AbbVie Reports Full-Year and Fourth-Quarter 2021 Financial Results

Rhea-AI Summary

AbbVie announced robust financial results for Q4 2021, reporting worldwide net revenues of $14.886 billion, a 7.4% increase year-over-year. The immunology portfolio contributed $6.746 billion, while Humira's revenue reached $5.334 billion, showing a modest 3.5% rise. The company confirmed guidance of over $15 billion in combined sales for Skyrizi and Rinvoq by 2025. Notable FDA approvals for Rinvoq and Skyrizi expand treatment options, enhancing long-term growth prospects. Full-year 2022 EPS guidance is set between $9.26 and $9.46.

Positive

• Q4 2021 revenues of $14.886 billion, a 7.4% increase.
• Immunology portfolio revenues reached $6.746 billion, up 13.2%.
• FDA approvals for Rinvoq and Skyrizi expand treatment opportunities.
• Confirmed guidance of >$15 billion in combined sales for Skyrizi and Rinvoq by 2025.
• Full-year 2022 GAAP diluted EPS guidance of $9.26 to $9.46.

Negative

• International Humira net revenues decreased by 9.1% due to biosimilar competition.
• Imbruvica net revenues fell by 2.7% in Q4 2021.

NORTH CHICAGO, Ill., Feb. 2, 2022 /PRNewswire/ -- AbbVie (NYSE:ABBV) announced financial results for the fourth quarter and full year ended December 31, 2021.

"We delivered another year of outstanding performance in 2021 with double-digit revenue and EPS growth that were well above our initial expectations," said Richard A. Gonzalez, chairman and chief executive officer, AbbVie. "We are entering 2022 with significant momentum and expect our diverse set of growth assets, robust pipeline and excellent execution to deliver continued strong performance this year and over the long term."

Fourth-Quarter Results

• Worldwide net revenues were $14.886 billion, an increase of 7.4 percent on a reported basis, or 7.5 percent on an operational basis.
• Global net revenues from the immunology portfolio were $6.746 billion, an increase of 13.2 percent on a reported basis, or 13.3 percent on an operational basis.
• Global Humira net revenues of $5.334 billion increased 3.5 percent on a reported and operational basis. U.S. Humira net revenues were $4.553 billion, an increase of 6.0 percent. Internationally, Humira net revenues were $781 million, a decrease of 9.1 percent on a reported basis, or 8.8 percent on an operational basis, due to biosimilar competition.
• Global Skyrizi net revenues were $895 million.
• Global Rinvoq net revenues were $517 million.
• Global net revenues from the hematologic oncology portfolio were $1.873 billion, an increase of 4.6 percent on a reported basis, or 4.7 percent on an operational basis.
• Global Imbruvica net revenues were $1.385 billion, a decrease of 2.7 percent, with U.S. net revenues of $1.114 billion and international profit sharing of $271 million.
• Global Venclexta net revenues were $488 million, an increase of 33.3 percent on a reported basis, or 34.0 percent on an operational basis.
• Global net revenues from the neuroscience portfolio were $1.654 billion, an increase of 19.0 percent on a reported and operational basis.
• Global Botox Therapeutic net revenues were $671 million, an increase of 18.3 percent on a reported basis, or 18.1 percent on an operational basis.
• Vraylar net revenues were $489 million, an increase of 21.8 percent.
• Global Ubrelvy net revenues were $183 million.
• Global net revenues from the aesthetics portfolio were $1.407 billion, an increase of 23.3 percent on a reported basis, or 22.8 percent on an operational basis.
• Global Botox Cosmetic net revenues were $626 million, an increase of 27.0 percent on a reported basis, or 26.6 percent on an operational basis.
• Global Juvederm net revenues were $432 million, an increase of 30.6 percent on a reported basis, or 29.8 percent on an operational basis.
• On a GAAP basis, the gross margin ratio in the fourth quarter was 71.0 percent. The adjusted gross margin ratio was 83.6 percent.
• On a GAAP basis, selling, general and administrative expense was 21.9 percent of net revenues. The adjusted SG&A expense was 22.2 percent of net revenues.
• On a GAAP basis, research and development expense was 12.3 percent of net revenues. The adjusted R&D expense was 12.1 percent of net revenues, reflecting funding actions supporting all stages of our pipeline.
• On a GAAP basis, the operating margin in the fourth quarter was 34.1 percent. The adjusted operating margin was 49.3 percent.
• On a GAAP basis, net interest expense was $571 million.
• On a GAAP basis, the tax rate in the quarter was 5.3 percent. The adjusted tax rate was 12.5 percent.
• Diluted EPS in the fourth quarter was $2.26 on a GAAP basis. Adjusted diluted EPS, excluding specified items, was $3.31.

