Early Access

10-KPeriod: FY2014

AbbVie Inc. Annual Report, Year Ended Dec 31, 2014

Filed February 20, 2015For Securities:ABBV

Summary

AbbVie Inc. reported strong financial performance for the fiscal year ended December 31, 2014. The company experienced a 6% increase in worldwide net sales, reaching $20.0 billion, primarily driven by the robust performance of HUMIRA and double-digit growth in other key products. Despite facing the loss of exclusivity for its lipid franchise, AbbVie successfully navigated this challenge through strategic product launches and pipeline advancements. The company's focus on research and development continues, with significant investment in areas like immunology, virology/liver disease, and oncology, aiming to address complex and serious diseases. AbbVie is strategically positioned for future growth, with a pipeline of over 30 compounds in Phase 2 or Phase 3 development. The company also announced an increase in its quarterly cash dividend and a new $5.0 billion stock repurchase program, signaling confidence in its financial health and commitment to shareholder returns. Key near-term drivers include the launch of its interferon-free HCV treatment, VIEKIRA PAK, and expanding indications for HUMIRA. The company remains focused on operational efficiency and strategic collaborations to enhance its product portfolio and drive long-term value.

Financial Statements
Beta
Revenue$19.96B
Cost of Revenue$4.43B
Gross Profit$15.53B
SG&A Expenses$7.72B
Operating Expenses$16.55B
Operating Income$3.41B
Interest Expense$429.00M
Net Income$1.76B
EPS (Basic)$1.11
EPS (Diluted)$1.10
Shares Outstanding (Basic)1.59B
Shares Outstanding (Diluted)1.61B

Key Highlights

  • 1AbbVie's worldwide net sales grew 6% to $20.0 billion in 2014, driven by HUMIRA and other key products.
  • 2HUMIRA continues to be a significant growth driver, with global sales increasing 19% on a constant currency basis in 2014.
  • 3The company launched VIEKIRA PAK, an all-oral, short-course, interferon-free therapy for Hepatitis C, in the U.S. in December 2014.
  • 4AbbVie invested $3.3 billion in research and development in 2014, highlighting a commitment to pipeline expansion and innovation.
  • 5The company announced a new $5.0 billion stock repurchase program and increased its quarterly cash dividend, demonstrating a focus on returning capital to shareholders.
  • 6Despite generic competition impacting its lipid franchise, AbbVie demonstrated resilience through strategic growth initiatives.
  • 7AbbVie has a strong pipeline with over 30 compounds or indications in Phase 2 or Phase 3 development, targeting key therapeutic areas.

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