NORTH CHICAGO, Ill., May 1, 2020 /PRNewswire/ --
AbbVie (NYSE:ABBV) announced financial results for the first
quarter ended March 31, 2020.
"During this challenging time, we are doing everything possible
to ensure our employees remain safe, our patients receive their
medicines and assistance is available to help those most deeply
impacted by the COVID-19 pandemic," said Richard A. Gonzalez, chairman and chief
executive officer, AbbVie. "Our business continues to perform
well and remains strong, which speaks volumes as to the robustness
of our portfolio and the commitment from our many dedicated
employees across the organization."
First-Quarter Results
- Worldwide net revenues were $8.619
billion, an increase of 10.1 percent on a reported basis, or
10.7 percent operationally, including a 240 basis point stocking
benefit related to the COVID-19 pandemic.
- Global HUMIRA net revenues of $4.703
billion increased 5.8 percent on a reported basis, or 6.4
percent operationally. U.S. HUMIRA net revenues were $3.656 billion, an increase of 13.7 percent.
Internationally, HUMIRA net revenues were $1.047 billion, a decrease of 14.9 percent on a
reported basis, or 12.8 percent operationally, due to biosimilar
competition.
- Global net revenues from the hematologic oncology portfolio
were $1.549 billion, an increase of
32.1 percent on a reported basis, or 32.3 percent operationally.
Global IMBRUVICA net revenues were $1.232
billion, an increase of 20.6 percent, with U.S. net revenues
of $966 million and international
profit sharing of $266 million.
Global VENCLEXTA net revenues were $317
million.
- Global SKYRIZI net revenues were $300
million and global RINVOQ net revenues were $86 million.
- On a GAAP basis, the gross margin ratio in the first quarter
was 77.5 percent. The adjusted gross margin ratio was 82.7
percent.
- On a GAAP basis, selling, general and administrative expense
was 19.7 percent of net revenues. The adjusted SG&A expense was
18.6 percent of net revenues.
- On a GAAP basis, research and development expense was 16.0
percent of net revenues. The adjusted R&D expense was 14.3
percent of net revenues, reflecting funding actions supporting all
stages of our pipeline.
- On a GAAP basis, the operating margin in the first quarter was
41.8 percent. The adjusted operating margin was 49.8 percent.
- On a GAAP basis, net interest expense was $428 million. The adjusted net interest expense
was $284 million.
- On a GAAP basis, the tax rate in the quarter was 2.8 percent.
The adjusted tax rate was 9.7 percent.
- Diluted EPS in the first quarter was $2.02 on a GAAP basis. Adjusted diluted EPS,
excluding specified items, was $2.42,
including a $0.09 stocking benefit
related to the COVID-19 pandemic.
Note: "Operational" comparisons are presented at constant
currency rates and reflect comparative local currency net revenues
at the prior year's foreign exchange rates.
Recent Events
- AbbVie announced a donation of $35
million to support COVID-19 relief efforts with partners
International Medical Corps, Direct Relief and Feeding America. In
the U.S., AbbVie's funds will be used to support healthcare
capacity for hospitals as well as protect vulnerable populations by
enabling access to food and essential supplies. In Europe, the donation will provide critical
equipment and supplies to patients and front-line healthcare
workers in the hardest-hit countries. Additionally, AbbVie is
doubling the AbbVie Foundation match for COVID-19-related
contributions by its employees, whereby the AbbVie Foundation will
match $2 to every $1 employees donate to a nonprofit for this
purpose.
- AbbVie is supporting COVID-19 clinical research by
collaborating with health authorities and institutions globally to
determine antiviral activity as well as efficacy and safety of
KALETRA/ALUVIA (lopinavir/ritonavir), AbbVie's antiretroviral
therapy for the treatment of HIV, against COVID-19. Collaboration
partners include European health authorities and the U.S. Food and
Drug Administration (FDA), Centers for Disease Control and
Prevention, National Institutes of Health and Biomedical Advanced
Research and Development Authority. Along with industry partners,
the company has joined the Innovative Medicines Initiative to
support research and discovery of targeted medicines against
COVID-19.