 

Note: "Operational" comparisons are presented at constant currency rates that reflect comparative local currency net revenues at the prior year's foreign exchange rates.

Recent Events

• AbbVie confirmed prior revenue guidance of greater than $15 billion in combined Skyrizi (risankizumab) and Rinvoq (upadacitinib) risk-adjusted sales in 2025. AbbVie expects each asset to deliver risk-adjusted sales of greater than $7.5 billion in 2025. Skyrizi is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally.
• AbbVie announced that the U.S. Food and Drug Administration (FDA) approved Rinvoq for the treatment of moderate to severe atopic dermatitis (AD) in adults and children 12 years of age and older whose disease did not respond to previous treatment and is not well controlled with other pills or injections, including biologic medicines, or when use of other pills or injections is not recommended. The approval includes two dose strengths (15 mg and 30 mg, once daily) and is supported by efficacy and safety data from one of the largest registrational Phase 3 programs for AD with more than 2,500 patients evaluated across three studies. This milestone marked the third FDA-approved indication for Rinvoq.
• AbbVie announced the FDA approved Rinvoq (15 mg, once daily) for the treatment of adults with active psoriatic arthritis (PsA) who have had an inadequate response or intolerance to one or more tumor necrosis factor (TNF) blockers. The approval is supported by two Phase 3 clinical studies where Rinvoq showed efficacy across multiple measures of disease activity in active PsA with a safety profile consistent with that seen in rheumatoid arthritis (RA). This milestone marked the second FDA-approved indication for Rinvoq.
• AbbVie announced the FDA approved Skyrizi for the treatment of adults with active PsA. The approval is supported by two Phase 3 clinical studies where Skyrizi demonstrated significant improvement in joint symptoms, including swollen, tender and painful joints, compared to placebo. This milestone marked the second FDA-approved indication for Skyrizi.
• AbbVie announced the European Commission (EC) approved Skyrizi alone or in combination with methotrexate (MTX), for the treatment of active PsA in adults who have had an inadequate response or who have been intolerant to one or more disease-modifying anti-rheumatic drugs (DMARDs). The positive opinion is based on data from two pivotal Phase 3 studies which evaluated the efficacy and safety of Skyrizi in adults with active PsA and marks Skyrizi's second indication in the European Union (EU).
• AbbVie announced that it submitted applications to the FDA and European Medicines Agency (EMA) seeking approval for Rinvoq (15 mg, once daily) for the treatment of adults with active non-radiographic axial spondyloarthritis (nr-axSpA). The submissions are supported by the Phase 3 SELECT-AXIS 2 (study 2) clinical trial in which Rinvoq demonstrated significant improvements in signs and symptoms as well as physical function and disease activity versus placebo. No new safety risks were observed compared to the known safety profile of Rinvoq. In addition, AbbVie requested label enhancements for Rinvoq in the EU to include adult patients with active AS who had an inadequate response to biologic DMARDs, based on newly generated clinical data. These data were also provided to the FDA in support of the agency's ongoing review of the supplemental New Drug Application (sNDA) for Rinvoq in AS.
• AbbVie announced that it submitted an application to the EMA seeking approval for Skyrizi (600 mg intravenous induction and 360 mg subcutaneous maintenance therapy) for the treatment of patients 16 years and older with moderate to severe Crohn's disease (CD). The submission is supported by three pivotal Phase 3 studies in which Skyrizi demonstrated significant improvements in clinical remission and endoscopic response as both induction and maintenance therapy. The overall safety findings in these pivotal studies were generally consistent with the known safety profile of Skyrizi. If approved, CD will mark the third indication for Skyrizi in the EU.
• AbbVie announced positive top-line results from the Phase 3 induction study, U-EXCEED, which showed Rinvoq (45 mg, once daily) achieved both primary endpoints of clinical remission and endoscopic response at week 12 as well as key secondary endpoints in patients with moderate to severe CD. The safety results in this study were consistent with the known profile of Rinvoq, with no new safety risks observed. U-EXCEED is the first of two Phase 3 induction studies to evaluate the safety and efficacy of Rinvoq in adults with moderate to severe CD and full results from the study will be presented at a future medical meeting and submitted for publication in a peer-reviewed journal.
