Summary
AbbVie Inc. reported first-quarter 2023 results with net revenues of $12.2 billion, a decrease of 9.7% on a reported basis and 8.3% on a constant currency basis compared to the prior year. This decline was primarily driven by the impact of direct biosimilar competition for Humira following its loss of exclusivity in the U.S. at the end of January 2023, leading to a 25.2% decrease in Humira sales globally. Despite the revenue decline, AbbVie demonstrated growth in key products such as Skyrizi (up 44.7%) and Rinvoq (up 47.5%), indicating successful expansion of its newer growth drivers. The company also reported significant R&D expenses, including a $630 million impairment charge related to an intangible asset, and a substantial increase in other expenses due to a $1.9 billion change in the fair value of contingent consideration liabilities, largely favorable. Diluted earnings per share significantly decreased to $0.13 from $2.51 in the prior year, impacted by these non-recurring charges and the amortization of intangibles.
Financial Highlights
56 data points| Revenue | $12.22B |
| Cost of Revenue | $3.99B |
| Gross Profit | $8.24B |
| SG&A Expenses | $3.04B |
| Operating Expenses | $9.46B |
| Operating Income | $2.77B |
| Interest Expense | $553.00M |
| Net Income | $239.00M |
| EPS (Basic) | $0.13 |
| EPS (Diluted) | $0.13 |
| Shares Outstanding (Basic) | 1.77B |
| Shares Outstanding (Diluted) | 1.78B |
Key Highlights
- 1Net revenues declined by 9.7% to $12.2 billion, primarily due to Humira's loss of exclusivity in the U.S. and subsequent biosimilar competition.
- 2Growth in immunology products Skyrizi and Rinvoq was strong, increasing 44.7% and 47.5% respectively, signaling their increasing contribution to revenue.
- 3Diluted EPS dropped significantly to $0.13 from $2.51 in Q1 2022, heavily impacted by a $1.8 billion unfavorable change in fair value of contingent consideration, a $630 million intangible asset impairment, and substantial amortization expenses.
- 4Operating earnings decreased by 41.2% to $2.8 billion, reflecting the lower revenues and increased R&D expenses.
- 5AbbVie continued robust investment in R&D, with expenses increasing 53% to $2.3 billion, including a significant intangible asset impairment charge.
- 6The company maintained a strong cash flow from operations, generating $4.2 billion, while also returning cash to shareholders through $2.7 billion in dividends and $1.6 billion in share repurchases.