- AbbVie has initiated the Phase 2 iNSPIRE clinical trial to
evaluate the potential of IMBRUVICA (ibrutinib) to treat patients
with moderate to severe COVID-19. The trial will evaluate the role
of IMBRUVICA in preventing pro-inflammatory cytokines through
multiple pathways and reducing the risk of pulmonary failure, the
most common cause of mortality related to COVID-19 infection. The
study aims to determine the safety and efficacy of adding IMBRUVICA
to best supportive care in treating patients with COVID-19
pulmonary distress.
- AbbVie announced it received final approval from the European
Commission (EC) and has entered into a consent decree agreement
with staff of the U.S. Federal Trade Commission (FTC) regarding
AbbVie's pending acquisition of Allergan. The consent decree
remains subject to further review and approval by the Commissioners
of the FTC. AbbVie and Allergan anticipate deal closing in
May 2020.
- AbbVie announced the FDA approval of IMBRUVICA in combination
with rituximab for the treatment of previously untreated patients
with chronic lymphocytic leukemia (CLL) or small lymphocytic
lymphoma (SLL). The approval is based on positive results from the
landmark Phase 3 E1912 study, in which IMBRUVICA plus rituximab
demonstrated superior progression free survival (PFS) against the
chemoimmunotherapy regimen of fludarabine, cyclophosphamide and
rituximab (FCR) for previously untreated patients with CLL. This
milestone marks the 11th FDA approval for IMBRUVICA since it was
first approved in 2013 and the sixth in CLL. IMBRUVICA is jointly
developed and commercialized with Janssen Biotech, Inc.
- AbbVie announced that the EC has approved VENCLYXTO
(venetoclax) in combination with obinutuzumab for the treatment of
adult patients with CLL who were previously untreated. VENCLYXTO
plus obinutuzumab is the first chemotherapy-free, fixed-duration
combination regimen approved by the EC for patients with previously
untreated CLL. Approval is based on data from the Phase 3 CLL14
trial, which showed that patients treated with obinutuzumab plus
one year of treatment with VENCLYXTO had superior PFS and higher
rates of undetectable minimal residual disease compared to patients
receiving a standard of care chemoimmunotherapy regimen of
obinutuzumab and chlorambucil. 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.
- AbbVie announced results from two Phase 3 studies (VIALE-A and
VIALE-C) for VENCLEXTA (venetoclax) in patients with
previously-untreated acute myeloid leukemia (AML) who are
ineligible for intensive chemotherapy. The VIALE-A trial, which
evaluated VENCLEXTA in combination with azacitidine versus
azacitidine plus placebo, met its dual primary endpoints of overall
survival (OS) and composite complete remission rate. The VIALE-A
study was stopped early due to positive efficacy results at the
first interim analysis for OS. The VIALE-C trial, which evaluated
VENCLEXTA in combination with low-dose cytarabine (LDAC) versus
LDAC plus placebo, did not demonstrate statistically significant
improvement in the primary endpoint of OS, but results were
indicative of clinical activity of VENCLEXTA in combination with
LDAC. In November 2018, AbbVie
received accelerated approval in the U.S. for VENCLEXTA in
combination with azacitidine, decitabine, or LDAC for the treatment
of newly-diagnosed AML in adults who are age 75 years or older, or
who have comorbidities that preclude use of intensive induction
chemotherapy based on the Phase 1/2 studies. The results of VIALE-A
and VIALE-C will be provided to the FDA and submitted for
regulatory approval by other global health authorities later this
year.
