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10-QPeriod: Q1 FY2013

AbbVie Inc. Quarterly Report for Q1 Ended Mar 31, 2013

Filed May 8, 2013For Securities:ABBV

Summary

AbbVie Inc. (ABBV) has reported its first quarterly report as an independent entity following its spin-off from Abbott Laboratories on January 1, 2013. For the quarter ended March 31, 2013, AbbVie reported net sales of $4.33 billion, a 4% increase compared to the same period last year. Net earnings were $968 million, or $0.60 per diluted share, up from $883 million, or $0.56 per diluted share, in the prior year's first quarter. The company's performance was largely driven by strong sales of its flagship product, Humira, which saw a 16% increase to $2.24 billion. Other products also contributed to growth, although some, like TriCor/TRILIPIX, experienced declines due to generic competition. AbbVie highlighted its ongoing commitment to research and development, with a focus on advancing its pipeline, particularly in areas like immunology, oncology, and neuroscience. The company also initiated a $1.5 billion share repurchase program and declared a quarterly dividend of $0.40 per share.

Financial Statements
Beta
Revenue$4.33B
Cost of Revenue$1.15B
Gross Profit$3.18B
SG&A Expenses$1.24B
Operating Expenses$3.02B
Operating Income$1.30B
Interest Expense$72.00M
Net Income$968.00M
EPS (Basic)$0.61
EPS (Diluted)$0.60
Shares Outstanding (Basic)1.59B
Shares Outstanding (Diluted)1.60B

Key Highlights

  • 1Net sales increased by 4% to $4.33 billion for the first quarter of 2013, driven by 5% growth on a constant currency basis.
  • 2Net earnings rose to $968 million, or $0.60 per diluted share, compared to $883 million, or $0.56 per diluted share, in the prior year's first quarter.
  • 3Humira sales showed robust growth of 16% (17% constant currency) to $2.24 billion, representing a significant portion of total revenue.
  • 4The company incurred $34 million in separation-related expenses during the quarter related to its independence from Abbott Laboratories.
  • 5AbbVie initiated a $1.5 billion common stock repurchase program and declared a quarterly cash dividend of $0.40 per share.
  • 6Research and Development (R&D) expenses remained a key focus, with ongoing investments to advance its pipeline, though R&D spending saw a slight decrease year-over-year excluding certain prior year charges.
  • 7The company has a strong cash position, with cash and equivalents of $6.98 billion at the end of the quarter, though cash from operations decreased compared to the prior year.

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