01—Abstract
Summary
Summary of the 10-K filed February 19, 2016. Cited figures are marked; the original filing is the authoritative source.
AbbVie Inc.'s 2015 10-K report, filed on February 18, 2016, highlights a year of significant growth and strategic expansion.
The company reported a 15% increase in worldwide net revenues, reaching $22.9 billiona, driven primarily by the strong performance of its flagship drug HUMIRA, robust international sales, and the acquisition of Pharmacyclics, which brought IMBRUVICA into its portfolio. AbbVie also saw growth from its HCV treatments and other key products. The company's financial health was further bolstered by an improvement in gross margin to 80% and substantial cash flow from operations, enabling significant returns to shareholders through dividends and share repurchases.
Strategically, AbbVie completed the substantial $20.8 billionb acquisition of Pharmacyclics, significantly strengthening its oncology presence and pipeline, particularly with IMBRUVICA. The company also continued to invest heavily in research and development, with over 50 compounds or indications in clinical development.
Key regulatory submissions and approvals occurred for HUMIRA in new indications and for pipeline assets like venetoclax, underscoring a commitment to innovation and expanding therapeutic offerings. Looking ahead, AbbVie aims to continue this growth trajectory by expanding its key brands, advancing its pipeline through R&D and strategic partnerships, and enhancing shareholder value.
02—Key points
Key Highlights
- AbbVie reported a 15% increase in worldwide net revenues to $22.9 billion in 2015, primarily driven by HUMIRA and the acquisition of Pharmacyclics.
- The acquisition of Pharmacyclics for $20.8 billion was completed in May 2015, significantly bolstering AbbVie's oncology portfolio with IMBRUVICA.
- HUMIRA sales grew 12% globally (19% constant currency), accounting for approximately 61% of total net revenues in 2015, demonstrating its continued importance.
- Research and development expenses increased by 30% to $4.3 billion, reflecting investment in a pipeline of over 50 compounds in clinical development.
- The company generated strong operating cash flow of $7.5 billion, supporting significant capital allocation towards dividends ($3.3 billion) and share repurchases ($2.8 billion).
- AbbVie continued to expand HUMIRA's indications, receiving approvals for hidradenitis suppurativa and pediatric plaque psoriasis, and filing for uveitis.
- IMBRUVICA, acquired with Pharmacyclics, is expected to be a significant contributor to revenue growth, with AbbVie filing for expanded indications and receiving priority review status.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2015, AbbVie Inc. kept $0.22.
- Revenue$22.86B100.0%
- Cost of revenue−$4.50B19.7%
- Gross profit$18.36B80.3%
- Operating costs−$10.82B47.3%
- Operating income$7.54B33.0%
- Interest, other & tax−$2.42B10.6%
- Net income$5.12B22.4%
Where FY2015 revenue went
$22.86B- SG&A: $6.39B, 28% of revenue
- Net income: $5.12B, 22% of revenue
- Cost of revenue: $4.50B, 20% of revenue
- Other operating costs: $4.43B, 19% of revenue
- Interest, other & tax: $2.42B, 11% of revenue
Kept 22% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2015filed February 19, 2016Financial Statements
FY2015 against FY2014
| Line item | FY2015FY2014 | Change |
|---|---|---|
| Revenue | $22.86B$19.96B | +14.5% |
| Cost of Revenue | $4.50B$4.43B | +1.7% |
| Gross Profit | $18.36B$15.53B | +18.2% |
| SG&A Expenses | $6.39B$7.72B | −17.3% |
| Operating Expenses | $15.32B$16.55B | −7.4% |
| Operating Income | $7.54B$3.41B | +121.0% |
| Interest Expense | $719.00M$429.00M | +67.6% |
| Net Income | $5.12B$1.76B | +190.0% |
| EPS (Basic) | $3.15$1.11 | +183.8% |
| EPS (Diluted) | $3.13$1.10 | +184.5% |
| Shares Outstanding (Basic) | 1.63B1.59B | +1.9% |
| Shares Outstanding (Diluted) | 1.64B1.61B | +1.7% |
05—Questions
Frequently Asked Questions
What was AbbVie's financial performance in 2015?
In 2015, AbbVie experienced strong financial growth, with worldwide net revenues increasing by 15% to $22.9 billion. Net earnings were $5.14 billion, and diluted earnings per share were $3.13. The company generated $7.5 billion in cash flow from operations.
What were the key strategic moves made by AbbVie in 2015?
The most significant strategic move was the completion of the $20.8 billion acquisition of Pharmacyclics, Inc., which significantly expanded AbbVie's presence in oncology with the addition of IMBRUVICA. AbbVie also continued to invest heavily in its R&D pipeline and expanded indications for its key product, HUMIRA.
How reliant is AbbVie on HUMIRA?
HUMIRA is AbbVie's largest product, accounting for approximately 61% of its total net revenues in 2015. The company continues to invest in expanding its indications and maintaining its market leadership, while also acknowledging the upcoming patent expiration in December 2016.
What is AbbVie's outlook for 2016?
AbbVie anticipates continued revenue growth driven by HUMIRA, IMBRUVICA, and its HCV treatments, along with contributions from newly approved pipeline products. The company plans to continue investing in its R&D pipeline, focus on strategic licensing and acquisitions, and return cash to shareholders through dividends and share repurchases.
06—Continue