• At the American College of Rheumatology's (ACR) annual meeting, AbbVie shared 38 abstracts from across its rheumatology portfolio that underscored AbbVie's commitment to advancing its portfolio of medicines to help more people living with rheumatic diseases. Highlights included new efficacy data on Rinvoq in people with active PsA and axial involvement, new long-term analysis evaluating the sustainability of response to Rinvoq among patients with RA as well as efficacy and safety data from the KEEPsAKE 1 and KEEPsAKE 2 trials evaluating Skyrizi in adults with PsA treated through 24 weeks.
• AbbVie announced that the FDA granted Breakthrough Therapy Designation (BTD) to investigational telisotuzumab vedotin (Teliso-V) for the treatment of patients with advanced/metastatic epidermal growth factor receptor (EGFR) wild type, nonsquamous non-small cell lung cancer (NSCLC) with high levels of c-Met overexpression whose disease has progressed on or after platinum-based therapy. The BTD is supported by interim data from the ongoing Phase 2 LUMINOSITY study and a Phase 3 study is planned to begin in the first half of 2022.
• At the American Society of Hematology Annual Meeting (ASH), AbbVie presented results from nearly 30 abstracts across 8 types of cancer. Highlights included data from the Phase 2 CAPTIVATE and Phase 3 GLOW studies evaluating minimal residual disease (MRD) and disease-free survival outcomes with fixed duration treatment in patients with chronic lymphocytic leukemia (CLL)/small lymphocytic leukemia (SLL) who received the Imbruvica (ibrutinib) + Venclexta (venetoclax) combination regimen; results from several studies evaluating Venclexta in approved and investigational indications; as well as data evaluating ABBV-383, epcoritamab and lemzoparlimab. Venetoclax is being developed by AbbVie and Roche and is jointly commercialized by AbbVie and Genentech, a member of the Roche Group, in the U.S. and by AbbVie outside of the U.S. Imbruvica is jointly developed and commercialized with Janssen Biotech, Inc. Epcoritamab is being co-developed by Genmab and AbbVie. Lemzoparlimab is being developed through a collaboration with AbbVie and I-Mab.
• Allergan Aesthetics announced the successful completion of its acquisition of Soliton, Inc. The addition of Soliton and its technology complements Allergan Aesthetics' portfolio of non-invasive body contouring treatments to now include a proven treatment for the appearance of cellulite.
• At the American Society for Dermatologic Surgery meeting, Allergan Aesthetics presented 6 abstracts from its leading portfolio of aesthetic treatments and products, which highlighted its approach to innovative science and commitment to bring new and impactful treatments to customers and patients globally. Highlights included two Botox Cosmetic (OnabotulinumtoxinA) abstracts that were recognized as "Best of Cosmetic Oral Abstracts".
• AbbVie announced the FDA approved Vuity (pilocarpine HCl ophthalmic solution) 1.25% for the treatment of presbyopia, commonly known as age-related blurry near vision, in adults. Vuity is the first and only FDA-approved eye drop to treat this common and progressive eye condition that affects nearly half of the U.S. adult population. The approval is supported by two pivotal Phase 3 studies that demonstrated Vuity works in as early as 15 minutes and lasts for up to 6 hours, as measured on day 30, to improve near and intermediate vision without impacting distance vision.
• At the American Academy of Ophthalmology Annual Meeting (AAO), AbbVie presented new data from its leading eye care portfolio. Highlights included new pooled post-hoc analyses and patient-reported outcomes of Vuity 1.25%, analyses on Durysta (bimatoprost intracameral implant) and 3 real-world data studies on the glaucoma patient journey.
• AbbVie announced that it has extended its preclinical oncology research collaboration agreement with the University of Chicago through 2025. Under the agreement, the organizations will continue working together to advance research in several areas, focusing on oncology, and AbbVie gains an option for an exclusive license to certain University of Chicago discoveries made as part of the collaboration.

