Hyaluronic acid

Q2 reported revenue of $147.7 million declined 2.4%; Organic* revenue advanced 6.2%Second quarter diluted earnings per share was $0.11 compared to a diluted loss per share of $0.40 in the prior-year periodNon-GAAP earnings* of $0.21 per share increased 31%Cash from operations of $25.9 million increased 71%Company reiterated revenue, Adjusted EBITDA* and Non-GAAP EPS* guidance for full year 2025 DURHAM, N.C., Aug. 06, 2025 (GLOBE NEWSWIRE) -- Bioventus Inc. (Nasdaq: BVS) ("Bioventus" or the "Company"), a global leader in innovations for active healing, today reported financial results for the three and six months ended June 28, 2025. “Our team delivered another strong quarter, and we are well positioned to accelerate revenue growth, profitability and cash flow in the second half of the year,” said Rob Claypoole, Bioventus President and Chief Executive Officer. “The recent FDA clearance of both TalisMann and StimTrial for the treatment of chronic peripheral nerve pain creates another exciting growth driver for Bioventus and further strengthens our ability to deliver long-term shareholder value.” Second Quarter 2025 Financial Results: For the second quarter, worldwide revenue of $147.7 million declined 2.4% from $151.2 million in the prior-year period. This performance reflects the impact from the prior-year divestiture of the Advanced Rehabilitation Business. Organic* revenue increased 6.2% as a result of double digit organic* growth across Surgical Solutions and Restorative Therapies exhibiting the strength of the Company's diverse portfolio. Net income attributable to Bioventus Inc. of $7.5 million compared to a net loss attributable to Bioventus Inc. of $25.7 million in the prior-year period. Adjusted EBITDA* of $33.8 million was lower than the prior-year period Adjusted EBITDA* of $34.5 million due to the impact of the divestiture of the Advanced Rehabilitation Business and the unplanned impact of foreign currency. Diluted earnings per share of Class A common stock was $0.11 per share, compared to a loss of $0.40 per share in the prior-year period. Non-GAAP earnings per share of Class A common stock* was $0.21 per share, reflecting an increase of 31% from $0.16 per share in the prior-year period driven by lower interest expense and lower equity-based compensation. Revenue By Business The following tables represent net sales by business and geographic region for the three months ended June 28, 2025 and June 29, 2024: Three Months Ended Change as Reported ConstantCurrency*Change(in thousands, except for percentage)June 28, 2025 June 29, 2024 $ % %Pain treatments$73,308 $72,260 $1,048 1.5 % 1.3 %Surgical solutions 52,716 47,337 5,379 11.4 % 11.2 %Restorative therapies(a) 21,636 31,620 (9,984) (31.6)% (31.9)%Total net sales$147,660 $151,217 $(3,557) (2.4)% (2.6)% (a) Global revenue from the Advanced Rehabilitation Business totaled $205 and $12,343 for the three months ended June 28, 2025 and June 29, 2024, respectively. Pain Treatments: Global revenue of $73.3 million increased 1.5% due to strong growth in demand for Durolane, a differentiated, single-injection hyaluronic acid therapy for knee osteoarthritis, partially offset by lower average selling prices due to a challenging comparison to the prior year. Surgical Solutions: Global revenue of $52.7 million increased 11.4% driven by growth in Ultrasonics as a result of strong volume in the U.S. from increased awareness of the technology’s value proposition and adoption in the market. Restorative Therapies: Global revenue of $21.6 million decreased 31.6% reflecting the Company’s divestiture of its Advanced Rehabilitation Business at the end of 2024. On an organic* basis, revenue grew 11.2% driven by improvement in commercial effectiveness and sales force execution with the EXOGEN Bone Stimulation System. Three Months Ended Change as Reported Constant Currency* Change(in thousands, except for percentage)June 28, 2025 June 29, 2024 $ % %U.S. Pain Treatments$64,436 $65,194 $(758) (1.2%) (1.2%)Surgical Solutions 45,747 41,780 3,967 9.5% 9.5%Restorative Therapies(b) 18,592 27,435 (8,843) (32.2%) (32.2%)Total U.S. net sales 128,775 134,409 (5,634) (4.2%) (4.2%)International Pain Treatments 8,872 7,066 1,806 25.6% 23.4%Surgical Solutions 6,969 5,557 1,412 25.4% 23.9%Restorative Therapies(b) 3,044 4,185 (1,141) (27.3%) (30.0%)Total International net sales 18,885 16,808 2,077 12.4% 10.0%Total net sales$147,660 $151,217 $(3,557) (2.4%) (2.6%) (b) U.S. revenue from the Advanced Rehabilitation Business totaled $205 and $10,761 for the three months ended June 28, 2025 and June 29, 2024, respectively. International revenue from the Advanced Rehabilitation Business totaled $1,582 for the three months ended June 29, 2024. U.S.: Revenue of $128.8 million decreased 4.2% reflecting the Company's divestiture of its Advanced Rehabilitation Business at the end of 2024. Organic* revenue grew 4.0% driven by double-digit organic* growth in Surgical Solutions and Restorative Therapies. International: Revenue of $18.9 million increased 12.4% due to an increase in demand across Pain Treatments and Surgical Solutions, partially offset by the divestiture of the Advanced Rehabilitation Business. Organic* revenue grew 24.0%. Recent Business Highlights Bioventus continues to advance its strategic priorities with key achievements, including the following: Obtained FDA 510(k) clearance for TalisMann, an innovative Peripheral Nerve Stimulation (PNS) system engineered to deliver long-term relief from chronic nerve pain, in July 2025. This technology creates a powerful combination of an electrical field conduction and an integrated pulse generator to potentially reach deeper, larger nerves to provide long-term relief from chronic nerve pain for patients.Obtained FDA 510(k) clearance for StimTrial, which provides physicians the ability to evaluate a patient’s response to PNS therapy before proceeding with a permanent implant, in July 2025. With an expected total addressable market of approximately $2 billion in the U.S., the combination of TalisMann and StimTrial represents an exciting expansion opportunity to advance non-opioid, minimally invasive solutions for chronic pain management.Entered into a new Credit Agreement on July 31, 2025 for a $300 million term loan and $100 million revolving credit facility, which provides over $2 million of annual interest expense savings, increased liquidity and debt maturity extension to July 2030.Recognized as one of the Best Companies to Work For in North Carolina in 2025 by U.S. News & World Report reflecting advancements in our company and employee engagement. 