8-KEarnings & ResultsExhibits & Filings

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

Filed July 6, 2023For Securities:ABBV

Summary

AbbVie Inc. (ABBV) has filed a Current Report (8-K) on July 6, 2023, to provide an update on its expected financial performance for the second quarter of 2023. The company anticipates reporting acquired In-Process Research and Development (IPR&D) and milestones expenses of $280 million on a pre-tax basis. This expense is projected to have an unfavorable impact of $0.15 per diluted share on both GAAP and adjusted non-GAAP earnings per share for the quarter. While these figures are preliminary and subject to finalization, they provide investors with an early look at a significant expense that was not originally factored into AbbVie's full-year guidance from April 2023. The company has updated its full-year 2023 adjusted diluted earnings per share guidance to a range of $10.57 - $10.97, reflecting this new expense. The second quarter 2023 adjusted diluted earnings per share guidance has also been revised to $2.75 - $2.85, incorporating this charge. Investors should note that this information is furnished and not deemed 'Filed' for the purpose of Section 18 of the Exchange Act.

Key Highlights

  • 1AbbVie anticipates acquired IPR&D and milestones expenses of $280 million (pre-tax) in Q2 2023.
  • 2This expense is expected to reduce both GAAP and adjusted non-GAAP diluted EPS by approximately $0.15 for Q2 2023.
  • 3The company has updated its full-year 2023 adjusted diluted EPS guidance to a range of $10.57 - $10.97.
  • 4Q2 2023 adjusted diluted EPS guidance is now projected to be between $2.75 - $2.85, including the new expense.
  • 5The disclosed expense relates to IPR&D and milestones, typically associated with collaborations, licensing, and acquisitions.
  • 6AbbVie does not typically forecast these types of expenses due to their uncertain timing.
  • 7The information provided is furnished, not filed, and not subject to Section 18 liabilities of the Exchange Act.

Frequently Asked Questions

AbbVie expects this expense to negatively impact both GAAP and adjusted non-GAAP diluted earnings per share by approximately $0.15 for the second quarter of 2023. This charge has also been incorporated into the updated full-year and second-quarter earnings per share guidance.

The company is providing this update because the expense has been incurred during the second quarter. While AbbVie generally does not forecast acquired IPR&D and milestones expenses due to their unpredictable nature, it is informing investors of this material event once it has occurred and is being recognized.

AbbVie has revised its full-year 2023 adjusted diluted EPS guidance to a range of $10.57 - $10.97, which now includes this $280 million expense. The second quarter 2023 adjusted diluted EPS guidance has also been adjusted to $2.75 - $2.85 to account for this charge.

No, the information in this Current Report on Form 8-K, including the guidance, is 'furnished' and not 'Filed' for the purpose of Section 18 of the Securities Exchange Act of 1934. This means it does not subject AbbVie to the liabilities associated with Section 18, nor is it automatically incorporated by reference into future filings.