Full-Year 2022 Outlook

AbbVie is issuing its GAAP diluted EPS guidance for the full-year 2022 of $9.26 to $9.46. AbbVie expects to deliver adjusted diluted EPS for the full-year 2022 of $14.00 to $14.20. The company's 2022 adjusted diluted EPS guidance excludes $4.74 per share of intangible asset amortization expense, non-cash charges for contingent consideration adjustments and other specified items.

About AbbVie

AbbVie's mission is to discover and deliver innovative medicines that solve serious health issues today and address the medical challenges of tomorrow. We strive to have a remarkable impact on people's lives across several key therapeutic areas: immunology, oncology, neuroscience, eye care, virology, women's health and gastroenterology, in addition to products and services across its Allergan Aesthetics portfolio. For more information about AbbVie, please visit us at www.abbvie.com. Follow @abbvie on Twitter, Facebook, LinkedIn or Instagram.

Conference Call

AbbVie will host an investor conference call today at 8:00 a.m. Central time to discuss our fourth-quarter performance. The call will be webcast through AbbVie's Investor Relations website at investors.abbvie.com. An archived edition of the call will be available after 11:00 a.m. Central time.

Non-GAAP Financial Results

Financial results for 2021 and 2020 are presented on both a reported and a non-GAAP basis. Reported results were prepared in accordance with GAAP and include all revenue and expenses recognized during the period. Non-GAAP results adjust for certain non-cash items and for factors that are unusual or unpredictable, and exclude those costs, expenses, and other specified items presented in the reconciliation tables later in this release. AbbVie's management believes non-GAAP financial measures provide useful information to investors regarding AbbVie's results of operations and assist management, analysts, and investors in evaluating the performance of the business. Non-GAAP financial measures should be considered in addition to, and not as a substitute for, measures of financial performance prepared in accordance with GAAP. The company's 2022 financial guidance is also being provided on both a reported and a non-GAAP basis.

Forward-Looking Statements

Some statements in this news release are, or may be considered, forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "anticipate," "project" and similar expressions, among others, generally identify forward-looking statements. AbbVie cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. Such risks and uncertainties include, but are not limited to, the failure to realize the expected benefits of AbbVie's acquisition of Allergan or to promptly and effectively integrate Allergan's business, challenges to intellectual property, competition from other products, difficulties inherent in the research and development process, adverse litigation or government action, and changes to laws and regulations applicable to our industry. Additional information about the economic, competitive, governmental, technological and other factors that may affect AbbVie's operations is set forth in Item 1A, "Risk Factors," of AbbVie's 2020 Annual Report on Form 10-K, which has been filed with the Securities and Exchange Commission, as updated by its Quarterly Reports on Form 10-Q and in other documents that AbbVie subsequently files with the Securities and Exchange Commission that update, supplement or supersede such information. AbbVie undertakes no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments, except as required by law.

AbbVie Inc.
Key Product Revenues
Quarter Ended December 31, 2021
(Unaudited)
							% Change vs. 4Q20
	Net Revenues (in millions)						Reported						Operationala
	U.S.		Int'l.		Total		U.S.		Int'l.		Total		Int'l.		Total
NET REVENUES	$11,677		$3,209		$14,886		9.5%		0.5%		7.4%		0.9%		7.5%
Immunology	5,696		1,050		6,746		14.2		8.3		13.2		9.0		13.3
Humira	4,553		781		5,334		6.0		(9.1)		3.5		(8.8)		3.5
Skyrizi	761		134		895		68.6		82.1		70.5		84.8		70.9
Rinvoq	382		135		517		57.1		>100.0		84.4		>100.0		85.2
Hematologic Oncology	1,363		510		1,873		(0.7)		22.5		4.6		23.1		4.7
Imbruvicab	1,114		271		1,385		(4.3)		4.6		(2.7)		4.6		(2.7)
Venclexta	249		239		488		19.4		51.8		33.3		53.5		34.0
Aesthetics	877		530		1,407		21.1		27.1		23.3		25.8		22.8
Botox Cosmetic	397		229		626		31.3		20.3		27.0		19.3		26.6
Juvederm Collection	180		252		432		22.8		36.8		30.6		35.3		29.8
Other Aesthetics	300		49		349		9.1		15.3		9.9		13.9		9.7
Neuroscience	1,440		214		1,654		21.1		7.1		19.0		7.0		19.0
Botox Therapeutic	561		110		671		18.9		15.4		18.3		14.1		18.1
Vraylar	489		—		489		21.8		n/a		21.8		n/a		21.8
Duodopa	29		99		128		0.1		(2.0)		(1.5)		(0.7)		(0.5)
Ubrelvy	183		—		183		>100.0		n/a		>100.0		n/a		>100.0
Other Neuroscience	178		5		183		(19.9)		42.0		(18.9)		34.3		(19.0)
Eye Care	672		288		960		7.6		(4.7)		3.6		(3.8)		3.9
Lumigan/Ganfort	72		77		149		6.2		(9.2)		(2.4)		(9.0)		(2.3)
Alphagan/Combigan	102		39		141		9.0		(4.3)		4.9		(3.6)		5.1
Restasis	350		14		364		4.9		28.1		5.7		32.8		5.9
Other Eye Care	148		158		306		14.2		(4.8)		3.6		(3.7)		4.2
Women's Health	216		7		223		(12.5)		(18.4)		(12.7)		(22.1)		(12.8)
Lo Loestrin	123		5		128		(10.6)		16.1		(10.0)		9.9		(10.1)
Orilissa/Oriahnn	37		2		39		3.6		44.1		4.8		37.2		4.6
Other Women's Health	56		—		56		(24.2)		(75.9)		(26.2)		(75.8)		(26.2)
Other Key Products	1,146		283		1,429		0.9		(8.6)		(1.1)		(6.8)		(0.7)
Mavyret	197		230		427		(10.9)		(11.6)		(11.3)		(9.4)		(10.1)
Creon	327		—		327		7.8		n/a		7.8		n/a		7.8
Lupron	148		44		192		6.1		5.4		6.0		5.5		6.0
Linzess/Constella	278		9		287		0.1		20.4		0.6		17.4		0.5
Synthroid	196		—		196		0.9		n/a		0.9		n/a		0.9

a	"Operational" comparisons are presented at constant currency rates that reflect comparative local currency net revenues at the prior year's foreign exchange rates.
b	Reflects profit sharing for Imbruvica international revenues.
n/a = not applicable