2025 Financial Guidance: Bioventus reiterated its 2025 Financial Guidance provided on May 6, 2025, including an estimated impact of tariffs, which is immaterial at this time. For the twelve months ending December 31, 2025, the Company continues to expect: Net sales of $560 million to $570 million. This reflects organic* growth of approximately 6.1% to 8.0% when including the impact of the Company's divestiture of its Advanced Rehabilitation Business, which generated revenue of $45.4 million in 2024.Adjusted EBITDA* of $112 million to $116 million, reflecting 100 basis points in Adjusted EBITDA Margin* growth compared to the 2024 Adjusted EBITDA Margin* of 19.0% when using the low end of the 2025 revenue and Adjusted EBITDA* guidance. The guidance assumes the Company will continue to successfully offset the combined $5 million related to foreign exchange expense, which occurred throughout the first half of the year, and the full year expected impact of current tariffs. The guidance does not assume additional impact from U.S. dollar fluctuation in the second half of the year.Non-GAAP EPS* of $0.64 to $0.68, reflecting an increase of 30.6% to 38.8%. The Company does not provide U.S. GAAP financial measures, other than net sales, on a forward-looking basis, because the Company is unable to predict with reasonable certainty the impact and timing of acquisition and divestiture related expenses, accounting fair-value adjustments, and certain other reconciling items without unreasonable efforts. These items are uncertain, depend on various factors, and could be material to the Company’s results computed in accordance with U.S. GAAP. *See below under “Use of Non-GAAP Financial Measures” for more details. About Bioventus Bioventus delivers clinically proven, cost-effective products that help people heal quickly and safely. Its mission is to make a difference by helping patients resume and enjoy active lives. The Innovations for Active Healing from Bioventus include offerings for Pain Treatments, Surgical Solutions and Restorative Therapies. Built on a commitment to high quality standards, evidence-based medicine and strong ethical behavior, Bioventus is a trusted partner for physicians worldwide. For more information, visit www.bioventus.com and follow the Company on LinkedIn and Twitter. Bioventus and the Bioventus logo are registered trademarks of Bioventus LLC. Second Quarter 2025 Earnings Conference Call: Management will host a conference call to discuss the Company’s financial results and provide a business update, with a question and answer session, at 8:30 a.m. Eastern Time on August 6, 2025. Those who would like to participate in the conference call may, dial 1-800-715-9871 (domestic or international) and refer to either the Bioventus Inc. Conference Call or the conference ID 1859022. A live webcast of the call and any accompanying materials will also be provided on the investor relations section of the Company's website at https://ir.bioventus.com/. The webcast will be archived on the Company’s website at https://ir.bioventus.com/ and available for replay until August 5, 2026. Legal Notice Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements concerning our future financial results and liquidity; our business strategy, including, without limitation, the impact of the divestiture of our Advanced Rehabilitation Business and impact of our new credit facility on our financial condition and operations; the effect of regulatory approvals; our ability to commercialize our products and timeframe; sales trends; estimated market opportunities, position and growth. In some cases, you can identify forward-looking statements by terminology such as “aim,” “anticipate,” “assume,” “believe,” “contemplate,” “continue,” “could,” “due,” “estimate,” “expect,” “goal,” “intend,” “may,” “objective,” “plan,” “predict,” “potential,” “positioned,” “seek,” “should,” “target,” “will,” “would” and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Important factors that may cause actual results to differ materially from current expectations include, among other things: the risks related to tariffs and unexpected changes in tariffs, trade barriers and regulatory requirements, export licensing requirements or other restrictive actions by the United States or retaliatory tariffs and other actions taken by foreign governments; the risk that we might not realize some or all of the benefits expected to result from the divestiture of our Advanced Rehabilitation Business or new credit facility; the FDA regulatory process is expensive, time-consuming and uncertain, and the failure to obtain and maintain required regulatory clearances and approvals could prevent us from commercializing our products; we may be unable to successfully commercialize newly developed or acquired products or therapies within expected timeframes; if clinical studies of our future product candidates do not produce results necessary to support regulatory clearance or approval in the United States or elsewhere, we will be unable to expand the indications for or commercialize these products; if we fail to properly manage growth or scale our business processes, systems, or data management, our business could suffer; our ability to maintain our competitive position depends on our ability to attract, retain and motivate our senior management team and highly qualified personnel necessary to execute our strategic plans; we may face issues with respect to the supply of our products or their components due to product quality and regulatory compliance issues, including increased costs, disruptions of supply, shortages, contamination or mislabeling; we might not meet certain of our debt covenants under our Credit Agreement and might be required to repay our indebtedness on an accelerated basis; there are restrictions on operations and other costs associated with our indebtedness; we might require additional capital to fund our current financial obligations and support business growth; failure to establish and maintain effective financial controls could adversely affect our business and stock price; we might not be able to complete acquisitions or successfully integrate new businesses, products or technologies in a cost-effective and non-disruptive manner; our cash is maintained at financial institutions, often in balance that exceed federally insured limits; we are subject to securities class action litigation and may be subject to similar or other litigation, in the future, which will require significant management time and attention, result in significant legal expenses or costs not covered by our insurers, and may result in unfavorable outcomes; we are highly dependent on a limited number of products; our long-term growth depends on our ability to develop, acquire and commercialize new products, line extensions or expanded indications; demand for our existing portfolio of products and any new products, line extensions or expanded indications depends on the continued and future acceptance of our products by physicians, patients, third-party payers and others in the medical community; the proposed down classification of non-invasive bone growth stimulators, including our EXOGEN system, by the FDA could increase future competition for bone growth stimulators and otherwise adversely affect the Company’s sales of EXOGEN; failure to achieve and maintain adequate levels of coverage and/or reimbursement for our products or future products, the procedures using our products, such as our hyaluronic acid (“HA”) viscosupplements, or future products we may seek to commercialize; failure to achieve and maintain adequate levels of coverage and/or reimbursement for our products or future products, the procedures using our products; pricing and other competitive factors; governments outside the United States might not provide coverage or reimbursement of our products; we compete and may compete in the future against other companies, some of which have longer