10-QPeriod: Q2 FY2017

AbbVie Inc. Quarterly Report for Q2 Ended Jun 30, 2017

Filed August 7, 2017For Securities:ABBV

Summary

AbbVie Inc. reported strong financial results for the second quarter and first half of 2017, demonstrating robust revenue growth and profitability. Net revenues increased by 7.6% (8.5% on a constant currency basis) in the quarter and 8.6% (9.3% on a constant currency basis) year-to-date, driven by the sustained performance of key products like HUMIRA and IMBRUVICA. Net earnings also saw a significant increase, with diluted EPS rising to $1.19 for the quarter and $2.25 year-to-date. The company's strategic investments in research and development continue to yield promising results, with a robust pipeline focused on immunology, oncology, virology, and neurology. AbbVie also demonstrated a commitment to returning capital to shareholders, evidenced by a 9.5% increase in its quarterly dividend and ongoing share repurchase programs. The company maintains a strong financial position with solid operating cash flows, enabling continued investment in innovation and shareholder returns.

Financial Highlights

53 data points
Beta

Revenue

$6.94B

78.0% Gross Margin

Net Income

$1.92B

27.6% Net Margin

EPS (Diluted)

$1.19

Total Assets

$66.99B

Cash & Equivalents

$6.09B

Free Cash Flow

$1.88B

Financial Statements
Beta
Revenue$6.94B
Cost of Revenue$1.53B
Gross Profit$5.42B
SG&A Expenses$1.51B
Operating Expenses$4.28B
Operating Income$2.66B
Interest Expense$284.00M
Net Income$1.92B
EPS (Basic)$1.20
EPS (Diluted)$1.19
Shares Outstanding (Basic)1.59B
Shares Outstanding (Diluted)1.60B

Key Highlights

  • 1Net revenues grew by 7.6% to $6.94 billion for the three months ended June 30, 2017, and by 8.6% to $13.48 billion for the six months ended June 30, 2017, with constant currency growth rates of 8.5% and 9.3%, respectively.
  • 2Diluted earnings per share (EPS) were $1.19 for the three months ended June 30, 2017, and $2.25 for the six months ended June 30, 2017.
  • 3HUMIRA sales increased by 13.7% (14.9% in constant currency) to $4.72 billion for the quarter and by 14.3% (15.3% in constant currency) to $8.83 billion year-to-date.
  • 4IMBRUVICA sales showed strong growth, increasing by 42.6% (42.6% in constant currency) to $626 million for the quarter and 43.6% (43.6% in constant currency) to $1.18 billion year-to-date.
  • 5Research and Development (R&D) expenses increased by 8.7% to $1.22 billion for the quarter and by 13.9% to $2.36 billion year-to-date, reflecting continued investment in the pipeline.
  • 6The company generated $4.1 billion in cash flow from operating activities for the six months ended June 30, 2017.
  • 7AbbVie declared a quarterly cash dividend of $0.64 per share, a 9.5% increase from the prior year's quarterly dividend.

Frequently Asked Questions

AbbVie's revenue growth was primarily driven by the strong performance of its key products, particularly HUMIRA and IMBRUVICA. HUMIRA saw significant increases in both the US and international markets, while IMBRUVICA demonstrated substantial growth due to its increasing use as a first-line treatment for certain blood cancers and favorable pricing.

AbbVie increased its R&D expenses, with a 9% rise for the quarter and a 14% rise year-to-date. This increase reflects the company's continued investment in its robust pipeline of mid- and late-stage assets across key therapeutic areas like immunology, oncology, virology, and neurology, as well as expenses related to recent acquisitions like Stemcentrx and BI compounds.

AbbVie continues to return capital to shareholders through a combination of increasing cash dividends and share repurchases. The company declared a quarterly cash dividend of $0.64 per share, representing a notable increase. Additionally, AbbVie's board authorized a $5.0 billion increase to its existing stock repurchase program, and the company actively repurchased shares during the period.

This filing discusses the acquisition of Stemcentrx in June 2016 and the acquisition of rights to risankizumab (BI 655066) and BI 655064 from Boehringer Ingelheim in April 2016. It also mentions ongoing strategic licensing and acquisition activities aimed at augmenting the pipeline. There are no divestitures highlighted in this specific quarterly report.