01—Abstract
Summary
Summary of the 10-K filed February 20, 2024. Cited figures are marked; the original filing is the authoritative source.
AbbVie Inc. reported total net revenues of $54.3 billiona for the fiscal year ended December 31, 2023, a decrease of 6.4% on a reported basis compared to the prior year.
This decline was primarily driven by the impact of biosimilar competition for Humira, which accounted for approximately 27%b of AbbVie's total net revenues in 2023 and faced significant erosion in the US market following the loss of exclusivity in January 2023. Despite the Humira headwinds, AbbVie demonstrated strong performance in its growth products, particularly Skyrizi and Rinvoq, which saw substantial revenue increases of 50.3% and 57.4%, respectively. The company's oncology, aesthetics, and neuroscience portfolios also showed positive growth.
AbbVie is strategically investing in its pipeline, evidenced by its approximately 90 compounds in development, and has recently completed the acquisition of ImmunoGen and announced plans to acquire Cerevel Therapeutics, signaling a continued focus on diversification and expansion into new therapeutic areas. The company also continues to return value to shareholders through dividends and share repurchases, with a quarterly dividend increase announced in October 2023.
02—Key points
Key Highlights
- AbbVie's total net revenues decreased by 6.4% to $54.3 billion in 2023, primarily due to the loss of Humira exclusivity and subsequent biosimilar competition, which impacted US sales significantly.
- Skyrizi and Rinvoq, key growth drivers for AbbVie, experienced robust revenue increases of 50.3% and 57.4% respectively, demonstrating strong market uptake and indication expansion.
- The oncology portfolio, including Imbruvica and Venclexta, saw a revenue decline of 21.3% and a growth of 13.9%, respectively, with Imbruvica facing demand and market share challenges.
- Aesthetics and Neuroscience segments showed positive growth, with Botox Cosmetic up 2.6% and Vraylar revenue increasing by 35.4%, driven by market growth and new indications.
- The company is actively expanding its pipeline and business through strategic acquisitions, notably the completion of the ImmunoGen acquisition and the proposed acquisition of Cerevel Therapeutics.
- AbbVie's research and development expenses increased by 18% to $7.7 billion, reflecting continued investment in its pipeline of approximately 90 compounds in development.
- The company returned significant capital to shareholders through dividends ($10.5 billion) and share repurchases ($1.6 billion) in 2023, while also managing its debt profile.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2023, AbbVie Inc. kept $0.09.
- Revenue$54.32B100.0%
- Cost of revenue−$20.41B37.6%
- Gross profit$33.90B62.4%
- Operating costs−$21.15B38.9%
- Operating income$12.76B23.5%
- Interest, other & tax−$7.89B14.5%
- Net income$4.86B9.0%
Where FY2023 revenue went
$54.32B- Cost of revenue: $20.41B, 38% of revenue
- SG&A: $12.87B, 24% of revenue
- Other operating costs: $8.27B, 15% of revenue
- Interest, other & tax: $7.89B, 15% of revenue
- Net income: $4.86B, 9.0% of revenue
Kept 9.0% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2023filed February 20, 2024Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $54.32B$58.05B | −6.4% |
| Cost of Revenue | $20.41B$17.41B | +17.2% |
| Gross Profit | $33.90B$40.64B | −16.6% |
| SG&A Expenses | $12.87B$15.26B | −15.6% |
| Operating Expenses | $41.56B$39.94B | +4.1% |
| Operating Income | $12.76B$18.12B | −29.6% |
| Interest Expense | $2.22B$2.23B | −0.3% |
| Net Income | $4.86B$11.84B | −58.9% |
| EPS (Basic) | $2.73$6.65 | −58.9% |
| EPS (Diluted) | $2.72$6.63 | −59.0% |
| Shares Outstanding (Basic) | 1.77B1.77B | −0.2% |
| Shares Outstanding (Diluted) | 1.77B1.78B | −0.3% |
05—Questions
Frequently Asked Questions
What was AbbVie's overall financial performance in 2023?
AbbVie reported total net revenues of $54.3 billion for 2023, a decrease of 6.4% compared to 2022, primarily due to the impact of Humira biosimilar competition. Diluted earnings per share were $2.72.
How did Humira perform in 2023, and what is its future outlook?
Humira sales decreased by 32.2% globally in 2023, with a 34.7% decrease in the United States following the loss of exclusivity in January 2023. AbbVie anticipates continued revenue decline for Humira due to biosimilar competition.
What are AbbVie's key growth drivers and strategic priorities?
AbbVie's key growth drivers are Skyrizi and Rinvoq, which showed strong revenue growth in 2023. Strategic priorities include maximizing diversified revenue, driving growth through new product launches and indication expansions, investing in its pipeline across immunology, oncology, aesthetics, and neuroscience, and returning cash to shareholders.
What significant M&A activity did AbbVie undertake or announce in 2023?
AbbVie completed the acquisition of ImmunoGen for approximately $10.1 billion in February 2024 and announced its definitive agreement to acquire Cerevel Therapeutics for approximately $8.7 billion in December 2023, signaling continued investment in oncology and neuroscience.
06—Continue