operating histories, more established products or greater resources than we do; if our HA products are reclassified from medical devices to drugs in the United States by the FDA, it could negatively impact our ability to market these products and may require that we conduct costly additional clinical studies to support current or future indications for use of those products; our failure to properly manage our anticipated growth and strengthen our brands; risks related to product liability claims; fluctuations in demand for our products; issues relating to the supply of our products or their components due to product quality and regulatory compliance issues, including increased costs, disruptions of supply, shortages, contamination or mislabeling; our reliance on a limited number of third-party manufacturers to manufacture certain of our products; if our facilities are damaged or become inoperable, we will be unable to continue to research, develop and manufacture certain of our products; economic, political, regulatory and other risks related to international sales, manufacturing and operations; failure to maintain contractual relationships; security breaches, unauthorized access to our disclosure of information, cyberattacks, or other incidents, or the perception that confidential information in our or our vendors’ or service providers’ possession or control is not secure; failure of key information technology and communications systems, process or sites; risks related to our future capital needs; failure to comply with extensive governmental regulation relevant to us and our products; we may be subject to enforcement action if we engage in improper claims submission practices and resulting audits or denials of our claims by government agencies could reduce our net sales or profits; unstable political or economic conditions; legislative or regulatory reforms; our business might experience adverse impacts due to public health outbreaks; risks related to intellectual property matters; the dilution of our Class A common stockholders upon an exchange of the outstanding common membership interests in Bioventus LLC could adversely affect the market price of our Class A common stock and the resale of such shares could cause the market price of our Class A common stock to fall; and other the other risks identified in our Annual Report on Form 10-K for the year ended December 31, 2024 and our Quarterly Reports on Form 10-Q, as such factors may be updated from time to time in Bioventus’ other filings with the SEC which are accessible on the SEC’s website at www.sec.gov and the Investor Relations page of Bioventus’ website at https://ir.bioventus.com. Except to the extent required by law, the Company undertakes no obligation to update or review any estimate, projection, or forward-looking statement. Actual results may differ materially from those set forth in the forward-looking statements. BIOVENTUS INC.Consolidated balance sheetsAs of June 28, 2025 and December 31, 2024(Amounts in thousands, except share amounts) (unaudited) June 28, 2025 December 31, 2024Assets Current assets: Cash and cash equivalents$32,910 $41,582 Accounts receivable, net 132,367 127,393 Inventory 96,465 92,475 Prepaid and other current assets 13,461 14,160 Total current assets 275,203 275,610 Property and equipment, net 24,512 27,012 Goodwill 7,462 7,462 Intangible assets, net 386,954 404,729 Operating lease assets 6,225 6,506 Deferred tax assets 4,745 4,745 Investment and other assets 1,687 1,892 Total assets$706,788 $727,956 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable$24,245 $23,690 Accrued liabilities 113,666 135,879 Current portion of long-term debt 43,358 27,339 Current portion of contingent consideration — 19,573 Other current liabilities 4,411 3,917 Total current liabilities 185,680 210,398 Long-term debt, less current portion 297,880 308,288 Deferred income taxes 651 564 Other long-term liabilities 21,278 23,102 Total liabilities 505,489 542,352 Stockholders’ Equity: Preferred stock, $0.001 par value, 10,000,000 shares authorized, 0 shares issued Class A common stock, $0.001 par value, 250,000,000 shares authorized as of June 28, 2025 and December 31, 2024, 66,885,359 and 65,758,341 shares issued and outstanding as of June 28, 2025 and December 31, 2024, respectively 67 66 Class B common stock, $0.001 par value, 50,000,000 shares authorized, 15,786,737 shares issued and outstanding as of June 28, 2025 and December 31, 2024 16 16 Additional paid-in capital 514,772 508,092 Accumulated deficit (352,839) (357,661)Accumulated other comprehensive loss (774) (2,573)Total stockholders’ equity attributable to Bioventus Inc. 161,242 147,940 Noncontrolling interest 40,057 37,664 Total stockholders’ equity 201,299 185,604 Total liabilities and stockholders’ equity$706,788 $727,956 BIOVENTUS INC.Consolidated statements of operations and comprehensive income (loss)(Amounts in thousands, except share and per share data, unaudited) Three Months Ended Six Months Ended June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024Net sales$147,660 $151,217 $271,536 $280,674 Cost of sales (including depreciation and amortization of $10,603, $11,021, $20,868 and $21,046, respectively) 45,570 47,578 86,390 88,655 Gross profit 102,090 103,639 185,146 192,019 Selling, general and administrative expense 79,110 96,668 152,612 175,443 Research and development expense 3,172 4,210 6,183 6,837 Change in fair value of contingent consideration — 300 — 595 Depreciation and amortization 1,439 2,064 3,032 3,819 Impairment of assets — 31,870 — 31,870 Loss on disposals 1 — 82 — Operating income (loss) 18,368 (31,473) 23,237 (26,545)Interest expense, net 7,494 9,924 15,003 20,263 Other expense, net 561 159 1,338 222 Other expense 8,055 10,083 16,341 20,485 Income (loss) before income taxes 10,313 (41,556) 6,896 (47,030)Income tax expense (benefit), net 1,041 (7,339) 946 (6,432)Net income (loss) 9,272 (34,217) 5,950 (40,598)(Income) loss attributable to noncontrolling interest (1,813) 8,535 (1,128) 10,026 Net income (loss) attributable to Bioventus Inc.$7,459 $(25,682) $4,822 $(30,572) Income (loss) per share of Class A common stock: Basic$0.11 $(0.40) $0.07 $(0.48)Diluted$0.11 $(0.40) $0.07 $(0.48) Weighted-average shares of Class A common stock outstanding: Basic 66,500,433 64,056,759 66,258,679 63,720,342 Diluted 68,536,759 64,056,759 68,765,591 63,720,342 BIOVENTUS INC.Consolidated condensed statements of cash flows(Amounts in thousands, unaudited) Three Months Ended Six Months Ended June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024Operating activities: Net income (loss)$9,272 $(34,217) $5,950 $(40,598)Adjustments to reconcile net loss to net cash from operating activities: Depreciation and amortization 12,049 13,090 23,914 24,875 Equity-based compensation 3,643 5,777 6,057 8,767 Change in fair value of contingent consideration — 300 — 595 Impairment of assets — 31,870 — 31,870 Deferred income taxes 44 (8,179) 87 (8,098)Unrealized (gain) loss on foreign currency fluctuations (123) 159 (365) 536 Loss on disposals 1 — 82 — Other, net 575 819 1,606 424 Changes in working capital 477 5,543 (30,724) (9,214)Net cash from operating activities 25,938 15,162 6,607 9,157 Investing activities: Settlement from the sale of a business (686) — (686) — Purchase