AbbVie Announces Q2 2024 Financial Results

AbbVie has reported its financial outcomes for the second quarter ending June 30, 2024. The company announced a second-quarter diluted EPS (earnings per share) of $0.77 on a GAAP basis, marking a 32.5% reduction. The adjusted diluted EPS was $2.65, indicating a decrease of 8.9%. These figures include an unfavorable impact of $0.52 per share related to acquired in-process research and development (IPR&D) and milestones expenses.

The company achieved second-quarter net revenues of $14.462 billion, increasing by 4.3% on a reported basis and 5.6% on an operational basis. Among the different portfolios, the immunology segment generated global net revenues of $6.971 billion, showing a 2.3% rise on a reported basis and 3.5% on an operational basis. Within this segment, the global revenues of Humira were $2.814 billion, while Skyrizi and Rinvoq posted revenues of $2.727 billion and $1.430 billion, respectively.

AbbVie's oncology portfolio garnered global net revenues of $1.634 billion, reflecting a 10.5% rise on a reported basis and 12.2% on an operational basis. Imbruvica's global net revenues were $833 million, and Venclexta's reached $637 million. The neuroscience portfolio recorded global net revenues of $2.162 billion, a 14.7% increase on a reported basis or 15.2% operationally. Notable figures in this segment include Botox Therapeutic with $814 million and Vraylar with $774 million.

The aesthetics portfolio saw global net revenues of $1.390 billion, marking a 0.5% increase on a reported basis and 2.8% operationally. Among these, Botox Cosmetic achieved revenues of $729 million, and Juvederm reported $343 million.

AbbVie also raised its 2024 adjusted diluted EPS guidance range to $10.71 - $10.91, factoring in an unfavorable impact of $0.60 per share from acquired IPR&D and milestones expenses incurred through the second quarter of 2024.

CEO Robert A. Michael expressed confidence in AbbVie’s performance, highlighting the company’s robust position due to the momentum of its ex-Humira growth platform, ongoing business investments, and pipeline advancements.

From the operational perspective, the gross margin ratio for the quarter was 70.9% on a GAAP basis and 85.2% on an adjusted basis. Selling, general, and administrative (SG&A) expenses were 23.3% of net revenues on a GAAP basis and 22.9% on an adjusted basis. Research and development (R&D) expenses stood at 13.5% of net revenues on a GAAP basis and 13.3% on an adjusted basis, with acquired IPR&D and milestones expenses constituting 6.5%.

The company reported an operating margin of 27.6% on a GAAP basis and 42.6% on an adjusted basis. Net interest expense was $506 million. The GAAP tax rate for the quarter was 36.0%, while the adjusted tax rate was 18.8%.

Recent organizational shifts were also highlighted, with Robert A. Michael assuming the CEO role and joining the Board of Directors, succeeding Richard A. Gonzalez, who took on the position of executive chairman of the board.

Key regulatory approvals and submissions were noted, including FDA approval for Skyrizi for ulcerative colitis and positive opinions from the European Medicines Agency (EMA). The company also submitted new indication applications for Rinvoq for giant cell arteritis. In the realm of acquisitions and collaborations, AbbVie completed its acquisition of Landos Biopharma and Celsius Therapeutics, strengthening its pipeline in inflammatory and oncology treatments.

AbbVie also showcased significant trial data at various medical conferences, reinforcing its commitment to advancing treatment standards across multiple therapeutic areas, particularly in immunology and oncology.

Overall, AbbVie’s second-quarter performance underscores its strategic growth and sustained investments in research and development, positioning it well for future advancements and market leadership.