01—Abstract
Summary
Summary of the 10-K/A filed April 5, 2013. Cited figures are marked; the original filing is the authoritative source.
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.
02—Key points
Key Highlights
- AbbVie completed its separation from Abbott Laboratories on January 1, 2013, establishing itself as an independent global biopharmaceutical company.
- HUMIRA was AbbVie's leading product, generating approximately $9.3 billion in worldwide sales in 2012, representing about 50% of total sales.
- The 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.
- Key therapeutic areas for R&D include immunology, oncology, neuroscience, and virology.
- AbbVie is subject to patent expirations, with the U.S. composition of matter patent for HUMIRA expected to expire in December 2016.
- The company issued $14.7 billion in long-term debt in November 2012.
- AbbVie generated strong operating cash flows of $6.3 billion in 2012.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2012, AbbVie Inc. kept $0.29.
- Revenue$18.38B100.0%
- Cost of revenue−$4.51B24.5%
- Gross profit$13.87B75.5%
- Operating costs−$8.05B43.8%
- Operating income$5.82B31.6%
- Interest, other & tax−$542.0M2.9%
- Net income$5.28B28.7%
Where FY2012 revenue went
$18.38B- Net income: $5.28B, 29% of revenue
- SG&A: $4.99B, 27% of revenue
- Cost of revenue: $4.51B, 25% of revenue
- Other operating costs: $3.07B, 17% of revenue
- Interest, other & tax: $542.0M, 2.9% of revenue
Kept 29% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-K/AFY2012filed April 5, 2013Financial Statements
FY2012 against FY2011
| Line item | FY2012FY2011 | Change |
|---|---|---|
| Revenue | $18.38B$17.44B | +5.4% |
| Cost of Revenue | $4.51B$4.64B | −2.8% |
| Gross Profit | $13.87B$12.80B | +8.3% |
| SG&A Expenses | $4.99B$5.89B | −15.4% |
| Operating Expenses | $12.56B$13.82B | −9.1% |
| Operating Income | $5.82B$3.62B | +60.7% |
| Interest Expense | $104.00M— | — |
| Net Income | $5.28B$3.43B | +53.7% |
| EPS (Basic) | $3.35$2.18 | +53.7% |
| EPS (Diluted) | $3.35$2.18 | +53.7% |
| Shares Outstanding (Basic) | 1.58B1.58B | 0.0% |
| Shares Outstanding (Diluted) | 1.58B1.58B | 0.0% |
05—Questions
Frequently Asked Questions
What is the primary purpose of this 10-K/A filing?
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.
What is AbbVie's main product and its contribution to revenue?
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.
What are AbbVie's key growth strategies and future focus areas?
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.
What are the main risks AbbVie faces concerning its products and market exclusivity?
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.
How did AbbVie finance its operations as a newly independent company?
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.
06—Continue