Summary
AbbVie Inc. reported its second quarter and first half results for 2013, marking its first period as an independent company following its separation from Abbott Laboratories on January 1, 2013. For the three months ended June 30, 2013, AbbVie reported net sales of $4,692 million, a 4% increase compared to the same period in 2012. Net earnings for the quarter were $1,068 million, or $0.66 per diluted share, a decrease from $1,267 million ($0.80 per diluted share) in the prior year. This decline in earnings is partly attributable to increased operating costs, including research and development and selling, general, and administrative expenses, as well as separation-related costs. The six-month period showed a similar trend with net sales of $9,021 million, up 4% year-over-year, while net earnings were $2,036 million, or $1.27 per diluted share, down from $2,150 million ($1.36 per diluted share) in the comparable 2012 period. The company highlighted the continued strength of its flagship product, Humira, which drove significant sales growth. Despite the year-over-year earnings dip, the company is focused on pipeline development and expanding indications for its key products, while managing increased operational expenses associated with its new independent status.
Financial Highlights
50 data points| Revenue | $4.69B |
| Cost of Revenue | $1.05B |
| Gross Profit | $3.64B |
| SG&A Expenses | $1.41B |
| Operating Expenses | $3.24B |
| Operating Income | $1.45B |
| Interest Expense | $79.00M |
| Net Income | $1.07B |
| EPS (Basic) | $0.67 |
| EPS (Diluted) | $0.66 |
| Shares Outstanding (Basic) | 1.59B |
| Shares Outstanding (Diluted) | 1.61B |
Key Highlights
- 1AbbVie Inc. completed its first quarter as an independent company following the spin-off from Abbott Laboratories on January 1, 2013.
- 2Net sales for the second quarter of 2013 increased by 4% to $4.69 billion compared to the prior year period, driven by strong performance of Humira.
- 3Diluted earnings per share decreased to $0.66 in Q2 2013 from $0.80 in Q2 2012, reflecting increased operating expenses and separation-related costs.
- 4Humira continued to be a significant growth driver, with global sales up 12% to $2.61 billion in Q2 2013.
- 5Research and Development (R&D) expenses increased by 10% to $709 million in Q2 2013, reflecting investment in pipeline development and new indications.
- 6Selling, General, and Administrative (SG&A) expenses rose by 13% to $1.41 billion in Q2 2013, attributed to support for growth brands and incremental costs of independence.
- 7The company declared and paid cash dividends totaling $1.20 per share in the first six months of 2013 and initiated a $1.5 billion share repurchase program.