ABBV
AbbVie Reports Third-Quarter 2014 Financial Results AbbVie (NYSE: ABBV) today announced financial results for the third quarter ended Sept. 30, 2014. Our third-quarter results reflect the strong...
Friday, October 31, 2014 4 min read
Key Takeaway: NORTH CHICAGO, Ill. , Oct. 31, 2014 /PRNewswire/ -- AbbVie (NYSE: ABBV ) today announced financial results for the third quarter ended Sept. 30, 2014 .
"Our third-quarter results reflect the strong performance of our business with double-digit growth from HUMIRA and several othe
Full Press Release Details
NORTH CHICAGO, Ill. , Oct. 31, 2014 /PRNewswire/ -- AbbVie (NYSE: ABBV ) today announced financial results for the third quarter ended Sept. 30, 2014 .
"Our third-quarter results reflect the strong performance of our business with double-digit growth from HUMIRA and several other key brands. Our underlying business grew nearly 14 percent in the quarter excluding lipids," said Richard A. Gonzalez , chairman and chief executive officer, AbbVie. "We exceeded our outlook for the quarter and have significantly raised our original 2014 guidance. In the fourth quarter, we look forward to the U.S. approval of our interferon-free HCV combination, which will further accelerate sales and earnings growth in 2015 and beyond."
Key Events from the Third Quarter
Today, AbbVie is raising its adjusted diluted earnings-per-share guidance for the full-year 2014 to $3.25 to $3.27 from $3.06 to $3.16 . AbbVie's 2014 outlook continues to exclude any potential revenue from the expected 2014 U.S. launch of its HCV therapy. The company's 2014 adjusted diluted earnings-per-share guidance excludes $2.10 per share of intangible asset amortization expense and other specified items primarily associated with separation costs, acquired IPR&D, Shire transaction costs and the Branded Prescription Drug Fee. Including these items, AbbVie's diluted earnings-per-share guidance is $1.15 to $1.17 on a GAAP basis.
AbbVie is a global, research-based biopharmaceutical company formed in 2013 following separation from Abbott Laboratories. The company's mission is to use its expertise, dedicated people and unique approach to innovation to develop and market advanced therapies that address some of the world's most complex and serious diseases. AbbVie employs approximately 25,000 people worldwide and markets medicines in more than 170 countries. For further information on the company and its people, portfolio and commitments, please visit
www.abbvie.com . Follow @abbvie on Twitter or view careers on our Facebook or LinkedIn page.
AbbVie will host an investor conference call today at 8:00 a.m. Central time to discuss our third-quarter performance. Participating on the call will be Rick Gonzalez , chairman and chief executive officer; Bill Chase , executive vice president and chief financial officer; Laura Schumacher , executive vice president, business development, external affairs and general counsel; Mike Severino , executive vice president, research and development and chief scientific officer; and Larry Peepo , vice president, investor relations. The call will be webcast through AbbVie's Web site at
www.abbvieinvestor.com .
Non-GAAP Financial Results
Financial results for 2013 and 2014 are presented on both a reported and a non-GAAP basis. Reported results were prepared in accordance with GAAP and include all revenue and expenses recognized during the period. Non-GAAP results adjust for certain non-cash items and for factors that are unusual or unpredictable, and exclude those costs, expenses, and other specified items presented in the reconciliation tables later in this release. AbbVie's management believes non-GAAP financial measures provide useful information to investors regarding AbbVie's results of operations and assist management, analysts, and investors in evaluating the performance of the business. Non-GAAP financial measures should be considered in addition to, and not as a substitute for, measures of financial performance prepared in accordance with GAAP. The company's 2014 financial guidance is also being provided on both a reported and a non-GAAP basis.
Forward-Looking Statements
Some statements in this news release may be forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "anticipate," "project" and similar expressions, among others, generally identify forward-looking statements. AbbVie cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. Such risks and uncertainties include, but are not limited to, challenges to intellectual property, competition from other products, difficulties inherent in the research and development process, adverse litigation or government action, and changes to laws and regulations applicable to our industry. Additional information about the economic, competitive, governmental, technological and other factors that may affect AbbVie's operations is set forth in Item 1A, "Risk Factors," in AbbVie's 2013 Annual Report on Form 10-K and in Item 1A, "Risk Factors" of Part II of AbbVie's second quarter 2014 Quarterly Report on Form 10-Q, which have been filed with the Securities and Exchange Commission. AbbVie undertakes no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments, except as required by law.
