NORTH CHICAGO, Illinois, April 27, 2017 /PRNewswire/ --
- Reports First-Quarter Diluted EPS of $1.06 on a GAAP Basis; Adjusted Diluted EPS of $1.28, Reflecting Growth of 11.3 Percent
- Delivers First-Quarter Net Revenues of $6.538 Billion on a GAAP Basis, Reflecting Growth of 10.1 Percent on an Operational Basis
- First-Quarter Global Humira Sales of $4.118 Billion Increased 15.1 Percent on a Reported Basis, or 15.8 Percent on an Operational Basis; First-Quarter U.S. Humira Sales of $2.696 Billion Increased 22.8 Percent
- First-Quarter Global IMBRUVICA Net Revenues Were $551 Million, an Increase of 44.7 Percent
- Confirms 2017 GAAP Diluted EPS Guidance Range of $4.55 to $4.65; 2017 Adjusted Diluted EPS Guidance Range of $5.44 to $5.54, Representing Growth of 13.9 Percent at the Midpoint
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#Begin release #Begin Wide Release
AbbVie (NYSE:ABBV) announced financial results for the first quarter ended March 31, 2017.
"AbbVie delivered strong first quarter results, with double-digit EPS and operational revenue growth, exceeding our guidance for the quarter," said Richard A. Gonzalez, chairman and chief executive officer, AbbVie. "As we look ahead to the remainder of the year we expect continued strong commercial execution and significant pipeline progress. This includes a dozen pivotal trial read-outs and several regulatory submissions and approvals, further supporting our ability to drive top-tier performance over the long term. 2017 is an important year for AbbVie and we are off to an excellent start."
First-Quarter Results
Key Events from the First Quarter
Full-Year 2017 Outlook
AbbVie is confirming its GAAP diluted EPS guidance for the full-year 2017 of $4.55 to $4.65. AbbVie expects to deliver adjusted diluted EPS for the full-year 2017 of $5.44 to $5.54, representing growth of 13.9 percent at the mid-point. The company's 2017 adjusted diluted EPS guidance excludes $0.89 per share of intangible asset amortization expense and other specified items.
About AbbVie
AbbVie is a global, research-driven biopharmaceutical company committed to developing innovative advanced therapies for some of the world's most complex and critical conditions. The company's mission is to use its expertise, dedicated people and unique approach to innovation to markedly improve treatments across four primary therapeutic areas: immunology, oncology, virology and neuroscience. In more than 75 countries, AbbVie employees are working every day to advance health solutions for people around the world. For more information about AbbVie, please visit us at www.abbvie.com. Follow @abbvie on Twitter, Facebook or LinkedIn.
Conference Call
AbbVie will host an investor conference call today at 8:00 a.m. Central time to discuss our first-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 2017 and 2016 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 2017 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, 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 2016 Annual Report on Form 10-K, which has been filed with the Securities and Exchange Commission. 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 March 31, 2017
(Unaudited)
Net Revenues (in millions)
U.S. Int'l. Total
NET
REVENUES $4,052 $2,486 $6,538
Humira 2,696 1,422 4,118
Imbruvica[a] 457 94 551
Viekira 38 225 263
Lupron 155 39 194
Creon 185 - 185
Synagis - 300 300
Synthroid 192 - 192
AndroGel 136 - 136
Kaletra 19 96 115
Sevoflurane 18 89 107
Duodopa 14 66 80
Table continues below
% Change vs. 1Q16 International Total U.S. Operational Reported Operational Reported NET REVENUES 15.9% 1.8% 0.9% 10.1% 9.7% Humira 22.8 4.6 2.9 15.8 15.1 Imbruvica[a] 40.7 68.0 68.0 44.7 44.7 Viekira (69.6) (20.8) (21.9) (35.5) (36.3) Lupron 1.9 (0.2) 1.2 1.4 1.7 Creon 22.8 n/a n/a 22.8 22.8 Synagis n/a (8.2) (5.9) (8.2) (5.9) Synthroid 5.7 n/a n/a 5.7 5.7 AndroGel (12.8) n/a n/a (12.8) (12.8) Kaletra (41.8) (6.4) (4.4) (15.1) (13.6) Sevoflurane 0.7 (3.0) (4.9) (2.4) (4.0) Duodopa 84.6 12.0 8.9 19.8 17.0
Note: "Operational" growth reflects the percentage change over the prior year
excluding the impact of exchange rate fluctuations.
n/a = not applicable
[a] Reflects profit sharing for Imbruvica international revenues.
AbbVie Inc.
