01—Abstract
Summary
Summary of the 8-K filed February 2, 2024. Cited figures are marked; the original filing is the authoritative source.
AbbVie reported fourth-quarter and full-year 2023 results that were dominated by Humira biosimilar erosion, with GAAP diluted EPS falling sharply while the non-Humira growth platform (Skyrizi, Rinvoq, Vraylar, Botox Therapeutic, Ubrelvy/Qulipta) continued to expand.
Full-year net revenues were $54.318 billiona, down 6.4 percent reported and 5.9 percent operational. Global Humira revenues fell to $14.404 billion for the year, while Skyrizi ($7.763 billion) and Rinvoq ($3.969 billion) grew roughly 50 to 57 percent. GAAP diluted EPS was $2.72 (down 59.0 percent) versus adjusted diluted EPS of $11.11 (down 19.3 percent).
The GAAP-to-adjusted gap was driven largely by intangible amortization, a $4.2 billionb intangible impairment (including the $2.1 billion Imbruvica charge tied to IRA price negotiation and a $1.0 billion CoolSculpting charge), and a $5.1 billion non-cash contingent consideration fair value change. Management guided 2024 adjusted diluted EPS to $11.05 to $11.25, which includes a $0.32 per share dilution from the pending ImmunoGen (approximately $10.1 billion equity value) and Cerevel Therapeutics (approximately $8.7 billion equity value) acquisitions, both expected to close in mid-2024. The guidance excludes any future acquired IPR&D and milestone charges.
Management reaffirmed a high single-digit revenue CAGR through 2029 with 2024 as the base year, and raised its 2027 Skyrizi plus Rinvoq outlook to more than $27 billionc from more than $21 billion, and its Ubrelvy plus Qulipta peak sales outlook to more than $3 billion combined. For investors, the key tension is between a shrinking legacy Humira franchise and a growing newer portfolio that must absorb that erosion, alongside a meaningful increase in R&D spending and a large acquisition program that adds dilution in 2024 and raises execution and integration risk. The filing is a press release furnished under Item 2.02, so the figures are unaudited for the quarter and reflect the company's own non-GAAP presentation.
02—Key points
Key Highlights
- Full-year 2023 net revenues of $54.318 billion, down 6.4 percent reported and 5.9 percent operational, reflecting Humira biosimilar competition.
- Full-year GAAP diluted EPS of $2.72 (down 59.0 percent) versus adjusted diluted EPS of $11.11 (down 19.3 percent); acquired IPR&D and milestones reduced EPS by $0.42.
- Skyrizi ($7.763 billion, up 50.6 percent) and Rinvoq ($3.969 billion, up 57.4 percent) drove growth, while global Humira fell 32.2 percent to $14.404 billion.
- Q4 2023 GAAP diluted EPS was $0.46 versus $1.38 a year earlier; Q4 net revenues were $14.301 billion, down 5.4 percent.
- 2024 adjusted diluted EPS guidance of $11.05 to $11.25 includes a $0.32 dilution from the ImmunoGen and Cerevel acquisitions, expected to close mid-2024; guidance excludes future acquired IPR&D charges.
- Pending acquisitions: ImmunoGen (approximately $10.1 billion equity value, Elahere ADC) and Cerevel Therapeutics (approximately $8.7 billion equity value, neuroscience pipeline).
- Raised long-term outlook: 2027 Skyrizi plus Rinvoq sales above $27 billion (up about $6 billion) and peak Ubrelvy plus Qulipta above $3 billion (up about $1 billion).
03—Questions
Frequently Asked Questions
Why did GAAP EPS fall so much more than adjusted EPS in 2023?
GAAP results absorbed large non-cash and specified charges that AbbVie excludes from adjusted figures. These include $7.9 billion of intangible amortization, $4.2 billion of intangible impairments (mainly the $2.1 billion Imbruvica and $1.0 billion CoolSculpting charges), and a $5.1 billion change in the fair value of contingent consideration. Together these pushed full-year GAAP EPS to $2.72 versus adjusted EPS of $11.11.
How much of the revenue decline is attributable to Humira, and is the rest of the portfolio growing?
Global Humira fell 32.2 percent to $14.404 billion, which is the main source of the decline in total revenue. The non-Humira growth platform is expanding: Skyrizi and Rinvoq grew about 50 and 57 percent, Vraylar rose 35.4 percent, and Botox Therapeutic rose 10.0 percent. Oncology was weaker, with Imbruvica down 21.3 percent, largely because of competitive and pricing pressures.
What does the 2024 guidance imply for investors?
Management guided 2024 adjusted diluted EPS to $11.05 to $11.25, roughly flat with 2023's $11.11. The guidance includes a $0.32 per share dilution from the pending ImmunoGen and Cerevel acquisitions and excludes any unforecastable acquired IPR&D charges, which could reduce reported results. Management characterized 2024 as a year of modest operational revenue growth while absorbing Humira erosion.
Are the pending acquisitions likely to close, and what are the risks?
The filing says both deals are expected to close in mid-2024. The forward-looking statements flag risks including failure to close on the anticipated timeline or at all, costs exceeding expectations, the ability to realize expected benefits, integration difficulties, litigation or regulatory action, and the possibility that either agreement could be terminated upon certain events. The filing does not provide regulatory approval status.
What is AbbVie's long-term growth outlook?
AbbVie reaffirmed a high single-digit compound annual revenue growth rate through 2029, using 2024 as the base year. It also raised its expectations for Skyrizi plus Rinvoq to more than $27 billion in 2027 and for Ubrelvy plus Qulipta to more than $3 billion at peak. These targets depend on continued execution of the non-Humira portfolio and on pipeline and launch assumptions that could change.
04—Continue