01—Abstract
Summary
Summary of the 10-K filed February 17, 2023. Cited figures are marked; the original filing is the authoritative source.
AbbVie Inc. reported robust net revenues of $58.1 billiona for 2022, a 3% increase over the prior year, driven by strong performance in its immunology, neuroscience, and aesthetics portfolios.
The company's strategic focus on maximizing the benefits of the Allergan acquisition, advancing its pipeline, and returning value to shareholders is evident in its results. Key growth drivers include Skyrizi and Rinvoq, which experienced significant revenue increases due to expanded indications and market share gains. However, a significant overhang for investors is the impending loss of exclusivity for Humira in the United States, which accounted for approximately 37%b of total net revenues in 2022.
AbbVie anticipates a substantial decline in Humira sales due to biosimilar competition starting in 2023. The company is actively managing this transition by investing in its next-generation immunology products, Skyrizi and Rinvoq, to offset the impact. Despite this, AbbVie maintains a strong financial position with substantial operating cash flows and a commitment to shareholder returns through dividends and share repurchases.
02—Key points
Key Highlights
- AbbVie reported 2022 net revenues of $58.1 billion, a 3.3% increase year-over-year, demonstrating continued growth driven by its diversified portfolio.
- Skyrizi and Rinvoq showed impressive growth, with net revenues increasing by 75.7% and 52.8% respectively, highlighting their increasing importance as growth drivers.
- Humira, while still a major revenue contributor, saw international sales decline by 15% due to biosimilar competition, and faces U.S. biosimilar entry in 2023, representing a significant future revenue challenge.
- The company generated strong operating cash flows of $24.9 billion, supporting its investments in research and development and shareholder returns.
- AbbVie is strategically investing in its pipeline, with over 80 compounds, devices, or indications in development, focusing on immunology, oncology, aesthetics, and neuroscience.
- Diluted earnings per share were $6.63, but this figure included significant after-tax costs related to amortization of intangibles, litigation, and acquisition/integration expenses.
- The company announced an increase in its quarterly cash dividend to $1.48 per share, demonstrating a commitment to returning capital to shareholders.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2022, AbbVie Inc. kept $0.20.
- Revenue$58.05B100.0%
- Cost of revenue−$17.41B30.0%
- Gross profit$40.64B70.0%
- Operating costs−$22.52B38.8%
- Operating income$18.12B31.2%
- Interest, other & tax−$6.28B10.8%
- Net income$11.84B20.4%
Where FY2022 revenue went
$58.05B- Cost of revenue: $17.41B, 30% of revenue
- SG&A: $15.26B, 26% of revenue
- Net income: $11.84B, 20% of revenue
- Other operating costs: $7.26B, 13% of revenue
- Interest, other & tax: $6.28B, 11% of revenue
Kept 20% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2022filed February 17, 2023Financial Statements
FY2022 against FY2021
| Line item | FY2022FY2021 | Change |
|---|---|---|
| Revenue | $58.05B$56.20B | +3.3% |
| Cost of Revenue | $17.41B$17.45B | −0.2% |
| Gross Profit | $40.64B$38.75B | +4.9% |
| SG&A Expenses | $15.26B$12.35B | +23.6% |
| Operating Expenses | $39.94B$38.27B | +4.3% |
| Operating Income | $18.12B$17.92B | +1.1% |
| Interest Expense | $2.23B$2.42B | −8.0% |
| Net Income | $11.84B$11.54B | +2.5% |
| EPS (Basic) | $6.65$6.48 | +2.6% |
| EPS (Diluted) | $6.63$6.45 | +2.8% |
| Shares Outstanding (Basic) | 1.77B1.77B | +0.1% |
| Shares Outstanding (Diluted) | 1.78B1.78B | +0.1% |
05—Questions
Frequently Asked Questions
What is the expected impact of Humira biosimilar competition in the U.S. on AbbVie's future revenues?
AbbVie anticipates a significant decline in Humira net revenues in the United States following the loss of exclusivity in January 2023 due to direct biosimilar competition. The company is actively pursuing strategies to manage this erosion, but it represents a major headwind for future revenue growth.
Which products are driving AbbVie's growth, and what is the outlook for them?
AbbVie's key growth drivers are Skyrizi and Rinvoq, particularly in the immunology space. Both products demonstrated substantial revenue increases in 2022 due to expanding indications and strong market uptake. The company expects continued growth from these assets as they gain further market share and receive additional regulatory approvals.
How is AbbVie managing its R&D investment and pipeline development?
AbbVie continues to invest heavily in research and development, with over 80 compounds, devices, or indications in development. The company focuses on key therapeutic areas like immunology, oncology, aesthetics, and neuroscience. R&D expenses represented 11% of net revenues in 2022, reflecting a strategic commitment to innovation and pipeline advancement.
What is AbbVie's approach to returning capital to shareholders?
AbbVie demonstrates a commitment to shareholder returns through regular cash dividend payments and a stock repurchase program. The company recently increased its quarterly cash dividend and has a significant remaining authorization for share repurchases, indicating confidence in its financial health and future cash generation.
06—Continue