10-QPeriod: Q1 FY2021

AbbVie Inc. Quarterly Report for Q1 Ended Mar 31, 2021

Filed May 7, 2021For Securities:ABBV

Summary

AbbVie Inc. reported strong financial results for the first quarter of 2021, driven significantly by the acquisition of Allergan completed in May 2020. Net revenues surged by 51% year-over-year to $13.01 billion, propelled by substantial contributions from Allergan's portfolio and continued growth in AbbVie's key immunology and oncology drugs. Diluted earnings per share stood at $1.99, reflecting robust operational performance alongside integration-related expenses and amortization costs associated with the Allergan acquisition. The company continues to invest in its robust pipeline, with over 90 compounds in development, particularly in immunology, oncology, aesthetics, and neuroscience. Key pipeline advancements in Q1 2021 include positive Phase 3 results for Skyrizi in psoriatic arthritis and Crohn's disease, and progress for Rinvoq in ulcerative colitis. AbbVie also declared and paid dividends and continued its share repurchase program, demonstrating a commitment to returning value to shareholders.

Financial Highlights

54 data points
Beta

Revenue

$13.01B

67.6% Gross Margin

Net Income

$3.55B

27.3% Net Margin

EPS (Diluted)

$1.99

Total Assets

$150.50B

Cash & Equivalents

$9.76B

Free Cash Flow

$4.69B

Financial Statements
Beta
Revenue$13.01B
Cost of Revenue$4.21B
Gross Profit$8.80B
SG&A Expenses$2.84B
Operating Expenses$8.91B
Operating Income$4.10B
Interest Expense$632.00M
Net Income$3.55B
EPS (Basic)$2.00
EPS (Diluted)$1.99
Shares Outstanding (Basic)1.77B
Shares Outstanding (Diluted)1.77B

Key Highlights

  • 1AbbVie reported a 51% year-over-year increase in net revenues to $13.01 billion, largely due to the inclusion of Allergan's results.
  • 2Diluted Earnings Per Share (EPS) was $1.99, reflecting strong operational performance.
  • 3The company's immunology portfolio, including Humira, Skyrizi, and Rinvoq, showed solid growth, with Skyrizi and Rinvoq experiencing significant revenue increases.
  • 4Oncology products like Imbruvica and Venclexta also contributed positively to revenue growth.
  • 5AbbVie is actively managing integration costs and amortization expenses related to the Allergan acquisition, which impacted profitability metrics.
  • 6The company continues to advance its pipeline with over 90 compounds in development, with notable progress in immunology and neuroscience.
  • 7AbbVie returned capital to shareholders through $2.3 billion in dividend payments and $550 million in share repurchases during the quarter.

Frequently Asked Questions

The acquisition of Allergan, completed in May 2020, significantly boosted AbbVie's Q1 2021 results. It contributed $4.0 billion to net revenues, leading to a 51% year-over-year increase. While expanding the product portfolio and revenue base, the integration also incurred associated costs, including amortization of intangible assets and integration expenses, which impacted profitability.

Key drivers of revenue growth include the diversified portfolio from the Allergan acquisition, continued strong performance in the immunology segment (Humira, Skyrizi, Rinvoq), and growth in oncology products like Imbruvica and Venclexta. Newer immunology drugs, Skyrizi and Rinvoq, showed particularly high percentage growth rates, indicating successful market penetration.

AbbVie is actively managing integration costs related to the Allergan acquisition, which are expected to be around $2 billion through 2022, focusing on severance and other integration expenses. These costs, along with significant amortization of intangible assets acquired, are disclosed and impact the reported net earnings. The company expects to realize over $2 billion in annual cost synergies over a three-year period.

AbbVie maintains a robust pipeline with over 90 compounds in development across key therapeutic areas such as immunology, oncology, aesthetics, and neuroscience. The first quarter of 2021 saw positive developments, including successful Phase 3 trial results for Skyrizi and progress for Rinvoq. The company is also advancing new drug applications for treatments in migraine and presbyopia.