- AbbVie announced that the EC has approved a change to the
marketing authorization for MAVIRET (glecaprevir/pibrentasvir) to
shorten once-daily treatment duration from 12 to 8 weeks in
treatment-naïve, compensated cirrhotic, chronic hepatitis C (HCV)
patients with genotype (GT) 3 infection. The decision makes MAVIRET
the only pan-genotypic (GTs 1-6) 8-week treatment option for
treatment-naïve, chronic HCV patients, without cirrhosis or with
compensated cirrhosis. The approval is supported by data from the
Phase 3b EXPEDITION-8 study, which
showed that with 8 weeks of MAVIRET, an overall 98 percent patients
achieved a sustained virologic response 12 weeks after treatment
(SVR12), and for patients with GT3, the SVR12 rate was over 95
percent.
Full-Year 2020 Outlook
AbbVie is updating its standalone GAAP diluted EPS guidance for
the full-year 2020 from $7.66 to
$7.76 to $7.60 to $7.70,
representing growth of 44.9 percent at the midpoint. AbbVie is
confirming the previous expectation to deliver standalone adjusted
diluted EPS for the full-year 2020 of $9.61 to $9.71,
representing growth of 8.1 percent at the midpoint. The company's
standalone 2020 adjusted diluted EPS guidance excludes $2.01 per share of intangible asset amortization
expense, non-cash charges for contingent consideration adjustments
and other specified items.
Statements Required by the Irish Takeover Rules
The directors of AbbVie accept responsibility for the
information contained in this announcement. To the best of the
knowledge and belief of the directors of AbbVie (who have taken all
reasonable care to ensure that such is the case), the information
contained in this announcement is in accordance with the facts and
does not omit anything likely to affect the import of such
information.
Any holder of 1 percent or more of any class of relevant
securities of AbbVie Inc. may have disclosure obligations under
Rule 8.3 of the Irish Takeover Panel Act, 1997, Takeover Rules
2013.
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 2020 and 2019 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 2020 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, including the impact of the COVID-19 pandemic on
AbbVie's operations, results and financial results, 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 possibility that the proposed
acquisition of Allergan will not be pursued, failure to obtain
necessary regulatory approvals or required financing or to satisfy
any of the other conditions to the proposed acquisition, failure to
realize the expected benefits of the proposed acquisition, failure
to promptly and effectively integrate Allergan's businesses,
significant transaction costs and/or unknown or inestimable
liabilities, potential litigation associated with the proposed
acquisition, 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 2019 Annual Report on Form 10-K, which has been filed with
the Securities and Exchange Commission (SEC). 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.
Profit Forecasts
AbbVie is updating its GAAP diluted EPS guidance for the
full-year 2020 from $7.66 to
$7.76 to $7.60 to $7.70,
representing growth of 44.9 percent at the midpoint.
AbbVie is confirming its adjusted diluted EPS guidance for the
full-year 2020 of $9.61 to
$9.71, representing growth of 8.1
percent at the midpoint.
AbbVie expects adjusted diluted EPS for the second quarter of
2020 of between $2.10 and
$2.16, excluding approximately
53 cents of non-cash amortization and
other specified items.
The guidance statements above regarding GAAP EPS and adjusted
EPS for the full-year 2020 and adjusted EPS for the second quarter
of 2020 each constitute a profit forecast for the purposes of the
Rule 28 of the Irish Takeover Rules.
The company will issue 2020 combined company guidance following
the close of the planned Allergan acquisition.
* Adjusted Earnings Per Share ("EPS") is a non-GAAP diluted
earnings per share, typically reported in AbbVie's quarterly and
annual financial results for the full year, guidance and in the
earnings calls for the next quarter guidance updates. This is not
prepared in accordance with U.S. GAAP. This non-GAAP financial
measure should not be considered in isolation from, as a substitute
for, or superior to financial measures prepared in accordance with
U.S. GAAP.
Adjusted EPS is calculated as net income excluding certain
non-cash items and factors which are unusual or unpredictable,
which include: amortization and impairment of intangible assets;
change in fair value of contingent consideration; major
restructuring costs, integration and other related transaction
costs relating to acquisitions; litigation reserves; R&D
milestones and acquired IPR&D, together with the tax effects of
all these items.
