AbbVie Reports Strong Q2 2024 Performance, Adjusts Full-Year EPS Guidance

Solid Financial Results for Q2 2024

AbbVie Inc. has reported its financial results for the second quarter of 2024, showcasing a resilient performance despite certain challenges. The company achieved net revenues of $14.462 billion, reflecting a 4.3% increase on a reported basis and a 5.6% increase on an operational basis. However, the diluted EPS on a GAAP basis saw a decrease of 32.5%, landing at $0.77, while the adjusted diluted EPS decreased by 8.9% to $2.65. This adjusted figure was impacted by a $0.52 per share expense related to acquired in-process research and development (IPR&D) and milestone payments.

Immunology Portfolio Performance

AbbVie’s Immunology portfolio generated global net revenues of $6.971 billion, representing a 2.3% increase on a reported basis, or 3.5% operationally. Despite this growth, Humira, a key product within this portfolio, experienced a significant revenue decline of 29.8% on a reported basis and 28.9% operationally, resulting in global net revenues of $2.814 billion. U.S. sales for Humira dropped by 31.6%, while international revenues fell by 18.9% on a reported basis, or 12.5% operationally.

Conversely, Skyrizi and Rinvoq, newer additions to the portfolio, demonstrated strong growth. Skyrizi’s global net revenues surged by 44.8% on a reported basis, reaching $2.727 billion, and Rinvoq’s revenues increased by 55.8% to $1.430 billion, further solidifying their positions as major revenue drivers for AbbVie.

Oncology Portfolio Gains

AbbVie’s Oncology portfolio also posted solid results, with global net revenues of $1.634 billion, marking a 10.5% increase on a reported basis and 12.2% on an operational basis. Within this portfolio, Imbruvica generated $833 million, although this represented an 8.2% decline in global revenues. Venclexta, another key product, recorded $637 million in global net revenues, an increase of 11.5% on a reported basis and 15.8% operationally.

Neuroscience Portfolio Highlights

The Neuroscience portfolio exhibited robust growth, with global net revenues climbing by 14.7% on a reported basis to $2.162 billion. Notable contributions came from Botox Therapeutic, with revenues of $814 million, and Vraylar, with $774 million, both showing significant growth rates. Additionally, Ubrelvy and Qulipta combined for $381 million in global net revenues, reflecting strong demand and increasing market penetration.

Aesthetics Portfolio Performance

AbbVie’s Aesthetics portfolio, including Botox Cosmetic and Juvederm, achieved global net revenues of $1.390 billion, a modest increase of 0.5% on a reported basis and 2.8% operationally. Botox Cosmetic contributed $729 million, growing by 6.4% on a reported basis, while Juvederm revenues declined by 6.8% on a reported basis.

Financial Metrics and Full-Year Guidance

AbbVie’s gross margin ratio on a GAAP basis was 70.9%, with an adjusted gross margin of 85.2%. SG&A expenses accounted for 23.3% of net revenues on a GAAP basis, with adjusted SG&A at 22.9%. The company’s R&D expenses were 13.5% of net revenues on a GAAP basis and 13.3% on an adjusted basis. The operating margin stood at 27.6% on a GAAP basis, while the adjusted operating margin was 42.6%.

Highlights

• AbbVie reported Q2 2024 net revenues of $14.462 billion, up 4.3% on a reported basis.
• The company's Immunology portfolio generated $6.971 billion in global net revenues.
• Skyrizi and Rinvoq showed significant growth, with revenues increasing by 44.8% and 55.8%, respectively.
• AbbVie’s Oncology portfolio grew by 10.5% on a reported basis, with strong contributions from Venclexta.
• The Neuroscience portfolio's global net revenues increased by 14.7%, driven by Botox Therapeutic and Vraylar.
• The Aesthetics portfolio reported a slight increase in revenues, led by Botox Cosmetic.

Data source: https://news.abbvie.com/2024-07-25-AbbVie-Reports-Second-Quarter-2024-Financial-Results