Summary
AbbVie Inc. reported net revenues of $8.255 billion for the three months ended June 30, 2019, a slight decrease of 0.3% from the prior year, or a 1.3% increase on a constant currency basis. For the six months ended June 30, 2019, net revenues were $16.083 billion, a 0.8% decrease from the prior year, or a 0.9% increase on a constant currency basis. The company announced a significant development with the proposed acquisition of Allergan plc for approximately $63 billion, expected to close in early 2020, which will expand AbbVie's therapeutic areas and market reach. Despite a slight decline in overall revenue, key growth drivers like IMBRUVICA and VENCLEXTA showed strong performance, increasing by 29% and over 100% respectively for the quarter. While international HUMIRA sales experienced a significant decline due to biosimilar competition, U.S. HUMIRA sales demonstrated continued strength with an increase of 7.7%. The company also saw the approval and initial sales of SKYRIZI, a new immunology drug. Diluted earnings per share for the quarter were $0.49, a substantial decrease from $1.26 in the prior year, largely impacted by significant non-GAAP adjustments, including a substantial increase in the fair value of contingent consideration liabilities. The company continues to focus on pipeline development and returning cash to shareholders.
Financial Highlights
53 data points| Revenue | $8.26B |
| Cost of Revenue | $1.82B |
| Gross Profit | $6.44B |
| SG&A Expenses | $1.65B |
| Operating Expenses | $4.86B |
| Operating Income | $3.40B |
| Interest Expense | $358.00M |
| Net Income | $741.00M |
| EPS (Basic) | $0.49 |
| EPS (Diluted) | $0.49 |
| Shares Outstanding (Basic) | 1.48B |
| Shares Outstanding (Diluted) | 1.48B |
Key Highlights
- 1AbbVie announced a proposed acquisition of Allergan plc for approximately $63 billion, a significant move to diversify its business and expand into new therapeutic areas such as medical aesthetics and neuroscience.
- 2Net revenues for the second quarter of 2019 were $8.255 billion, down 0.3% year-over-year (up 1.3% on a constant currency basis), impacted by international HUMIRA biosimilar competition.
- 3Key growth products like IMBRUVICA and VENCLEXTA showed strong performance, with IMBRUVICA revenues up 29.3% and VENCLEXTA revenues up over 100% for the quarter.
- 4U.S. HUMIRA sales remained resilient, increasing by 7.7% year-over-year for the quarter, while international HUMIRA sales declined significantly due to biosimilar competition.
- 5SKYRIZI, a new immunology drug, received regulatory approvals in April 2019 and generated $48 million in revenue in its first quarter on the market.
- 6Diluted earnings per share decreased significantly to $0.49 from $1.26 in the prior year, largely due to a substantial increase in the fair value of contingent consideration liabilities ($2.3 billion in the quarter).
- 7AbbVie continued to return capital to shareholders, declaring a quarterly cash dividend of $1.07 per share and repurchasing shares under its stock repurchase program.