| AbbVie Inc. Key Product Sales Quarter Ended Sept. 30, 2014 (Unaudited) |
| | | % Change vs. 3Q13 |
| | Sales (in millions) | | International | Total |
| | U.S. | Int'l. | Total | U.S. | Operational | Reported | Operational | Reported |
| TOTAL SALES | $2,809 | $2,210 | $5,019 | 7.4% | 9.5% | 8.2% | 8.3% | 7.8% |
| Humira | 1,739 | 1,516 | 3,255 | 25.3 | 10.3 | 9.7 | 17.8 | 17.5 |
| Kaletra | 53 | 203 | 256 | (14.1) | 19.7 | 16.5 | 10.7 | 8.4 |
| AndroGel | 232 | -- | 232 | (6.7) | n/a | n/a | (6.7) | (6.7) |
| Synthroid | 200 | -- | 200 | 24.3 | n/a | n/a | 24.3 | 24.3 |
| Lupron | 147 | 49 | 196 | 3.9 | (8.4) | (10.0) | 0.4 | -- |
| Creon | 148 | -- | 148 | 47.6 | n/a | n/a | 47.6 | 47.6 |
| Sevoflurane | 20 | 114 | 134 | 0.9 | (1.1) | (3.3) | (0.8) | (2.7) |
| Synagis | -- | 109 | 109 | n/a | 18.3 | 11.9 | 18.3 | 11.9 |
| Dyslipidemia | 63 | -- | 63 | (76.9) | n/a | n/a | (76.9) | (76.9) |
| Duodopa | -- | 56 | 56 | n/a | 20.8 | 20.2 | 20.8 | 20.2 |
| Note: "Operational" growth reflects the percentage change over the prior year excluding the impact of exchange rate fluctuations. Dyslipidemia includes sales of TriCor/Trilipix, Niaspan, Simcor and Advicor. |
| n/a = not applicable |
| AbbVie Inc. Key Product Sales Nine Months Ended Sept. 30, 2014 (Unaudited) |
| | | % Change vs. 9M13 |
| | Sales (in millions) | | International | Total |
| | U.S. | Int'l. | Total | U.S. | Operational | Reported | Operational | Reported |
| TOTAL SALES | $7,681 | $6,827 | $14,508 | 4.3% | 9.3% | 8.1% | 6.6% | 6.1% |
| Humira | 4,592 | 4,588 | 9,180 | 28.7 | 13.4 | 13.2 | 20.6 | 20.5 |
| AndroGel | 704 | -- | 704 | (5.7) | n/a | n/a | (5.7) | (5.7) |
| Kaletra | 163 | 504 | 667 | (9.9) | (6.6) | (8.8) | (7.4) | (9.1) |
| Lupron | 420 | 151 | 571 | 2.5 | (5.7) | (8.9) | 0.1 | (0.8) |
| Synagis | -- | 537 | 537 | n/a | 12.0 | 4.7 | 12.0 | 4.7 |
| Synthroid | 523 | -- | 523 | 20.8 | n/a | n/a | 20.8 | 20.8 |
| Sevoflurane | 61 | 369 | 430 | 12.1 | 5.7 | 3.2 | 6.6 | 4.4 |
| Creon | 365 | -- | 365 | 23.2 | n/a | n/a | 23.2 | 23.2 |
| Dyslipidemia | 224 | -- | 224 | (77.3) | n/a | n/a | (77.3) | (77.3) |
| Duodopa | -- | 164 | 164 | n/a | 24.5 | 26.9 | 24.5 | 26.9 |
| Note: "Operational" growth reflects the percentage change over the prior year excluding the impact of exchange rate fluctuations. Dyslipidemia includes sales of TriCor/Trilipix, Niaspan, Simcor and Advicor. |
| n/a = not applicable |
| AbbVie Inc. Consolidated Statements of Earnings Quarter and Nine Months Ended Sept. 30, 2014 and 2013 (Unaudited) (In millions, except per share data) |
| | Third Quarter Ended Sept. 30 | | Nine Months Ended Sept. 30 | |
| | 2014 | | 2013 | | 2014 | | 2013 | |
| Net sales | $5,019 | | $4,658 | | $14,508 | | $13,679 | |
| Cost of products sold | 1,094 | | 1,092 | | 3,307 | | 3,299 | |
| Selling, general and administrative | 1,595 | | 1,261 | | 4,383 | | 3,904 | |
| Research and development | 812 | | 714 | | 2,418 | | 2,057 | |
| Acquired in-process research and development | 308 | | 220 | | 324 | | 290 | |
| Total operating cost and expenses | 3,809 | | 3,287 | | 10,432 | | 9,550 | |
| Operating earnings | 1,210 | | 1,371 | | 4,076 | | 4,129 | |
| Interest expense, net | 128 | | 69 | | 262 | | 210 | |
| Net foreign exchange loss | 174 | | 11 | | 182 | | 40 | |
| Other (income) expense, net | 221 | | 5 | | 226 | | (14) | |
| Earnings before income tax expense | 687 | | 1,286 | | 3,406 | | 3,893 | |
| Income tax expense | 181 | | 322 | | 822 | | 893 | |
| Net earnings | $506 | | $964 | | $2,584 | | $3,000 | |
