8-KEarnings & ResultsExhibits & Filings

AbbVie Inc. 8-K Report, Financial Results (Jan 6, 2023)

Filed January 6, 2023For Securities:ABBV

Summary

AbbVie Inc. (ABBV) has filed a Form 8-K to provide preliminary guidance for its fourth quarter and full-year 2022 financial results. The company anticipates reporting acquired In-Process Research & Development (IPR&D) and milestone expenses of $243 million pre-tax, which is expected to negatively impact both GAAP and adjusted diluted earnings per share by $0.14. This expense was not originally forecasted in the company's prior 2022 guidance. Despite this one-time expense, AbbVie has updated its full-year 2022 adjusted diluted earnings per share guidance to a range of $13.70 - $13.74, and its fourth quarter 2022 adjusted diluted earnings per share guidance to $3.51 - $3.55, reflecting the inclusion of these expenses. Investors should note that these are preliminary estimates and the final results are subject to financial statement closing procedures.

Key Highlights

  • 1AbbVie expects acquired IPR&D and milestone expenses of $243 million pre-tax in Q4 2022.
  • 2These expenses are estimated to reduce both GAAP and adjusted diluted EPS by $0.14 for Q4 2022.
  • 3AbbVie has updated its full-year 2022 adjusted diluted EPS guidance to $13.70 - $13.74.
  • 4AbbVie has updated its Q4 2022 adjusted diluted EPS guidance to $3.51 - $3.55.
  • 5These expenses were not part of previous guidance and reflect costs associated with collaborations, licensing, and asset acquisitions.
  • 6The reported results are preliminary and subject to final financial statement closing procedures.
  • 7Exhibit 99.1 contains detailed guidance, including the impact of these expenses.

Frequently Asked Questions

The primary reason is an anticipated $243 million in acquired IPR&D (In-Process Research & Development) and milestone expenses on a pre-tax basis. These expenses are related to collaborations, licensing agreements, and other asset acquisitions and were not included in prior earnings guidance.

AbbVie's full-year 2022 adjusted diluted earnings per share guidance has been updated to a range of $13.70 - $13.74, which now includes the impact of this Q4 expense. The Q4 2022 adjusted diluted earnings per share guidance is now between $3.51 - $3.55.

No, the results for the quarter ended December 31, 2022, have not been finalized and are subject to the company's financial statement closing procedures. There is a possibility that the final results may differ from these preliminary estimates.

This expense relates to costs incurred when AbbVie enters into agreements for research and development projects or acquires assets. These can include upfront payments, option fees, or payments triggered by achieving certain development milestones in collaborations or licensing deals.