Summary
AbbVie Inc.'s 2017 Form 10-K reveals a year of significant revenue growth, primarily driven by the continued strong performance of its flagship drug, HUMIRA, which accounted for approximately 65% of total net revenues. The company reported worldwide net revenues of $28.2 billion, a 10% increase year-over-year (on a constant currency basis), bolstered by growth from IMBRUVICA and new product launches like MAVYRET. AbbVie also demonstrated robust cash flow from operations, which was utilized for pipeline investment, dividend payments, and share repurchases. Key areas of focus for investors include the company's substantial investment in research and development ($5.0 billion in 2017) across immunology, oncology, and neurology, with over 60 compounds in clinical development. Investors should also note the upcoming patent expirations for key products, particularly HUMIRA, which faces biosimilar competition, and the company's strategic efforts to manage this through pipeline innovation and market differentiation.
Financial Highlights
55 data points| Revenue | $28.22B |
| Cost of Revenue | $7.04B |
| Gross Profit | $21.18B |
| SG&A Expenses | $6.29B |
| Operating Expenses | $18.67B |
| Operating Income | $9.54B |
| Interest Expense | $1.15B |
| Net Income | $5.31B |
| EPS (Basic) | $3.31 |
| EPS (Diluted) | $3.30 |
| Shares Outstanding (Basic) | 1.60B |
| Shares Outstanding (Diluted) | 1.60B |
Key Highlights
- 1AbbVie reported $28.2 billion in worldwide net revenues for 2017, an increase of 10% on a constant currency basis, largely driven by HUMIRA and strong growth in IMBRUVICA.
- 2HUMIRA remains the dominant revenue contributor, accounting for approximately 65% of total net revenues ($18.4 billion), showing continued growth.
- 3IMBRUVICA demonstrated significant growth, with worldwide sales increasing by 40% to $2.57 billion, driven by new indications and market penetration.
- 4The company invested $5.0 billion in research and development in 2017, focusing on key therapeutic areas including immunology, oncology, and neurology, with over 60 compounds in clinical development.
- 5AbbVie returned value to shareholders through $4.1 billion in cash dividends and $1.0 billion in share repurchases during 2017.
- 6A significant risk factor is the upcoming patent expiration for HUMIRA in Europe (October 2018), with the U.S. composition of matter patent having expired in December 2016, increasing potential exposure to biosimilar competition.
- 7The company experienced a substantial impact from U.S. tax reform, including a one-time mandatory repatriation tax charge of $4.5 billion and a related tax benefit from deferred tax remeasurement.