of property and equipment (683) (77) (1,509) (368)Investments and acquisition of distribution rights — — — (709)Net cash from investing activities (1,369) (77) (2,195) (1,077)Financing activities: Proceeds from issuance of Class A common stock 1,317 609 1,467 786 Payment of contingent consideration (10,771) — (19,771) — Borrowing on revolver — — 15,000 — Payment on revolver (5,000) — (10,000) — Debt refinancing costs — — — (1,180)Payments on long-term debt — (8,264) — (11,320)Other, net (209) (190) (412) (373)Net cash from financing activities (14,663) (7,845) (13,716) (12,087)Effect of exchange rate changes on cash 202 (419) 632 (963)Net change in cash and cash equivalents 10,108 6,821 (8,672) (4,970)Cash and cash equivalents at the beginning of the period 22,802 25,173 41,582 36,964 Cash and cash equivalents at the end of the period$32,910 $31,994 $32,910 $31,994 Use of Non-GAAP Financial Measures Organic Revenue Growth The Company defines the term “organic revenue” as revenue in the stated period excluding the impact from business acquisitions and divestitures. The Company uses the related term “organic revenue growth” or "organic growth" to refer to the financial performance metric of comparing the stated period's organic revenue with the comparable reported revenue of the corresponding period in the prior year. The Company believes that these non-GAAP financial measures, when taken together with GAAP financial measures, allow the Company and its investors to better measure the Company’s performance and evaluate long-term performance trends. Organic revenue growth also facilitates easier comparisons of the Company’s performance with prior and future periods and relative comparisons to its peers. The Company excludes the effect of acquisitions and divestitures because these activities can have a significant impact on the Company's reported results, which the Company believes makes comparisons of long-term performance trends difficult for management and investors. Adjusted EBITDA, Adjusted EBITDA Margin, Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP Operating Income, Non-GAAP Operating Expenses, Non-GAAP R&D, Non-GAAP Operating Margin, Non-GAAP Net Income, and Non-GAAP Earnings per share of Class A Common Stock We present Adjusted EBITDA, Adjusted EBITDA Margin, Non-GAAP Gross Profit, Non-GAAP (or Adjusted) Gross Margin, Non-GAAP Operating Income, Non-GAAP Operating Expenses, Non-GAAP R&D, Non-GAAP Operating Margin, Non-GAAP Net Income, and Non-GAAP Earnings per share of Class A common stock, all non-GAAP financial measures, to supplement our GAAP financial reporting because we believe these measures are useful indicators of our operating performance. We define Adjusted EBITDA as net income (loss) before depreciation and amortization, provision of income taxes and interest expense, net, adjusted for the impact of certain cash, non-cash and other items that we do not consider in our evaluation of ongoing operating performance. These items include acquisition and divestiture related costs, certain shareholder litigation costs, impairment of assets, restructuring and succession charges, equity-based compensation expense, financial restructuring costs and other items. We define Adjusted EBITDA Margin as Adjusted EBITDA as a percent of net sales. See the table below for a reconciliation of net loss to Adjusted EBITDA. Our management uses Adjusted EBITDA principally as a measure of our operating performance and believes that Adjusted EBITDA is useful to our investors because it is frequently used by securities analysts, investors and other interested parties in their evaluation of the operating performance of companies in industries similar to ours. Our management also uses Adjusted EBITDA for planning purposes, including the preparation of our annual operating budget and financial projections. Our management uses Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP Operating Income, Non-GAAP Operating Expense, Non-GAAP Operating Margin and Non-GAAP Net Income principally as measures of our operating performance and believes that these non-GAAP financial measures are useful to better understand the long term performance of our core business and to facilitate comparison of our results to those of peer companies. Our management also uses these non-GAAP financial measures for planning purposes, including the preparation of our annual operating budget and financial projections. We define Non-GAAP Gross Profit as gross profit, adjusted for the impact of certain cash, non-cash and other items that we do not consider in our evaluation of ongoing operating performance. These items include depreciation and amortization included in the cost of goods sold and acquisition and divestiture related costs in the cost of goods sold. We define Non-GAAP Gross Margin as Non-GAAP Gross Profit divided by net sales. See the table below for a reconciliation of gross profit and gross margin to Non-GAAP Gross Profit and Non-GAAP Gross Margin. We define Non-GAAP Operating Income as operating income, adjusted for the impact of certain cash, non-cash and other items that we do not consider in our evaluation of ongoing operating performance. These items include depreciation and amortization, acquisition and divestiture related costs, certain shareholder litigation costs, impairment of assets, restructuring and succession charges, financial restructuring costs and other items. Non-GAAP Operating Margin is defined as Non-GAAP Operating Income divided by net sales. See the table below for a reconciliation of operating income (loss) and operating margin to Non-GAAP Operating Income and Non-GAAP Operating Margin. We define Non-GAAP Operating Expenses as operating expenses, adjusted to exclude certain cash, non-cash and other items that we do not consider in our evaluation of ongoing operating performance. These items include depreciation and amortization, acquisition and divestiture related costs, certain shareholder litigation costs, impairment of assets, restructuring and succession charges, financial restructuring costs and other items. See the table below for a reconciliation of operating expenses to Non-GAAP Operating Expenses. We define Non-GAAP R&D as research and development, adjusted to exclude certain cash, non-cash and other items that we do not consider in our evaluation of ongoing operating performance. These items include depreciation and amortization, acquisition and divestiture related costs, restructuring and succession charges, and other items. See the table below for a reconciliation of operating expenses to Non-GAAP R&D. We define Non-GAAP Net Income as Net Income, adjusted for the impact of certain cash, non-cash and other items that we do not consider in our evaluation of ongoing operating performance. These items include depreciation and amortization, acquisition and divestiture related costs, certain shareholder litigation costs, restructuring and succession charges, impairment of assets, financial restructuring costs, other items and the tax effect of adjusting items. See the table below for a reconciliation of Net loss to Non-GAAP Net Income. We define Non-GAAP Earnings per Class A share as Earnings per Class A share, adjusted for the impact of certain cash, non-cash and other items that we do