| Diluted earnings per share | $0.31 | | $0.60 | | $1.60 | | $1.86 | |
| Diluted earnings per share, excluding specified items | $0.89 | | $0.82 | | $2.43 | | $2.32 | a) |
| Average diluted shares outstanding | 1,610 | | 1,605 | | 1,609 | | 1,602 | |
| a) Refer to the Reconciliation of GAAP Reported to Non-GAAP Adjusted Information for further details. |
| Note: The computation of diluted earnings per share for the quarter and nine months ended Sept. 30, 2014 and 2013 were calculated pursuant to the two-class method which requires the allocation of net earnings between common stockholders and participating security holders. |
| | AbbVie Inc. Reconciliation of GAAP Reported to Non-GAAP Adjusted Information Quarter Ended Sept. 30, 2014 (Unaudited) (In millions, except per share data) |
| 1. Specified items impacted results as follows: |
| | | 3Q14 |
| | | Earnings | Diluted |
| | | Pre-tax | After-tax | EPS |
| | As reported (GAAP) | $687 | $506 | $0.31 |
| | Adjusted for specified items: | | | |
| | Intangible asset amortization | 98 | 70 | 0.04 |
| | Separation costs | 109 | 98 | 0.06 |
| | Acquired IPR&D | 308 | 206 | 0.13 |
| | Calico collaboration | 250 | 250 | 0.15 |
| | Shire transaction costs | 276 | 172 | 0.11 |
| | Other | 139 | 147 | 0.09 |
| | As adjusted (non-GAAP) | $1,867 | $1,449 | $0.89 |
| 2. The impact of the specified items by line item was as follows: |
| | | 3Q14 |
| | | Cost of products sold | SG&A | R&D | Acquired IPR&D | Net foreign exchange loss | Interest expense (income) | Other (income) expense |
| | As reported (GAAP) | $1,094 | $1,595 | $812 | $308 | $174 | $128 | $221 |
| | Adjusted for specified items: | | | | | | | |
| | Intangible asset amortization | (98) | -- | -- | -- | -- | -- | -- |
| | Separation costs | (4) | (104) | (1) | -- | -- | -- | -- |
| | Acquired IPR&D | -- | -- | -- | (308) | -- | -- | -- |
| | Calico collaboration | -- | -- | -- | -- | -- | -- | (250) |
| | Shire transaction costs | -- | (36) | -- | -- | (165) | (75) | -- |
| | Other | (44) | (129) | -- | -- | -- | -- | 34 |
| | As adjusted (non-GAAP) | $948 | $1,326 | $811 | -- | $9 | $53 | $5 |
| | | 3Q14 |
| | | Pre-tax | Income | |
| | | income | Taxes | Tax rate |
| | As reported (GAAP) | $687 | $181 | 26.3% |
| | Specified items | 1,180 | 237 | 20.1% |
| | As adjusted (non-GAAP) | $1,867 | $418 | 22.4% |
| | AbbVie Inc. |
| | Reconciliation of GAAP Reported to Non-GAAP Adjusted Information |
| | Quarter Ended Sept. 30, 2013 |
| | (Unaudited) (In millions, except per share data) |
| 1. Specified items impacted results as follows: |
| | | 3Q13 |
| | | Earnings | Diluted |
| | | Pre-tax | After-tax | EPS |
| | As reported (GAAP) | $1,286 | $964 | $0.60 |
| | Adjusted for specified items: | | | |
| | Intangible asset amortization | 137 | 98 | 0.06 |
| | Separation costs | 51 | 33 | 0.02 |
| | Acquired IPR&D | 220 | 220 | 0.13 |
| | Restructuring/Other | 14 | 12 | 0.01 |
| | As adjusted (non-GAAP) | $1,708 | $1,327 | $0.82 |
| 2. The impact of the specified items by line item was as follows: |
| | | 3Q13 |
| | | Cost of products sold | SG&A | R&D | Acquired IPR&D | Other (income) expense |
| | As reported (GAAP) | $1,092 | $1,261 | $714 | $220 | $5 |
| | Adjusted for specified items: | | | | | |
| | Intangible asset amortization | (137) | -- | -- | -- | -- |
| | Separation costs | (4) | (46) | (1) | -- | -- |
| | Acquired IPR&D | -- | -- | -- | (220) | -- |
| | Restructuring/Other | (7) | -- | (4) | -- | (3) |
| | As adjusted (non-GAAP) | $944 | $1,215 | $709 | -- | $2 |