 

AbbVie Inc.
Key Product Revenues
Twelve Months Ended December 31, 2021
(Unaudited)
							% Change vs. 12M20
	Net Revenues (in millions)						Reported					Comparable Operationala, b
	U.S.		Int'l.		Total		U.S.		Int'l.		Total		U.S.		Int'l.		Total
ADJUSTED NET REVENUESc	$43,435		$12,687		$56,122		24.6%		16.1%		22.6%		12.3%		4.7%		10.5%
Immunology	21,087		4,197		25,284		16.2		4.8		14.1		16.2		1.2		13.5
Humira	17,330		3,364		20,694		7.6		(9.6)		4.3		7.6		(12.8)		3.7
Skyrizi	2,486		453		2,939		79.6		>100.0		84.9		79.6		>100.0		84.0
Rinvoq	1,271		380		1,651		94.8		>100.0		>100.0		94.8		>100.0		>100.0
Hematologic Oncology	5,255		1,973		7,228		2.8		28.0		8.7		2.8		26.2		8.3
Imbruvicad	4,321		1,087		5,408		0.4		7.7		1.8		0.4		7.7		1.8
Venclexta	934		886		1,820		16.1		66.2		36.1		16.1		60.9		34.0
Aesthetics	3,350		1,883		5,233		>100.0		>100.0		>100.0		44.7		52.2		47.3
Botox Cosmetic*	1,424		808		2,232		>100.0		90.0		>100.0		57.4		42.6		51.8
Juvederm Collection*	658		877		1,535		>100.0		>100.0		>100.0		53.6		61.3		57.9
Other Aesthetics*	1,268		198		1,466		90.2		>100.0		93.0		29.2		56.9		32.1
Neuroscience	5,061		866		5,927		76.8		36.7		69.5		23.0		10.6		21.1
Botox Therapeutic*	2,012		439		2,451		74.3		89.0		76.7		20.5		22.8		20.9
Vraylar*	1,728		—		1,728		81.7		n/a		81.7		24.5		n/a		24.5
Duodopa	102		409		511		(1.0)		4.6		3.4		(1.0)		(0.1)		(0.3)
Ubrelvy*	552		—		552		>100.0		n/a		>100.0		>100.0		n/a		>100.0
Other Neuroscience*	667		18		685		26.3		77.4		27.2		(17.7)		14.2		(17.2)
Eye Care	2,403		1,164		3,567		65.9		58.2		63.3		5.6		2.2		4.5
Lumigan/Ganfort*	273		306		579		64.7		44.1		53.1		(0.1)		(10.2)		(5.6)
Alphagan/Combigan*	373		156		529		66.5		52.5		62.1		5.7		1.7		4.5
Restasis*	1,234		56		1,290		63.3		75.3		63.8		4.1		24.9		4.9
Other Eye Care*	523		646		1,169		72.7		66.1		69.0		12.9		7.6		10.0
Women's Health	771		25		796		19.1		(1.6)		18.3		(16.0)		(33.7)		(16.6)
Lo Loestrin*	423		14		437		21.9		43.3		22.5		(18.5)		(4.9)		(18.2)
Orilissa/Oriahnn	139		6		145		15.4		57.7		16.7		15.4		47.6		16.4
Other Women's Health*	209		5		214		16.2		(57.5)		11.7		(24.8)		(73.9)		(27.7)
Other Key Products	4,322		1,167		5,489		10.3		(3.9)		6.9		2.8		(7.1)		0.6
Mavyret	754		956		1,710		(4.0)		(8.5)		(6.5)		(4.0)		(10.8)		(7.8)
Creon	1,191		—		1,191		6.9		n/a		6.9		6.9		n/a		6.9
Lupron	604		179		783		0.5		18.0		4.0		0.5		15.0		3.4
Linzess/Constella*	1,006		32		1,038		55.1		77.3		55.7		8.0		9.9		8.1
Synthroid	767		—		767		(0.6)		n/a		(0.6)		(0.6)		n/a		(0.6)

a	"Comparable Operational" comparisons include full-period current year and prior year results for Allergan products, as if the acquisition closed on January 1, 2019, and are presented at constant currency rates that reflect comparative local currency net revenues at the prior year's foreign exchange rates.
b	All historically reported Allergan revenues have been recast to conform to AbbVie's revenue recognition accounting policies and reporting conventions for certain rebates and discounts. Historically reported Allergan revenues also exclude Zenpep and Viokace product revenues, which were both divested as part of the acquisition, as well as specified items.
c	Adjusted net revenues exclude specified items. Refer to the Reconciliation of GAAP Reported to Non-GAAP Adjusted Information for further details. Percentage change is calculated using adjusted net revenues.
d	Reflects profit sharing for Imbruvica international revenues.
* Represents product(s) acquired as part of the Allergan acquisition.
n/a = not applicable