Basis of preparation
The AbbVie profit forecasts (the "Profit Forecasts") are
based on the unaudited interim financial results for the three
months ended March 31, 2020 and a
forecast of the results for the nine months to December 31, 2020.
In accordance with Rule 28 of the Irish Takeover Rules, the
directors of AbbVie confirm that the Profit Forecasts have been
properly compiled on the basis of the assumptions stated below on a
basis consistent with the accounting policies of AbbVie, which are
in accordance with U.S. GAAP and those which AbbVie anticipates
will be applicable for the full year ending December 31, 2020 (as adjusted for AbbVie
non-GAAP policy to disclose adjusted earnings excluding specified
items).
The AbbVie non-GAAP profit forecast does not include the
proposed acquisition of Allergan. However, the AbbVie GAAP profit
forecast includes estimated one-time expenses relating to the
transaction such as financing costs, legal, consultants,
accountants, regulatory and other fees, which are expected to be
incurred in 2020.
Principal assumptions
The Profit Forecasts have been compiled on the basis of the
following assumptions:
Assumptions which are within AbbVie's influence or
control:
- Executed licensing and partnership collaboration transaction
impacts and transactions expected to be executed in the next
quarter are included. In line with AbbVie's historical practices,
management continues to evaluate and pursue opportunities for
further partnership collaborations and in-licensing transactions.
No material acquisitions or disposals are anticipated in 2020;
- There will be no material change in the operational strategy or
current management of AbbVie during the year ending December 31, 2020 other than those already
announced;
- There will be no major site closures or rationalization during
the nine-month forecast period to December
31, 2020.
- Share repurchases and issuances are expected to be relatively
flat during the nine-month forecast period to December 31, 2020.
Assumptions which are outside of AbbVie's influence or
control:
- There will be no material supply chain, manufacturing and
distribution disruptions and other business interruptions,
including natural disasters or industrial disputes;
- There will be no material adverse events that affect AbbVie's
key products, including adverse regulatory and clinical findings or
publications, product recalls, liability claims, or loss of patent
protection;
- There will be no material changes to current litigation
provisions due to a new or ongoing litigation claim;
- There will be no material change in general market, economic,
competitive environments or levels of demand in countries in which
AbbVie operates that would materially affect AbbVie's
business;
- There will be no material change to AbbVie customers'
agreements, rebates, or discount programs from those currently
prevailing;
- With respect to COVID-19 that: "stay at home" orders will be
gradually lifted, starting in May, across Europe and the
United States; over the subsequent 60 days, physicians'
offices and hospitals will reopen for more routine patient
diagnosis and care; and patients will start returning to
physician offices for routine treatment in that timeframe. An
increase to AbbVie's patient assistance programs, as well as a
shifts in the U.S. payor mix due to increased unemployment has also
been factored in.
- There will be no changes in exchange rates, interest rates,
bases of taxes, tax laws or interpretations, or legislative or
regulatory requirements from those currently prevailing that would
have a material impact on AbbVie's operations or its accounting
policies;
- There will be no material change to discount rate assumptions
for calculating the fair value of contingent consideration from
those currently prevailing; and
- There will be no intangible asset impairments due to
unfavorable clinical study results or safety signals.
AbbVie
Inc.
Key Product
Revenues
Quarter Ended
March 31, 2020
(Unaudited)
|
|
|
|
|
|
|
|
|
% Change vs.
1Q19
|
|
Net Revenues (in
millions)
|
|
|
|
International
|
Total
|
|
U.S.
|
|
Int'l.
|
|
Total
|
|
U.S.
