10-K/APeriod: FY2012

AbbVie Inc. Annual Report (Amendment), Year Ended Dec 31, 2012

Filed April 5, 2013For Securities:ABBV

Summary

This 10-K/A filing from AbbVie Inc., filed on April 5, 2013, primarily serves to amend the independent registered public accounting firm's report for a technical correction. The core financial information and business overview remain consistent with the original filing. AbbVie, having recently separated from Abbott Laboratories on January 1, 2013, operates as an independent global biopharmaceutical company. The company's primary revenue driver is HUMIRA, which generated substantial sales in 2012 and is expected to continue its growth trajectory. AbbVie's diverse product portfolio also includes treatments for metabolic, endocrine, and other conditions. Investors should note AbbVie's significant investment in research and development to fuel its pipeline, with over 20 compounds in Phase II or III development. Key therapeutic areas of focus include immunology, oncology, neuroscience, and virology. The company also faces challenges such as patent expirations, generic competition, and evolving regulatory landscapes, particularly concerning biosimilars. The filing also details AbbVie's financial position, highlighting strong operating cash flows and a significant debt issuance in 2012 to support its operations as a newly independent entity.

Financial Highlights

46 data points
Beta

Revenue

$18.38B

75.5% Gross Margin

Net Income

$5.28B

28.7% Net Margin

EPS (Diluted)

$3.35

Total Assets

$27.01B

Cash & Equivalents

$5.90B

Free Cash Flow

$6.01B

Financial Statements
Beta
Revenue$18.38B
Cost of Revenue$4.51B
Gross Profit$13.87B
SG&A Expenses$4.99B
Operating Expenses$12.56B
Operating Income$5.82B
Interest Expense$104.00M
Net Income$5.28B
EPS (Basic)$3.35
EPS (Diluted)$3.35
Shares Outstanding (Basic)1.58B
Shares Outstanding (Diluted)1.58B

Key Highlights

  • 1AbbVie completed its separation from Abbott Laboratories on January 1, 2013, establishing itself as an independent global biopharmaceutical company.
  • 2HUMIRA was AbbVie's leading product, generating approximately $9.3 billion in worldwide sales in 2012, representing about 50% of total sales.
  • 3The company invested $2.8 billion in research and development in 2012, with a pipeline of over 20 compounds or indications in Phase II or III development.
  • 4Key therapeutic areas for R&D include immunology, oncology, neuroscience, and virology.
  • 5AbbVie is subject to patent expirations, with the U.S. composition of matter patent for HUMIRA expected to expire in December 2016.
  • 6The company issued $14.7 billion in long-term debt in November 2012.
  • 7AbbVie generated strong operating cash flows of $6.3 billion in 2012.

Frequently Asked Questions

This filing is an amendment (10-K/A) to correct a drafting error in the Report of Independent Registered Public Accounting Firm, specifically the reference to "auditing standards" versus "the standards" of the Public Company Accounting Oversight Board (PCAOB). This amendment does not alter the financial position or results of operations of AbbVie.

AbbVie's primary product is HUMIRA, a biologic therapy. In 2012, HUMIRA generated approximately $9.3 billion in worldwide sales, accounting for about 50% of AbbVie's total sales for the year.

AbbVie's strategic objectives include maximizing its existing portfolio through new indications and geographic expansion, advancing its product pipeline through significant R&D investment, and expanding its presence in emerging markets. The company is focused on therapeutic areas such as immunology, oncology, neuroscience, and virology.

AbbVie faces risks related to patent expirations, which can lead to generic competition and a significant reduction in sales for affected products. The company also faces challenges from biosimilars, competition from new therapies, and potential regulatory changes. For example, the U.S. patent for HUMIRA is set to expire in December 2016.

As a newly independent company following its separation from Abbott Laboratories, AbbVie issued $14.7 billion in long-term debt in November 2012 and had $1.0 billion in commercial paper borrowings at the end of 2012 to support its operations and capital needs.