 

AbbVie Inc.
Consolidated Statements of Earnings
Quarter and Twelve Months Ended December 31, 2021 and 2020
(Unaudited) (In millions, except per share data)
	Fourth Quarter Ended December 31				Twelve Months Ended December 31
	2021		2020		2021		2020
Net revenues	$       14,886		$       13,858		$       56,197		$       45,804
Cost of products sold	4,320		4,684		17,446		15,387
Selling, general and administrative	3,260		3,231		12,349		11,299
Research and development	1,827		1,890		7,084		6,557
Acquired in-process research and development	405		300		962		1,198
Other operating expense, net	—		—		432		—
Total operating costs and expenses	9,812		10,105		38,273		34,441
Operating earnings	5,074		3,753		17,924		11,363
Interest expense, net	571		618		2,384		2,280
Net foreign exchange loss	16		17		51		71
Other expense, net	216		4,625		2,500		5,614
Earnings (loss) before income tax expense	4,271		(1,507)		12,989		3,398
Income tax expense (benefit)	226		(1,545)		1,440		(1,224)
Net earnings	4,045		38		11,549		4,622
Net earnings attributable to noncontrolling interest	1		2		7		6
Net earnings attributable to AbbVie Inc.	$          4,044		$               36		$       11,542		$          4,616
Diluted earnings per share attributable to AbbVie Inc.	$            2.26		$            0.01		$            6.45		$            2.72
Adjusted diluted earnings per sharea	$            3.31		$            2.92		$          12.70		$          10.56
Weighted-average diluted shares outstanding	1,778		1,776		1,777		1,673

a	Refer to the Reconciliation of GAAP Reported to Non-GAAP Adjusted Information for further details. Weighted-average diluted shares outstanding includes the effect of dilutive securities.

 

AbbVie Inc.
Reconciliation of GAAP Reported to Non-GAAP Adjusted Information
Quarter Ended December 31, 2021
(Unaudited) (In millions, except per share data)
1.     Specified items impacted results as follows:
					4Q21
					Earnings				Diluted
					Pre-tax		After-taxa		EPS
As reported (GAAP)					$               4,271		$               4,044		$                 2.26
Adjusted for specified items:
Intangible asset amortization					1,806		1,490		0.84
Acquisition and integration costs					(191)		(212)		(0.12)
Acquired IPR&D					405		405		0.23
Change in fair value of contingent consideration					232		232		0.13
Litigation matters					200		167		0.09
Impacts related to tax law changes					—		(265)		(0.15)
Other					41		58		0.03
As adjusted (non-GAAP)					$               6,764		$               5,919		$                 3.31
a Represents net earnings attributable to AbbVie Inc.
Acquisition and integration costs reflect a recovery of certain Allergan acquisition-related regulatory fees partially offset by Allergan-related integration costs and Soliton acquisition costs. Acquired IPR&D represents initial costs to acquire rights to in-process R&D projects through R&D collaborations, licensing arrangements or other asset acquisitions. Other primarily includes COVID-19 related expenses and tax related items.
2.     The impact of the specified items by line item was as follows:
	4Q21
	Cost of products sold		SG&A		R&D		Acquired IPR&D		Other expense, net
As reported (GAAP)	$       4,320		$       3,260		$       1,827		$          405		$          216
Adjusted for specified items:
Intangible asset amortization	(1,806)		—		—		—		—
Acquisition and integration costs	(43)		250		(16)		—		—
Acquired IPR&D	—		—		—		(405)		—
Change in fair value of contingent consideration	—		—		—		—		(232)
Litigation matters	—		(200)		—		—		—
Other	(23)		(3)		(13)		—		(2)
As adjusted (non-GAAP)	$       2,448		$       3,307		$       1,798		$             —		$           (18)
3.     The adjusted tax rate for the fourth quarter of 2021 was 12.5 percent, as detailed below:
					4Q21
					Pre-tax earnings		Income taxes		Tax rate
As reported (GAAP)					$              4,271		$                  226		5.3 %
Specified items					2,493		618		24.8 %
As adjusted (non-GAAP)					$              6,764		$                  844		12.5 %