| | | 3Q13 |
| | | Pre-tax | Income | |
| | | income | taxes | Tax rate |
| | As reported (GAAP) | $1,286 | $322 | 25.0% |
| | Specified items | 422 | 59 | 14.0% |
| | As adjusted (non-GAAP) | $1,708 | $381 | 22.3% |
| AbbVie Inc. |
| Reconciliation of GAAP Reported to Non-GAAP Adjusted Information |
| Nine Months Ended Sept. 30, 2014 |
| (Unaudited) (In millions, except per share data) |
| 1. Specified items impacted results as follows: |
| | | 9M14 |
| | | Earnings | Diluted |
| | | Pre-tax | After-tax | EPS |
| | As reported (GAAP) | $3,406 | $2,584 | $1.60 |
| | Adjusted for specified items: | | | |
| | Intangible asset amortization | 307 | 218 | 0.14 |
| | Separation costs | 299 | 282 | 0.17 |
| | R&D | 40 | 40 | 0.03 |
| | Acquired IPR&D | 324 | 222 | 0.14 |
| | Calico collaboration | 250 | 250 | 0.15 |
| | Shire transaction costs | 283 | 179 | 0.11 |
| | Other | 148 | 154 | 0.09 |
| | As adjusted (non-GAAP) | $5,057 | $3,929 | $2.43 |
| 2. The impact of the specified items by line item was as follows: |
| | | 9M14 |
| | | Cost of products sold | SG&A | R&D | Acquired IPR&D | Net foreign exchange loss | Interest expense (income) | Other (income) expense |
| | As reported (GAAP) | $3,307 | $4,383 | $2,418 | $324 | $182 | $262 | $226 |
| | Adjusted for specified items: | | | | | | | |
| | Intangible asset amortization | (307) | -- | -- | -- | -- | -- | -- |
| | Separation costs | (10) | (286) | (3) | -- | -- | -- | -- |
| | R&D | -- | -- | (40) | -- | -- | -- | -- |
| | Acquired IPR&D | -- | -- | -- | (324) | -- | -- | -- |
| | Calico collaboration | -- | -- | -- | -- | -- | -- | (250) |
| | Shire transaction costs | -- | (43) | -- | -- | (165) | (75) | -- |
| | Other | (51) | (131) | -- | -- | -- | -- | 34 |
| | As adjusted (non-GAAP) | $2,939 | $3,923 | $2,375 | -- | $17 | $187 | $10 |
| | | 9M14 |
| | | Pre-tax | Income | |
| | | income | Taxes | Tax rate |
| | As reported (GAAP) | $3,406 | $822 | 24.1% |
| | Specified items | 1,651 | 306 | 18.5% |
| | As adjusted (non-GAAP) | $5,057 | $1,128 | 22.3% |
| AbbVie Inc. |
| Reconciliation of GAAP Reported to Non-GAAP Adjusted Information |
| Nine Months Ended Sept. 30, 2013 |
| (Unaudited) (In millions, except per share data) |
| 1. Specified items impacted results as follows: |
| | | 9M13 |
| | | Earnings | Diluted |
| | | Pre-tax | After-tax | EPS |
| | As reported (GAAP) | $3,893 | $3,000 | $1.86 |
| | Adjusted for specified items: | | | |
| | Intangible asset amortization | 408 | 294 | 0.18 |
| | Separation costs | 152 | 97 | 0.06 |
| | Acquired IPR&D | 290 | 290 | 0.18 |
| | Restructuring/Other | 70 | 60 | 0.04 |
| | As adjusted (non-GAAP) | $4,813 | $3,741 | $2.32 |
| 2. The impact of the specified items by line item was as follows: |
| | | 9M13 |
| | | Cost of products sold | SG&A | R&D | Acquired IPR&D | Net foreign exchange loss | Other (income) expense |
| | As reported (GAAP) | $3,299 | $3,904 | $2,057 | $290 | $40 | ($14) |
| | Adjusted for specified items: | | | | | | |
| | Intangible asset amortization | (408) | -- | -- | -- | -- | -- |
| | Separation costs | (11) | (135) | (6) | -- | -- | -- |
| | Acquired IPR&D | -- | -- | -- | (290) | -- | -- |
| | Restructuring/Other | 3 | (38) | (15) | -- | (11) | (9) |
| | As adjusted (non-GAAP) | $2,883 | $3,731 | $2,036 | -- | $29 | ($23) |
| | | 9M13 |
| | | Pre-tax | Income | |
| | | income | taxes | Tax rate |
| | As reported (GAAP) | $3,893 | $893 | 22.9% |
| | Specified items | 920 | 179 | 19.5% |
| | As adjusted (non-GAAP) | $4,813 | $1,072 | 22.3% |
Related Links
21 %