|
|
Operational
|
|
Reported
|
Operational
|
|
Reported
|
ADJUSTED NET
REVENUESa
|
$6,158
|
|
$2,461
|
|
$8,619
|
|
16.8%
|
|
(2.0)%
|
|
(3.8)%
|
10.7%
|
|
10.1%
|
Immunology
|
4,004
|
|
1,085
|
|
5,089
|
|
24.5
|
|
(9.7)
|
|
(11.8)
|
15.1
|
|
14.5
|
Humira
|
3,656
|
|
1,047
|
|
4,703
|
|
13.7
|
|
(12.8)
|
|
(14.9)
|
6.4
|
|
5.8
|
Skyrizi
|
266
|
|
34
|
|
300
|
|
n/m
|
|
n/m
|
|
n/m
|
n/m
|
|
n/m
|
Rinvoq
|
82
|
|
4
|
|
86
|
|
n/m
|
|
n/m
|
|
n/m
|
n/m
|
|
n/m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hematologic
Oncology
|
1,167
|
|
382
|
|
1,549
|
|
25.0
|
|
61.1
|
|
59.9
|
32.3
|
|
32.1
|
Imbruvicab
|
966
|
|
266
|
|
1,232
|
|
16.6
|
|
37.9
|
|
37.9
|
20.6
|
|
20.6
|
Venclexta
|
201
|
|
116
|
|
317
|
|
91.5
|
|
>100.0
|
|
>100.0
|
>100.0
|
|
>100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HCV
|
234
|
|
330
|
|
564
|
|
(41.9)
|
|
(18.8)
|
|
(20.0)
|
(30.2)
|
|
(30.8)
|
Mavyret
|
234
|
|
325
|
|
559
|
|
(42.0)
|
|
(14.7)
|
|
(16.0)
|
(28.6)
|
|
(29.2)
|
Viekira
|
—
|
|
5
|
|
5
|
|
n/m
|
|
(80.6)
|
|
(81.2)
|
(80.3)
|
|
(80.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Key
Products
|
769
|
|
543
|
|
1,312
|
|
3.9
|
|
0.2
|
|
(1.8)
|
2.4
|
|
1.5
|
Creon
|
276
|
|
—
|
|
276
|
|
21.9
|
|
n/a
|
|
n/a
|
21.9
|
|
21.9
|
Lupron
|
195
|
|
38
|
|
233
|
|
2.1
|
|
2.1
|
|
(0.3)
|
2.1
|
|
1.7
|
Synthroid
|
205
|
|
—
|
|
205
|
|
12.3
|
|
n/a
|
|
n/a
|
12.3
|
|
12.3
|
Synagis
|
—
|
|
270
|
|
270
|
|
n/a
|
|
(4.1)
|
|
(5.6)
|
(4.1)
|
|
(5.6)
|
Duodopa
|
25
|
|
99
|
|
124
|
|
10.2
|
|
14.9
|
|
12.0
|
14.0
|
|
11.7
|
Sevoflurane
|
16
|
|
63
|
|
79
|
|
(6.1)
|
|
(13.5)
|
|
(15.8)
|
(12.2)
|
|
(14.0)
|
Kaletra
|
14
|
|
72
|
|
86
|
|
3.2
|
|
13.1
|
|
10.8
|
11.4
|
|
9.5
|
Orilissa
|
30
|
|
1
|
|
31
|
|
>100.0
|
|
>100.0
|
|
>100.0
|
>100.0
|
|
>100.0
|
AndroGel
|
8
|
|
—
|
|
8
|
|
(89.1)
|
|
n/a
|
|
n/a
|
(89.1)
|
|
(89.1)
|
|
|
Note: "Operational"
comparisons are presented at constant currency rates and reflect
comparative local currency net revenues at the prior year's foreign
exchange rates.
|
|
n/a = not
applicable
|
n/m = not
meaningful
|
|
|
a
|
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.
|
b
|
Reflects profit
sharing for Imbruvica international revenues.
|
AbbVie
Inc.
