Early Access

10-KPeriod: FY2022

AbbVie Inc. Annual Report, Year Ended Dec 31, 2022

Filed February 17, 2023For Securities:ABBV

Summary

AbbVie Inc. reported robust net revenues of $58.1 billion 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% 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.

Financial Statements
Beta
Revenue$58.05B
Cost of Revenue$17.41B
Gross Profit$40.64B
SG&A Expenses$15.26B
Operating Expenses$39.94B
Operating Income$18.12B
Interest Expense$2.23B
Net Income$11.84B
EPS (Basic)$6.65
EPS (Diluted)$6.63
Shares Outstanding (Basic)1.77B
Shares Outstanding (Diluted)1.78B

Key Highlights

  • 1AbbVie reported 2022 net revenues of $58.1 billion, a 3.3% increase year-over-year, demonstrating continued growth driven by its diversified portfolio.
  • 2Skyrizi and Rinvoq showed impressive growth, with net revenues increasing by 75.7% and 52.8% respectively, highlighting their increasing importance as growth drivers.
  • 3Humira, 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.
  • 4The company generated strong operating cash flows of $24.9 billion, supporting its investments in research and development and shareholder returns.
  • 5AbbVie is strategically investing in its pipeline, with over 80 compounds, devices, or indications in development, focusing on immunology, oncology, aesthetics, and neuroscience.
  • 6Diluted earnings per share were $6.63, but this figure included significant after-tax costs related to amortization of intangibles, litigation, and acquisition/integration expenses.
  • 7The company announced an increase in its quarterly cash dividend to $1.48 per share, demonstrating a commitment to returning capital to shareholders.

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