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AbbVie Inc. 8-K Report, Financial Results (Oct 30, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed October 30, 2024
Period End
October 30, 2024
Security
ABBV
In the record · 2016–202610-K1110-Q328-K163

ABBV filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 163 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Nov ’16Nov ’16
  2. Material agreement8-K · May ’20May ’20
  3. Leadership change8-K · Nov ’22Nov ’22
  4. Leadership change8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K filed October 30, 2024. Cited figures are marked; the original filing is the authoritative source.

AbbVie's third-quarter 2024 results (8-K Item 2.02, press release dated October 30, 2024) show net revenues of $14.460 billiona, up 3.8% reported and 4.9% operationally, driven by strong growth in Skyrizi (+50.8%) and Rinvoq (+45.3%) that offset the continued erosion of Humira (-37.2%).

Oncology (+11.6%) and Neuroscience (+15.6%) also grew, while Aesthetics was flat. GAAP diluted EPS fell 12.0% to $0.88b from $1.00, weighed down by a $1.36 billion change in fair value of contingent consideration, $692 million in litigation charges, and $1.89 billion in intangible amortization. Adjusted diluted EPS rose 1.7% to $3.00, and management raised full-year 2024 adjusted EPS guidance to $10.90-$10.94 from $10.67-$10.87, although this range already absorbs a $0.64 per share year-to-date hit from acquired IPR&D and milestones.

The quarter's key strategic events were the completion of the Cerevel Therapeutics acquisition, which adds emraclidine (schizophrenia), tavapadon (Parkinson's disease, with positive Phase 3 TEMPO-1 results) and CVL-354 (depression) to the neuroscience pipeline, and a definitive agreement to acquire Aliada Therapeutics, whose lead Alzheimer's asset ALIA-1758 uses blood-brain barrier-crossing technology. The Aliada deal is expected to close in Q4 2024 and is excluded from guidance. Regulatory progress included FDA approval of Vyalev, EC approvals for Skyrizi in ulcerative colitis and Tepkinly, a CHMP positive opinion for Elahere, and a BLA submission for Teliso-V.

AbbVie also declared a 5.8% quarterly dividend increase, from $1.55 to $1.64c per share, payable February 14, 2025. Investors should note that GAAP results are heavily affected by acquisition accounting and litigation items, so the gap between GAAP EPS ($0.88) and adjusted EPS ($3.00) is large, and the Humira revenue decline continues to be offset by the growth of newer immunology products.

02—Key points

Key Highlights

  1. Total net revenues of $14.460B, up 3.8% reported / 4.9% operational, versus $13.927B a year earlier.
  2. Skyrizi (+50.8% to $3.205B) and Rinvoq (+45.3% to $1.614B) drove immunology growth, offsetting Humira's 37.2% decline to $2.227B.
  3. GAAP diluted EPS fell 12.0% to $0.88; adjusted diluted EPS rose 1.7% to $3.00, with a large gap from amortization, contingent consideration fair-value changes, and litigation charges.
  4. 2024 adjusted EPS guidance raised to $10.90-$10.94 from $10.67-$10.87, including a $0.64 per share year-to-date IPR&D and milestones hit; guidance excludes future IPR&D/milestones.
  5. Cerevel Therapeutics acquisition completed, adding emraclidine, tavapadon (positive Phase 3 TEMPO-1) and CVL-354 to the neuroscience pipeline; Aliada Therapeutics acquisition agreed, expected to close in Q4 2024.
  6. Quarterly dividend increased 5.8% to $1.64 per share, payable February 14, 2025, extending AbbVie's dividend growth record since 2013.
  7. Neuroscience (+15.6% to $2.363B) and Oncology (+11.6% to $1.687B) grew strongly, while Aesthetics was flat at $1.239B.

03—Questions

Frequently Asked Questions

  1. Did AbbVie's core business grow in Q3 2024 despite the Humira decline?

    Yes. Total net revenues grew 4.9% on an operational basis. Skyrizi and Rinvoq growth more than offset Humira's roughly $1.0 billion year-over-year decline in quarterly revenue. Neuroscience and Oncology also posted double-digit reported growth, while Aesthetics was essentially flat.

  2. Why did GAAP EPS fall while adjusted EPS rose?

    GAAP diluted EPS dropped to $0.88 from $1.00 mainly because of a $1.36 billion charge from the change in fair value of contingent consideration (about $0.75 per share), $692 million in litigation charges ($0.31 per share), and $1.89 billion in intangible asset amortization ($0.89 per share). Adjusted EPS excludes these items and rose 1.7% to $3.00, so investors should weigh both measures.

  3. What does the raised guidance mean for investors?

    Full-year 2024 adjusted diluted EPS guidance was raised to $10.90-$10.94 from $10.67-$10.87. The increase is modest, and the range already includes $0.64 per share of year-to-date acquired IPR&D and milestones expense. Future IPR&D and milestone costs, including those from the pending Aliada acquisition, are excluded from guidance and could reduce reported results.

  4. How significant is the Cerevel acquisition for AbbVie's future?

    Cerevel adds a neuroscience pipeline including tavapadon for Parkinson's disease (Phase 3 TEMPO-1 met its primary and key secondary endpoints, with TEMPO-2 topline data expected by end-2024), emraclidine for schizophrenia, and CVL-354 for major depressive disorder. Management says it could meaningfully affect revenue into the next decade, but these assets remain pre-commercial and their approval and commercial success are not assured.

  5. Is the dividend still safe and growing?

    The quarterly dividend rises 5.8% to $1.64 per share, payable February 14, 2025, and the increase is a continuation of a long growth record. AbbVie is an S&P Dividend Aristocrat, and the dividend has risen 310% since 2013. Dividend coverage should be assessed against adjusted EPS of $3.00 for the quarter and the company's cash flow, since GAAP EPS was lower.

04—Continue

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