not consider in our evaluation of ongoing operating performance. These items include depreciation and amortization, acquisition and divestiture related costs, certain shareholder litigation costs, restructuring and succession charges, impairment of assets, financial restructuring costs, other items and the tax effect of adjusting items divided by weighted average number of shares of Class A common stock outstanding during the period. See the table below for a reconciliation of loss per Class A share to Non-GAAP Earnings per Class A share. Net Sales, International Net Sales Growth and Constant Currency Basis Net Sales, International Net Sales Growth and Constant Currency Basis are non-GAAP measures, which are calculated by translating current and prior year results at the same foreign currency exchange rate. Constant currency can be presented for numerous GAAP measures, but is most commonly used by management to facilitate the comparison of sales in foreign currencies to prior periods and analyze net sales performance without the impact of changes in foreign currency exchange rates. Prior Period Recast The Company identified an immaterial error in its equity-based compensation expense, which impacted annual and interim financial statements for the fiscal year 2024. Financial information relating to 2024 has been revised to correct this immaterial error. Refer to Note 1. Organization in the Company's Form 10-Q for the period ended June 28, 2025, filed on August 6, 2025, for further details regarding the immaterial error in equity-based compensation. Limitations of the Usefulness of Non-GAAP Measures Non-GAAP financial measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for, or as superior to, the financial information prepared and presented in accordance with GAAP. These measures might exclude certain normal recurring expenses. Therefore, these measures may not provide a complete understanding of the Company's performance and should be reviewed in conjunction with the GAAP financial measures. Additionally, other companies might define their non-GAAP financial measures differently than we do. Investors are encouraged to review the reconciliation of the non-GAAP measures provided in this press release, including in the tables below, to their most directly comparable GAAP measures. Additionally, the Company does not provide U.S. GAAP financial measures on a forward-looking basis because the Company is unable to predict with reasonable certainty the impact and timing of acquisition and divestiture related expenses, accounting fair-value adjustments and certain other reconciling items without unreasonable efforts. These items are uncertain, depend on various factors, and could be material to the Company’s results computed in accordance with U.S. GAAP. Reconciliation of Net Income (Loss) to Adjusted EBITDA (unaudited) Three Months Ended Six Months Ended Twelve Months Ended($, thousands)June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 December 31, 2024Net income (loss)$9,272 $(34,217) $5,950 $(40,598) $(47,049)Interest expense, net 7,494 9,924 15,003 20,263 38,792 Income tax expense (benefit), net 1,041 (7,339) 946 (6,432) (5,293)Depreciation and amortization(a) 12,049 13,090 23,914 24,875 49,555 Acquisition and related costs(b) — 300 — 511 1,339 Shareholder litigation costs(c) 13 12,502 36 13,670 13,802 Restructuring and succession charges(d) — (40) — 13 (57)Equity compensation(e) 3,643 5,777 6,057 8,767 13,274 Financial restructuring costs(f) 172 (5) 172 347 351 Loss on disposal of a business(g) 1 — 82 — 292 Impairment of assets(h) — 31,870 — 31,870 36,357 Other items(i) 66 2,590 803 3,789 7,519 Adjusted EBITDA$33,751 $34,452 $52,963 $57,075 $108,882 (a) Includes for the three and six months ended June 28, 2025 and June 29, 2024, respectively, depreciation and amortization of $10.6 million, $11.0 million, $20.9 million and $21.0 million in cost of sales and $1.4 million, $2.1 million, $3.0 million and $3.9 million in operating expenses presented in the consolidated statements of operations and comprehensive income (loss). The year ended December 31, 2024 includes depreciation and amortization of $41.9 million in cost of sales and $7.7 million in operating expenses. (b) Includes acquisition and integration costs related to completed acquisitions and changes in fair value of contingent consideration. (c) Costs incurred as a result of certain shareholder litigation unrelated to our ongoing operations. (d) Costs incurred were the result of contract terminations. (e) Includes compensation expense resulting from awards granted under our equity-based compensation plans. (f) Financial restructuring costs in 2025 related to our new 2025 Credit Agreement. Activity in 2024 is attributable to advisory fees and debt amendment related costs related to our Amended 2019 Credit Agreement. (g) Represents the loss on the disposal of the Advanced Rehabilitation Business. (h) Represents a non-cash impairment charge for intangible assets solely attributable to our Advanced Rehabilitation Business in 2024 due to our decision to divest the business. (i) Other items includes charges associated with strategic transactions, including potential acquisitions or divestitures and a transformative project to redesign systems and information processing. Other items during the six months ended June 28, 2025 primarily consisted of $0.5 million of divestiture expenses related to the Advanced Rehabilitation Business sold on December 31, 2024. During the three and six months ended June 29, 2024, other items primarily consisted of: (i) strategic transaction expenses of $1.8 million and $2.3 million, respectively, primarily related to Advanced Rehabilitation Business divestiture expenses; and (ii) transformative project costs of $0.5 million and $1.3 million, respectively. During the year ended December 31, 2024, other items primarily consisted of: (i) divestiture costs of $4.7 million related to the Advanced Rehabilitation Business, including transactional fees; (ii) transformative project costs of $1.7 million; and (iii) strategic transaction costs of $0.4 million. Reconciliation of Other Reported GAAP Measures to Non-GAAP Measures Three Months Ended June 28, 2025Gross Profit Operating Expenses(a) R&D Operating Income Net Income Diluted EPS(k)Reported GAAP measure$102,090 $80,550 $3,172 $18,368 $9,272 $0.11 Reported GAAP margin 69.1% 12.4% Depreciation and amortization(b) 10,603 1,439 7 12,049 12,049 0.14 Shareholder litigation costs(d) — 13 — 13 13 — Financial restructuring costs(f) — 172 — 172 172 — Loss on disposal of a business(g) — 1 — 1 1 — Other items(i) — (47) 89 42 66 — Tax effect of adjusting items(j) — — — — (3,088) (0.04)Non-GAAP measure$112,693 $78,972 $3,076 $30,645 $18,485 $0.21 Non-GAAP margin 76.3% 20.8% Non-GAAP Gross Margin Non-GAAP Operating Expenses Non-GAAP R&D Non-GAAP Operating Income Non-GAAP Net income Adjusted EPS Three Months Ended June 29, 2024Gross Profit Operating Expenses(a) R&D Operating Income Net Loss Diluted EPS(k)Reported GAAP measure$103,639 $130,902 $4,210 $(31,473) $(34,217) $(0.40)Reported GAAP margin 68.5% (20.8)% Depreciation and amortization(b) 11,021 2,064 5 13,090 13,090 0.16 Acquisition and related costs(c) — 300 — 300 300 — Shareholder litigation costs(d) — 12,502 — 12,502 12,502 