 

AbbVie Inc.
Reconciliation of GAAP Reported to Non-GAAP Adjusted Information
Quarter Ended December 31, 2020
(Unaudited) (In millions, except per share data)
1.     Specified items impacted results as follows:
					4Q20
					Earnings (Loss)				Diluted
					Pre-tax		After-taxa		EPS
As reported (GAAP)					$              (1,507)		$                    36		$                 0.01
Adjusted for specified items:
Intangible asset amortization					1,838		1,444		0.81
Acquisition and integration costs					467		399		0.22
Milestones and other R&D expenses					48		39		0.02
Acquired IPR&D					300		296		0.16
Change in fair value of contingent consideration					4,675		4,671		2.63
Tax audit settlements					—		(140)		(0.08)
Impacts related to tax law changes					—		(1,492)		(0.84)
Other					92		(28)		(0.01)
As adjusted (non-GAAP)					$               5,913		$               5,225		$                 2.92
a Represents net earnings attributable to AbbVie Inc.
Acquisition and integration costs reflect integration costs and amortization of the acquisition date fair value step-up for inventory related to the Allergan acquisition. Milestones and other R&D expenses include milestone payments for previously announced collaborations. Acquired IPR&D represents initial costs to acquire rights to in-process R&D projects through R&D collaborations, licensing arrangements or other asset acquisitions. Other primarily includes tax related items and COVID-19 related expenses.
2.     The impact of the specified items by line item was as follows:
	4Q20
	Cost of products sold		SG&A		R&D		Acquired  IPR&D		Other expense, net
As reported (GAAP)	$     4,684		$     3,231		$     1,890		$        300		$     4,625
Adjusted for specified items:
Intangible asset amortization	(1,838)		—		—		—		—
Acquisition and integration costs	(272)		(126)		(69)		—		—
Milestones and other R&D expenses	—		—		(48)		—		—
Acquired IPR&D	—		—		—		(300)		—
Change in fair value of contingent consideration	—		—		—		—		(4,675)
Other	(51)		(16)		(22)		—		(3)
As adjusted (non-GAAP)	$     2,523		$     3,089		$     1,751		$           —		$         (53)
3.     The adjusted tax rate for the fourth quarter of 2020 was 11.6 percent, as detailed below:
					4Q20
					Pre-tax earnings (loss)		Income taxes		Tax rate
As reported (GAAP)					$             (1,507)		$             (1,545)		102.5 %
Specified items					7,420		2,231		30.1 %
As adjusted (non-GAAP)					$              5,913		$                  686		11.6 %

 

AbbVie Inc.
Reconciliation of GAAP Reported to Non-GAAP Adjusted Information
Twelve Months Ended December 31, 2021
(Unaudited) (In millions, except per share data)
1.     Specified items impacted results as follows:
									12M21
									Earnings				Diluted
									Pre-tax		After-taxa		EPS
As reported (GAAP)									$             12,989		$             11,542		$                 6.45
Adjusted for specified items:
Intangible asset amortization									7,718		6,419		3.60
Acquisition and integration costs									344		215		0.12
Milestones and other R&D expenses									359		307		0.17
Acquired IPR&D									962		948		0.53
Calico collaboration									500		500		0.28
Change in fair value of contingent consideration									2,679		2,677		1.50
Litigation matters									307		253		0.14
Impacts related to tax law changes									—		(265)		(0.15)
Other									88		100		0.06
As adjusted (non-GAAP)									$             25,946		$             22,696		$               12.70
a Represents net earnings attributable to AbbVie Inc.
Acquisition and integration costs reflect Allergan integration costs, Soliton acquisition costs as well as amortization of the acquisition date fair value step-up for inventory related to the Allergan acquisition partially offset by a recovery of certain Allergan acquisition-related regulatory fees. Milestones and other R&D expenses include milestone payments for previously announced collaborations and the purchase of FDA priority review vouchers from third parties. Acquired IPR&D represents initial costs to acquire rights to in-process R&D projects through R&D collaborations, licensing arrangements or other asset acquisitions. Other primarily includes COVID-19 related expenses, restructuring charges associated with streamlining global operations and tax related items, offset by milestone revenue under an existing collaboration agreement.
2.     The impact of the specified items by line item was as follows:
	12M21
	Net revenues		Cost of products sold		SG&A		R&D		Acquired  IPR&D		Other operating expense, net		Other expense, net
As reported (GAAP)	$   56,197		$   17,446		$   12,349		$     7,084		$        962		$        432		$     2,500
Adjusted for specified items:
Intangible asset amortization	—		(7,718)		—		—		—		—		—
Acquisition and integration costs	—		(215)		(25)		(104)		—		—		—
Milestones and other R&D expenses	—		—		—		(359)		—		—		—
Acquired IPR&D	—		—		—		—		(962)		—		—
Calico collaboration	—		—		—		—		—		(500)		—
Change in fair value of contingent consideration	—		—		—		—		—		—		(2,679)
Litigation matters	—		—		(307)		—		—		—		—
Other	(75)		(88)		(53)		(103)		—		68		13
As adjusted (non-GAAP)	$   56,122		$     9,425		$   11,964		$     6,518		$          —		$           —		$       (166)
3.     The adjusted tax rate for the full-year 2021 was 12.5 percent, as detailed below:
									12M21
									Pre-tax earnings		Income taxes		Tax rate
As reported (GAAP)									$            12,989		$              1,440		11.1 %
Specified items									12,957		1,803		13.9 %
As adjusted (non-GAAP)									$            25,946		$              3,243		12.5 %