Consolidated
Statements of Earnings
Quarter Ended
March 31, 2020 and 2019
(Unaudited) (In
millions, except per share data)
|
|
|
First Quarter
Ended March 31
|
|
2020
|
|
2019
|
Net
revenues
|
$
|
8,619
|
|
|
$
|
7,828
|
|
Cost of products
sold
|
1,942
|
|
|
1,694
|
|
Selling, general and
administrative
|
1,695
|
|
|
1,680
|
|
Research and
development
|
1,379
|
|
|
1,289
|
|
Acquired in-process
research and development
|
—
|
|
|
155
|
|
Total operating costs
and expenses
|
5,016
|
|
|
4,818
|
|
|
|
|
|
Operating
earnings
|
3,603
|
|
|
3,010
|
|
|
|
|
|
Interest expense,
net
|
428
|
|
|
325
|
|
Net foreign exchange
loss
|
5
|
|
|
6
|
|
Other expense,
net
|
72
|
|
|
135
|
|
Earnings before
income tax expense
|
3,098
|
|
|
2,544
|
|
Income tax
expense
|
88
|
|
|
88
|
|
Net
earnings
|
$
|
3,010
|
|
|
$
|
2,456
|
|
|
|
|
|
Diluted earnings per
share
|
$
|
2.02
|
|
|
$
|
1.65
|
|
|
|
|
|
Adjusted diluted
earnings per sharea
|
$
|
2.42
|
|
|
$
|
2.14
|
|
|
|
|
|
Weighted-average
diluted shares outstanding
|
1,484
|
|
|
1,483
|
|
|
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, 2020
|
(Unaudited) (In
millions, except per share data)
|
|
1. Specified items
impacted results as follows:
|
|
|
1Q20
|
|
Earnings
|
|
Diluted
|
|
Pre-tax
|
|
After-tax
|
|
EPS
|
As reported
(GAAP)
|
$
|
3,098
|
|
|
$
|
3,010
|
|
|
$
|
2.02
|
|
Adjusted for
specified items:
|
|
|
|
|
|
Intangible asset
amortization
|
444
|
|
|
371
|
|
|
0.24
|
|
Acquisition related
costs
|
188
|
|
|
158
|
|
|
0.11
|
|
Milestones and other
R&D expenses
|
135
|
|
|
115
|
|
|
0.08
|
|
Change in fair value
of contingent consideration
|
72
|
|
|
72
|
|
|
0.05
|
|
Other
|
66
|
|
|
(113)
|
|
|
(0.08)
|
|
As adjusted
(non-GAAP)
|
$
|
4,003
|
|
|
$
|
3,613
|
|
|
$
|
2.42
|
|
|
Acquisition related
costs reflect transaction and financing costs related to the
proposed 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. Other primarily includes the impacts of tax law
changes, charitable contributions to support COVID-19 relief
efforts and restructuring charges associated with streamlining
global operations.
|
|
2.
The impact of the specified items by line item
was as follows:
|
|
|
1Q20
|
|
Cost of
products
sold
|
|
SG&A
|
|
R&D
|
|
Interest
expense,
net
|
|
Other
expense,
net
|
As reported
(GAAP)
|
$
|
1,942
|
|
|
$
|
1,695
|
|
|
$
|
1,379
|
|
|
$
|
428
|
|
|
$
|
72
|
|
Adjusted for
specified items:
|
|
|
|
|
|
|
|
|
|
Intangible asset
amortization
|
(444)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Acquisition related
costs
|
—
|
|
|
(44)
|
|
|
—
|
|
|
(144)
|
|
|
—
|
|
Milestones and other
R&D expenses
|
—
|
|
|
—
|
|
|
(135)
|
|
|
—
|
|
|
—
|
|
Change in fair value
of contingent consideration
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(72)
|
|
Other
|
(4)
|
|
|
(52)
|
|
|
(10)
|
|
|
—
|
|
|
—
|
|
As
adjusted (non-GAAP)
|
$
|
1,494
|
|
|
$
|
1,599
|
|
|
$
|
1,234
|
|
|
$
|
284
|
|
|
$
|
—
|
|
|
3.