0.16 Restructuring and succession charges(e) — (40) — (40) (40) — Financial restructuring costs(f) — (5) — (5) (5) — Impairment of assets(h) — 31,870 — 31,870 31,870 0.40 Other items(i) — 2,385 205 2,590 2,590 0.03 Tax effect of adjusting items(j) — — — — (13,331) (0.19)Non-GAAP measure$114,660 $81,826 $4,000 $28,834 $12,759 $0.16 Non-GAAP margin 75.8% 19.1 % Non-GAAP Gross Margin Non-GAAP Operating Expenses Non-GAAP R&D Non-GAAP Operating Income Non-GAAP Net income Adjusted EPS Six Months Ended June 28, 2025Gross Profit Operating Expenses(a) R&D OperatingIncome Net Income Diluted EPS(k)Reported GAAP measure$185,146 $155,726 $6,183 $23,237 $5,950 $0.07 Reported GAAP margin 68.2% 8.6% Depreciation and amortization(b) 20,868 3,032 14 23,914 23,914 0.28 Shareholder litigation costs(d) — 36 — 36 36 — Financial restructuring costs(f) — 172 — 172 172 — Loss on disposal of a business(g) — 82 — 82 82 — Other items(i) — 745 158 903 803 0.01 Tax effect of adjusting items(i) — — — — (6,277) (0.07)Non-GAAP measure$206,014 $151,659 $6,011 $48,344 $24,680 $0.29 Non-GAAP margin 75.9% 17.8% Non-GAAP Gross Margin Non-GAAP Operating Expenses Non-GAAP R&D Non-GAAP Operating Income Non-GAAP Net Income Adjusted EPS Six Months Ended June 29, 2024Gross Profit Operating Expenses(a) R&D OperatingIncome Net Loss Diluted EPS(k)Reported GAAP measure$192,019 $211,727 $6,837 $(26,545) $(40,598) $(0.48)Reported GAAP margin 68.4% (9.5%) Depreciation and amortization(b) 21,046 3,819 10 24,875 24,875 0.31 Acquisition and related costs(c) — 511 — 511 511 0.01 Shareholder litigation costs(d) — 13,670 — 13,670 13,670 0.17 Restructuring and succession charges(e) — 13 — 13 13 — Financial restructuring costs(f) — 347 — 347 347 — Impairment of assets(h) — 31,870 — 31,870 31,870 0.40 Other items(i) — 3,496 293 3,789 3,789 0.05 Tax effect of adjusting items(j) — — — — (17,037) (0.24)Non-GAAP measure$213,065 $158,001 $6,534 $48,530 $17,440 $0.22 Non-GAAP margin 75.9% 17.3% Non-GAAP Gross Margin Non-GAAP Operating Expenses Non-GAAP R&D Non-GAAP Operating Income Non-GAAPNet Income Adjusted EPS (a) The "Reported GAAP Measure" under the "Operating Expenses" column is a sum of all GAAP operating expense line items, excluding research and development. (b) Includes for the three and six months ended June 28, 2025 and June 29, 2024, respectively, depreciation and amortization of $10.6 million, $11.0 million, $20.9 million and $21.0 million in cost of sales and $1.4 million, $2.1 million, $3.0 million and $3.9 million in operating expenses presented in the consolidated statements of operations and comprehensive income (loss). (c) Includes acquisition and integration costs related to completed acquisitions and changes in fair value of contingent consideration. (d) Costs incurred as a result of certain shareholder litigation unrelated to our ongoing operations. (e) Costs incurred were the result of contract terminations. (f) Financial restructuring costs in 2025 related to our new 2025 Credit Agreement. Activity in 2024 is attributable to advisory fees and debt amendment related costs related to our Amended 2019 Credit Agreement. (g) Represents the loss on disposal of the Advanced Rehabilitation Business. (h) Represents a non-cash impairment charge for intangible assets solely attributable to our Advanced Rehabilitation Business in 2024 due to our decision to divest the business. (i) Other items includes charges associated with strategic transactions, including potential acquisitions or divestitures and a transformative project to redesign systems and information processing. Other items during the six months ended June 28, 2025 primarily consisted of $0.5 million of divestiture expenses related to the Advanced Rehabilitation Business sold on December 31, 2024. During the three and six months ended June 29, 2024, other items primarily consisted of: (i) strategic transaction expenses of $1.8 million and $2.3 million, respectively, primarily related to Advanced Rehabilitation Business divestiture expenses; and (ii) transformative project costs of $0.5 million and $1.3 million, respectively. (j) An estimated tax impact for adjustments to Non-GAAP Net Income was calculated by applying a rate of 25.1% for the three and six months ended June 28, 2025 and June 29, 2024. The three and six months ended June 29, 2024 also includes a $6.2 million tax impact related to the impairment of assets. (k) Adjustments are pro-rated to exclude the weighted average non-controlling interest ownership of 19.1% and 19.5%, respectively, for the three and six months ended June 28, 2025 and June 29, 2024. Investor Inquiries and Media:Dave CrawfordBioventusinvestor.relations@bioventus.com

Corporate News Reports Second-Quarter Diluted EPS of $0.52 on a GAAP Basis, a Decrease of 32.5 Percent; Adjusted Diluted EPS of $2.97, an Increase of 12.1 Percent; These Results Include an Unfavorable Impact of $0.42 Per Share Related to Acquired IPR&D and Milestones Expense Delivers Second-Quarter Net Revenues of $15.423 Billion, an Increase of 6.6 Percent on a Reported Basis or 6.5 Percent on an Operational Basis Second-Quarter Global Net Revenues from the Immunology Portfolio Were $7.631 Billion, an Increase of 9.5 Percent on a Reported Basis, or 9.2 Percent on an Operational Basis; Global Skyrizi Net Revenues Were $4.423 Billion; Global Rinvoq Net Revenues Were $2.028 Billion; Global Humira Net Revenues Were $1.180 Billion Second-Quarter Global Net Revenues from the Neuroscience Portfolio Were $2.683 Billion, an Increase of 24.2 Percent on a Reported Basis, or 24.0 Percent on an Operational Basis; Global Vraylar Net Revenues Were $900 Million; Global Botox Therapeutic Net Revenues Were $928 Million; Combined Global Ubrelvy and Qulipta Net Revenues Were $605 Million Second-Quarter Global Net Revenues from the Oncology Portfolio Were $1.676 Billion, an Increase of 2.6 Percent on a Reported Basis, or 2.4 Percent on an Operational Basis; Global Imbruvica Net Revenues Were $754 Million; Global Venclexta Net Revenues Were $691 Million; Global Elahere Net Revenues Were $159 Million Second-Quarter Global Net Revenues from the Aesthetics Portfolio Were $1.279 Billion, a Decrease of 8.1 Percent on a Reported Basis, or 8.0 Percent on an Operational Basis; Global Botox Cosmetic Net Revenues Were $692 Million; Global Juvederm Net Revenues Were $260 Million Raises 2025 Adjusted Diluted EPS Guidance Range from $11.67 - $11.87 to $11.88 - $12.08, which Includes an Unfavorable Impact of $0.55 Per Share Related to Acquired IPR&D and Milestones Expense Incurred Year-To-Date Through the Second Quarter 2025 NORTH CHICAGO, Ill., July 31, 2025 /PRNewswire/ -- AbbVie (NYSE:ABBV) announced financial results for the second quarter ended June 30, 2025. "AbbVie delivered another outstanding quarter with strong performance from our diversified growth platform. We also made meaningful pipeline progress with several regulatory approvals, encouraging clinical data and strategic investments in promising external innovation," said Robert A. Michael, chairman and chief executive officer, AbbVie. "We're entering the second half of the year with substantial momentum and are once again raising our full-year outlook." Second-Quarter Results Worldwide net revenues were $15.423 billion, an increase of 6.6 percent on a reported basis, or 