 

AbbVie Inc.
Reconciliation of GAAP Reported to Non-GAAP Adjusted Information
Twelve Months Ended December 31, 2020
(Unaudited) (In millions, except per share data)
1.     Specified items impacted results as follows:
											12M20
											Earnings				Diluted
											Pre-tax		After-taxa		EPS
As reported (GAAP)											$               3,398		$               4,616		$                 2.72
Adjusted for specified items:
Intangible asset amortization											5,805		4,805		2.87
Acquisition and integration costs											3,366		3,023		1.81
Milestones and other R&D expenses											273		241		0.14
Acquired IPR&D											1,198		1,194		0.71
Change in fair value of contingent consideration											5,753		5,749		3.43
Tax audit settlements											—		(200)		(0.12)
Impacts related to tax law changes											—		(1,689)		(1.02)
Other											239		42		0.02
As adjusted (non-GAAP)											$             20,032		$             17,781		$               10.56
a Represents net earnings attributable to AbbVie Inc.
Acquisition and integration costs reflect transaction and financing costs, compensation expense and other integration costs as well as amortization of the acquisition date fair value step-up for inventory related to the Allergan acquisition. Milestones and other R&D expenses include milestone payments for previously announced collaborations and the purchase of an FDA priority review voucher from a third party. Acquired IPR&D represents initial costs to acquire rights to in-process R&D projects through R&D collaborations, licensing arrangements or other asset acquisitions. Other primarily includes tax related items and COVID-19 related charitable contributions and expenses.
2.     The impact of the specified items by line item was as follows:
	12M20
	Net revenues		Cost of products sold		SG&A		R&D		Acquired  IPR&D		Interest expense, net		Net foreign exchange loss		Other expense, net
As reported (GAAP)	$   45,804		$   15,387		$   11,299		$     6,557		$     1,198		$     2,280		$            71		$     5,614
Adjusted for specified items:
Intangible asset amortization	—		(5,805)		—		—		—		—		—		—
Acquisition and integration costs	—		(1,292)		(1,416)		(384)		—		(274)		—		—
Milestones and other R&D expenses	—		—		—		(273)		—		—		—		—
Acquired IPR&D	—		—		—		—		(1,198)		—		—		—
Change in fair value of contingent consideration	—		—		—		—		—		—		—		(5,753)
Other	(20)		(115)		(80)		(70)		—		—		9		(3)
As adjusted (non-GAAP)	$   45,784		$     8,175		$     9,803		$     5,830		$          —		$     2,006		$            80		$       (142)
3.     The adjusted tax rate for the full-year 2020 was 11.2 percent, as detailed below:
											12M20
											Pre-tax earnings		Income taxes		Tax rate
As reported (GAAP)											$              3,398		$             (1,224)		(36.0) %
Specified items											16,634		3,469		20.9 %
As adjusted (non-GAAP)											$            20,032		$              2,245		11.2 %

 

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SOURCE AbbVie

FAQ

What were AbbVie's Q4 2021 financial results?

AbbVie reported Q4 2021 revenues of $14.886 billion, a 7.4% increase from the previous year.

What is AbbVie's EPS guidance for 2022?

AbbVie expects GAAP diluted EPS for 2022 to be between $9.26 and $9.46.

How much revenue did Humira generate for AbbVie in Q4 2021?

Humira generated net revenues of $5.334 billion in Q4 2021, a 3.5% increase.

What are the new FDA approvals for AbbVie products?

Rinvoq received FDA approval for atopic dermatitis and active psoriatic arthritis, while Skyrizi was approved for active psoriatic arthritis.

What is the sales guidance for Skyrizi and Rinvoq by 2025?

AbbVie confirmed a sales guidance of over $15 billion combined for Skyrizi and Rinvoq by 2025.