months as part of its strategic objectives[128]. - AbbVie initiated a Phase 3 study for Rinvoq in January 2024, targeting non-segmental vitiligo, and reported positive results from multiple trials in April 2024[132][133]. - The FDA granted full approval for Elahere in March 2024 for treating platinum-resistant epithelial ovarian cancer, expanding AbbVie's oncology portfolio[136]. - AbbVie launched Produodopa (ABBV-951) in the EU for advanced Parkinson's disease in January 2024, addressing severe motor fluctuations[139]. Shareholder Returns - The company aims to maximize the benefits of a diversified revenue base and continue investing in its pipeline while returning cash to shareholders through dividends[128]. - The effective tax rate decreased to 22% for the three months ended March 31, 2024, down from 49% in the prior year, primarily due to changes in fair value of contingent consideration[155]. - The company repurchased 5 million shares for $959 million during the three months ended March 31, 2024, compared to 10 million shares for $1.6 billion in the prior year[160]. - The board of directors declared a quarterly cash dividend of $1.55 per share, payable on May 15, 2024, reflecting the company's ongoing commitment to return capital to shareholders[159].