6.5 percent on an operational basis. Global net revenues from the immunology portfolio were $7.631 billion, an increase of 9.5 percent on a reported basis, or 9.2 percent on an operational basis. Global Skyrizi net revenues were $4.423 billion, an increase of 62.2 percent on a reported basis, or 61.8 percent on an operational basis. Global Rinvoq net revenues were $2.028 billion, an increase of 41.8 percent on a reported basis, or 41.2 percent on an operational basis. Global Humira net revenues were $1.180 billion, a decrease of 58.1 percent on a reported basis, or 58.2 percent on an operational basis. Global net revenues from the neuroscience portfolio were $2.683 billion, an increase of 24.2 percent on a reported basis, or 24.0 percent on an operational basis. Global Vraylar net revenues were $900 million, an increase of 16.3 percent. Global Botox Therapeutic net revenues were $928 million, an increase of 14.1 percent on a reported basis, or 14.2 percent on an operational basis. Global Ubrelvy net revenues were $338 million, an increase of 47.1 percent on a reported basis, or 47.2 percent on an operational basis. Global Qulipta net revenues were $267 million, an increase of 77.5 percent on a reported basis, or 76.9 percent on an operational basis. Global net revenues from the oncology portfolio were $1.676 billion, an increase of 2.6 percent on a reported basis, or 2.4 percent on an operational basis. Global Imbruvica net revenues were $754 million, a decrease of 9.5 percent. Global Venclexta net revenues were $691 million, an increase of 8.5 percent on a reported basis, or 8.3 percent on an operational basis. Global Elahere net revenues were $159 million, an increase of 24.2 percent on a reported basis, or 23.7 percent on an operational basis. Global net revenues from the aesthetics portfolio were $1.279 billion, a decrease of 8.1 percent on a reported basis, or 8.0 percent on an operational basis. Global Botox Cosmetic net revenues were $692 million, a decrease of 5.0 percent on a reported basis, or 4.9 percent on an operational basis. Global Juvederm net revenues were $260 million, a decrease of 24.0 percent. On a GAAP basis, gross margin in the second quarter was 71.8 percent. The adjusted gross margin was 84.4 percent. On a GAAP basis, selling, general and administrative (SG&A) expense was 21.1 percent of net revenues. The adjusted SG&A expense was 21.0 percent of net revenues. On a GAAP basis, research and development (R&D) expense was 13.8 percent of net revenues. The adjusted R&D expense was 13.7 percent of net revenues. Acquired IPR&D and milestones expense was 5.3 percent of net revenues. On a GAAP basis, operating margin in the second quarter was 31.7 percent. The adjusted operating margin was 44.3 percent. Net interest expense was $678 million. On a GAAP basis, the tax rate in the quarter was 39.4 percent. The adjusted tax rate was 16.2 percent. Diluted EPS in the second quarter was $0.52 on a GAAP basis. Adjusted diluted EPS, excluding specified items, was $2.97. These results include an unfavorable impact of $0.42 per share related to acquired IPR&D and milestones expense. Global Skyrizi net revenues were $4.423 billion, an increase of 62.2 percent on a reported basis, or 61.8 percent on an operational basis. Global Rinvoq net revenues were $2.028 billion, an increase of 41.8 percent on a reported basis, or 41.2 percent on an operational basis. Global Humira net revenues were $1.180 billion, a decrease of 58.1 percent on a reported basis, or 58.2 percent on an operational basis. Global Vraylar net revenues were $900 million, an increase of 16.3 percent. Global Botox Therapeutic net revenues were $928 million, an increase of 14.1 percent on a reported basis, or 14.2 percent on an operational basis. Global Ubrelvy net revenues were $338 million, an increase of 47.1 percent on a reported basis, or 47.2 percent on an operational basis. Global Qulipta net revenues were $267 million, an increase of 77.5 percent on a reported basis, or 76.9 percent on an operational basis. Global Imbruvica net revenues were $754 million, a decrease of 9.5 percent. Global Venclexta net revenues were $691 million, an increase of 8.5 percent on a reported basis, or 8.3 percent on an operational basis. Global Elahere net revenues were $159 million, an increase of 24.2 percent on a reported basis, or 23.7 percent on an operational basis. Global Botox Cosmetic net revenues were $692 million, a decrease of 5.0 percent on a reported basis, or 4.9 percent on an operational basis. Global Juvederm net revenues were $260 million, a decrease of 24.0 percent. 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 announced the U.S. Food and Drug Administration (FDA) approved Rinvoq (upadacitinib) as the first oral Janus Kinase (JAK) inhibitor approved for the treatment of adults with giant cell arteritis (GCA). The approval was supported by data from the pivotal Phase 3 SELECT-GCA trial, which met the primary endpoint of sustained remission and key secondary endpoints. This marks the ninth approved indication for Rinvoq in the U.S., across rheumatology, gastroenterology and dermatology. AbbVie announced positive topline results from the first of two pivotal studies in the Phase 3 UP-AA clinical program evaluating the safety and efficacy of Rinvoq in adult and adolescent patients with severe alopecia areata (AA). In the study, Rinvoq achieved the primary endpoint, demonstrating that 44.6% and 54.3% of patients with severe AA treated with Rinvoq 15mg and 30mg, respectively, reached 80% or more scalp hair coverage at week 24 as defined by the severity of alopecia tool (SALT) score ≤20. Key secondary endpoints, including improvements in eyebrows and eyelashes, as well as the percentage of subjects with 90% or more scalp coverage (SALT ≤10) and complete scalp hair coverage (SALT=0) at Week 24, were also met. Rinvoq's safety profile in AA was generally consistent with that in approved indications, and no new safety signals were identified in this study. AbbVie and Capstan Therapeutics, a clinical-stage biotechnology company dedicated to advancing in vivo engineering of cells through RNA delivery using targeted lipid nanoparticles (tLNPs), announced a definitive agreement under which AbbVie will acquire Capstan. The transaction includes CPTX2309, a potential first-in-class in vivo tLNP anti-CD19 CAR-T therapy candidate, currently in Phase 1 development for the treatment of B cell-mediated autoimmune diseases. Additionally, AbbVie will acquire Capstan's proprietary tLNP platform technology designed to deliver RNA payloads, such as mRNA, capable of engineering specific cell types in vivo. AbbVie announced new data from its Phase 3 TEMPLE head-to-head study evaluating the tolerability, safety and efficacy of Qulipta (atogepant) compared to topiramate for the preventive treatment of migraine in adult patients with a history of four or more migraine days per month. In the study, Qulipta met the primary endpoint of fewer treatment discontinuations attributed to adverse events versus topiramate, and all six secondary endpoints achieved statistical significance for superiority versus topiramate, demonstrating clinical efficacy. Full results from the TEMPLE study will be presented at an upcoming medical meeting. AbbVie announced that