The adjusted tax rate for the first quarter
of 2020 was 9.7 percent, as detailed below:
|
|
|
1Q20
|
|
Pre-tax
earnings
|
|
Income
taxes
|
|
Tax rate
|
As reported
(GAAP)
|
$
|
3,098
|
|
|
$
|
88
|
|
|
2.8
|
%
|
Specified
items
|
905
|
|
|
302
|
|
|
33.4
|
%
|
As
adjusted (non-GAAP)
|
$
|
4,003
|
|
|
$
|
390
|
|
|
9.7
|
%
|
AbbVie
Inc.
Reconciliation of
GAAP Reported to Non-GAAP Adjusted Information
Quarter Ended
March 31, 2019
(Unaudited) (In
millions, except per share data)
|
|
1. Specified items
impacted results as follows:
|
|
|
1Q19
|
|
Earnings
|
|
Diluted
|
|
Pre-tax
|
|
After-tax
|
|
EPS
|
As reported
(GAAP)
|
$
|
2,544
|
|
|
$
|
2,456
|
|
|
$
|
1.65
|
|
Adjusted for
specified items:
|
|
|
|
|
|
Intangible asset
amortization
|
385
|
|
|
318
|
|
|
0.21
|
|
Milestones and other
R&D expenses
|
40
|
|
|
40
|
|
|
0.03
|
|
Acquired
IPR&D
|
155
|
|
|
155
|
|
|
0.10
|
|
Change in fair value
of contingent consideration
|
169
|
|
|
171
|
|
|
0.12
|
|
Restructuring
|
163
|
|
|
133
|
|
|
0.09
|
|
Litigation
reserves
|
10
|
|
|
8
|
|
|
—
|
|
Tax audit
settlement
|
—
|
|
|
(89)
|
|
|
(0.06)
|
|
As adjusted
(non-GAAP)
|
$
|
3,466
|
|
|
$
|
3,192
|
|
|
$
|
2.14
|
|
|
Milestones and other
R&D expenses are associated with milestone payments for
previously announced collaborations. Acquired IPR&D primarily
reflects upfront payments related to R&D collaborations and
licensing arrangements with third parties. Restructuring is
primarily associated with streamlining global
operations.
|
|
2.
The impact of the specified items by line item
was as follows:
|
|
|
1Q19
|
|
Cost of
products
sold
|
|
SG&A
|
|
R&D
|
|
Acquired
IPR&D
|
|
Other
expense,
net
|
As reported
(GAAP)
|
$
|
1,694
|
|
|
$
|
1,680
|
|
|
$
|
1,289
|
|
|
$
|
155
|
|
|
$
|
135
|
|
Adjusted for
specified items:
|
|
|
|
|
|
|
|
|
|
Intangible asset
amortization
|
(385)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Milestones and other
R&D expenses
|
—
|
|
|
—
|
|
|
(40)
|
|
|
—
|
|
|
—
|
|
Acquired
IPR&D
|
—
|
|
|
—
|
|
|
—
|
|
|
(155)
|
|
|
—
|
|
Change in fair value
of contingent consideration
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(169)
|
|
Restructuring
|
(6)
|
|
|
(107)
|
|
|
(50)
|
|
|
—
|
|
|
—
|
|
Litigation
reserves
|
—
|
|
|
(10)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
As
adjusted (non-GAAP)
|
$
|
1,303
|
|
|
$
|
1,563
|
|
|
$
|
1,199
|
|
|
$
|
—
|
|
|
$
|
(34)
|
|
|
3.
The adjusted tax rate for the first quarter
of 2019 was 7.9 percent, as detailed below:
|
|
|
1Q19
|
|
Pre-tax
earnings
|
|
Income
taxes
|
|
Tax rate
|
As reported
(GAAP)
|
$
|
2,544
|
|
|
$
|
88
|
|
|
3.5
|
%
|
Specified
items
|
922
|
|
|
186
|
|
|
20.2
|
%
|
As
adjusted (non-GAAP)
|
$
|
3,466
|
|
|
$
|
274
|
|
|
7.9
|
%
|
View original
content:http://www.prnewswire.com/news-releases/abbvie-reports-first-quarter-2020-financial-results-301050918.html
SOURCE AbbVie