Consolidated Statements of Earnings
Quarter Ended March 31, 2017 and 2016
(Unaudited) (In millions, except per share data)
First Quarter
Ended March 31
2017 2016
Net revenues $ 6,538 $ 5,958
Cost of products sold 1,616 1,369
Selling, general and administrative 1,368 1,355
Research and development 1,135 946
Acquired in-process research and development - 10
Total operating cost and expenses 4,119 3,680
Operating earnings 2,419 2,278
Interest expense, net 247 200
Net foreign exchange loss 13 302
Other expense, net 73 -
Earnings before income tax expense 2,086 1,776
Income tax expense 375 422
Net earnings $ 1,711 $ 1,354
Diluted earnings per share $ 1.06 $ 0.83
Adjusted diluted earnings per share[a] $ 1.28 $ 1.15
Weighted-average diluted shares outstanding 1,603 1,625
[a] Refer to the Reconciliation of GAAP Reported to Non-GAAP Adjusted Information
for further details.
AbbVie Inc.
Reconciliation of GAAP Reported to Non-GAAP Adjusted Information
Quarter Ended March 31, 2017
(Unaudited) (In millions, except per share data)
1. Specified items impacted results as follows:
1Q17
Earnings Diluted
Pre-tax After-tax EPS
As reported (GAAP) $ 2,086 $ 1,711 $ 1.06
Adjusted for specified items:
Intangible asset amortization 271 203 0.13
Milestones and other R&D expenses 28 28 0.02
Acquisition related costs 38 25 0.01
Change in fair value of
contingent consideration 85 84 0.06
Other 10 9 -
As adjusted (non-GAAP) $ 2,518 $ 2,060 $ 1.28
Milestones and other R&D expenses are associated with milestone
payments for previously announced collaborations. Acquisition
related costs primarily include the amortization of the
acquisition date fair value step-up for inventory related to the
acquisition of Pharmacyclics. Other primarily includes
restructuring charges associated with streamlining global
operations.
2. The impact of the specified items by line item was as follows:
1Q17
Other
Cost of expense
products sold SG&A R&D (income), net
As reported (GAAP) $ 1,616 $ 1,368 $ 1,135 $ 73
Adjusted for specified items:
Intangible asset amortization (271) - - -
Milestones and other R&D
expenses - - (28) -
Acquisition related costs (26) (9) (2) (1)
Change in fair value of
contingent consideration - - - (85)
Other (6) (4) - -
As adjusted (non-GAAP) $ 1,313 $ 1,355 $ 1,105 $ (13)
3. The adjusted tax rate for the first quarter of 2017 was 18.2 percent, as
detailed below:
1Q17
Pre-tax Income
income taxes Tax rate
As reported (GAAP) $ 2,086 $ 375 18.0 %
Specified items 432 83 19.2 %
As adjusted (non-GAAP) $ 2,518 $ 458 18.2 %
AbbVie Inc.
Reconciliation of GAAP Reported to Non-GAAP Adjusted Information
Quarter Ended March 31, 2016
(Unaudited) (In millions, except per share data)
1. Specified items impacted results as follows:
1Q16
Earnings Diluted
Pre-tax After-tax EPS
As reported (GAAP) $ 1,776 $ 1,354 $ 0.83
Adjusted for specified items:
Intangible asset amortization 165 133 0.08
Acquisition related costs 57 35 0.02
Venezuela devaluation loss 298 298 0.18
Other 67 54 0.04
As adjusted (non-GAAP) $ 2,363 $ 1,874 $ 1.15
Acquisition related costs reflect the amortization of the
acquisition date fair value step-up for inventory as well as
integration and other costs related to the acquisition of
Pharmacyclics. Other is primarily associated with the impairment
of an intangible asset and a milestone payment for a previously
announced collaboration.
2. The impact of the specified items by line item was as follows:
1Q16
Net
Cost of foreign
products Acquired exchange
sold SG&A R&D IPR&D loss
As reported (GAAP) $ 1,369 $ 1,355 $ 946 $ 10 $ 302
Adjusted for specified items:
Intangible asset amortization (165) - - - -
Acquisition related costs (45) (4) (8) - -
Venezuela devaluation loss - - - - (298)
Other (44) (4) (9) (10) -
As adjusted (non-GAAP) $ 1,115 $ 1,347 $ 929 $ - $ 4
3. The adjusted tax rate for the first quarter of 2016 was 20.7 percent, as
detailed below:
1Q16
Pre-tax Income
income taxes Tax rate
As reported (GAAP) $ 1,776 $ 422 23.7 %
Specified items 587 67 11.4 %
As adjusted (non-GAAP) $ 2,363 $ 489 20.7 %
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CONTACT: Media: Adelle Infante, (847) 938-8745, Investors: Liz Shea, (847) 935-2211, Sharon Greenlees, (847) 935-0900, Todd Bosse, (847) 936-1182
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