Emrelis (telisotuzumab vedotin-tllv) was granted accelerated approval by the FDA for the treatment of adult patients with locally advanced or metastatic, non-squamous non-small cell lung cancer (NSCLC) with high c-Met protein overexpression who have received a prior systemic therapy. Emrelis is the first treatment approved for previously treated advanced NSCLC patients with high c-Met protein overexpression, a population that often faces poor prognosis and has limited treatment options. AbbVie announced the submission of a supplemental New Drug Application (sNDA) to the FDA for Venclexta (venetoclax) and acalabrutinib combination therapy for the treatment of chronic lymphocytic leukemia (CLL). This combination therapy has potential to be the first all oral, fixed-duration regimen for previously untreated patients with CLL. The submission is supported by data from the Phase 3 AMPLIFY trial which demonstrated that the combination regimen of Venclexta and acalabrutinib improved progression-free survival (PFS) compared to standard chemoimmunotherapy in previously untreated patients with CLL. At the American Society of Clinical Oncology (ASCO) Annual Meeting, AbbVie presented key data that showcased significant progress across AbbVie's robust oncology pipeline, in a range of difficult-to-treat solid tumors and blood cancers. Highlights included new data from AbbVie's novel investigational antibody-drug conjugates (ADCs) telisotuzumab adizutecan (ABBV-400, Temab-A) in advanced NSCLC, ABBV-706 in high-grade neuroendocrine neoplasms (NENs) and pivekimab sunirine (PVEK) in blastic plasmacytoid dendritic cell neoplasm (BPDCN). AbbVie announced the global Phase 3 VERONA trial evaluating Venclexta (venetoclax) in combination with azacitidine in the treatment of newly diagnosed higher-risk myelodysplastic syndrome (MDS) did not meet the primary endpoint of overall survival. No new safety signals were observed and results from the trial will be available in a future medical congress and/or publication. AbbVie and Ichnos Glenmark Innovation (IGI) announced an exclusive licensing agreement for IGI's lead investigational asset, ISB 2001, which is being investigated for the treatment of oncology and autoimmune diseases. ISB 2001 is a first-in-class trispecific T-cell engager currently in Phase 1 development for relapsed/refractory (r/r) multiple myeloma (MM). AbbVie announced the FDA approved a label expansion for Mavyret (glecaprevir/pibrentasvir), an oral pangenotypic direct acting antiviral (DAA) therapy. Mavyret is the first oral eight-week pangenotypic treatment option approved for people with acute or chronic hepatitis C virus (HCV). With this approval, providers can now treat HCV patients immediately at the time of diagnosis. AbbVie and ADARx Pharmaceuticals, a late clinical-stage biotechnology company developing next-generation RNA therapeutics, announced a collaboration and license option agreement to develop small interfering RNA (siRNA) therapeutics across multiple disease areas. The collaboration will leverage AbbVie's expertise in biotherapeutic drug development and commercialization with ADARx's proprietary RNA technology to advance next-generation siRNA therapies across neuroscience, immunology and oncology. Full-Year 2025 Outlook AbbVie is raising its adjusted diluted EPS guidance for the full year 2025 from $11.67 - $11.87 to $11.88 - $12.08, which includes an unfavorable impact of $0.55 per share related to acquired IPR&D and milestones expense incurred year-to-date through the second quarter 2025. The company's 2025 adjusted diluted EPS guidance excludes any impact from acquired IPR&D and milestones that may be incurred beyond the second quarter of 2025, as both cannot be reliably forecasted. 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, neuroscience, oncology, and eye care - and products and services across our Allergan Aesthetics portfolio. For more information about AbbVie, please visit us at www.abbvie.com. Follow @abbvie on X (formerly Twitter), Facebook, Instagram, YouTube or LinkedIn. Conference Call AbbVie will host an investor conference call today at 8:00 a.m. Central Time to discuss our second-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 2025 and 2024 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. 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 and uses of future or conditional verbs, 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 expressed or implied 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, changes to laws and regulations applicable to our industry, the impact of global macroeconomic factors, such as economic downturns or uncertainty, international conflict, trade disputes and tariffs, and other uncertainties and risks associated with global business operations. 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 2024 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, and specifically declines, to release publicly any revisions to forward-looking statements as a result of subsequent events or developments, except as required by law. Media: Investors: Gabby Tarbert Liz Shea (224) 244-0111 (847) 935-2211 Todd Bosse (847) 936-1182 Jeffrey Byrne (847) 938-2923 AbbVie Inc. Key Product Revenues Quarter Ended June 30, 2025 (Unaudited) % Change vs. 2Q24 Net Revenues (in millions) Reported Operationala U.S. Int'l. Total U.S. Int'l. Total Int'l. Total NET REVENUES $11,762 $3,661 $15,423 5.9 % 9.1 % 6.6 % 8.4 % 6.5 % Immunology 6,097 1,534 7,631 6.7 22.3 9.5 20.7 9.2 Skyrizi 3,843 580 4,423 64.3 49.7 62.2 47.2 61.8 Rinvoq 1,452 576 2,028 42.7 39.6 41.8 37.5 41.2 Humira 802 378 1,180 (66.0) (16.8) (58.1) (17.2) (58.2) Neuroscience 2,333 350 2,683 23.2 30.6 24.2 28.7 24.0 Vraylar 898 2 900 16.2 72.8 16.3 76.8 16.3 Botox Therapeutic 775 153 928 15.9 5.7 14.1 6.0 14.2 Ubrelvy 330 8 338 46.5 73.9 47.1 76.7 47.2 Qulipta 237 30 267 62.8 >100.0 77.5 >100.0 76.9 Vyalev 22 76 98 n/m >100.0 >100.0 >100.0 >100.0 Duodopa 20 77 97 (13.6) (13.7) (13.7) (16.3) (15.7) Other Neuroscience 51 4 55 (11.4) (23.3) (12.3) (21.3) (12.2) Oncology 1,026 650 1,676 (1.0) 8.7 2.6 8.3 2.4 Imbruvicab 543 211 754 (8.9) (11.2) (9.5) (11.2) (9.5) Venclexta 321 370 691 7.4 9.5 8.5 9.1 8.3 Elahere 138 21 159 8.0 n/m 24.2 n/m 23.7 Epkinlyc 22 48 70 57.4 >100.0 93.9 >100.0 92.3 Other Oncology 2 — 2 n/m n/m n/m n/m n/m Aesthetics 797 482 1,279 (7.8) (8.5) (8.1) (8.3) (8.0) Botox Cosmetic 410 282 692 (8.7) 0.9 (5.0) 1.2 (4.9) Juvederm Collection 105 155 260 (23.6) (24.4) (24.0) (24.4) (24.0) Other Aesthetics 282 45 327 1.6 5.8 2.2 6.4 2.3 Eye Care 226 288 514 (5.7) (2.4) (3.9) (1.5) (3.4) Ozurdex 30 95 125 (12.6) 5.8 0.6 4.4 (0.4) Lumigan/Ganfort 52 51 103 19.9 (15.4) (0.8) (15.2) (0.7) Alphagan/Combigan — 36 36 (91.6) (3.1) (25.6) (0.2) (23.5) Other Eye Care 144 106 250 (4.3) (1.7) (3.2) 0.9 (2.1) Other Key Products 835 202 1,037 11.2 (4.4) 7.8 (5.8) 7.5 Mavyret 184 191 375 9.7 (5.1) 1.6 (6.5) 0.8 Creon 404 — 404 8.4 n/m 8.4 n/m 8.4 Linzess/Constella 247 11 258 17.4 10.8 17.1 10.3 17.1 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. c Epkinly U.S. revenues reflect profit sharing. International revenues reflect product revenues as well as profit sharing from certain international territories. n/m = not meaningful AbbVie Inc. Key Product Revenues Six Months Ended June 30, 2025 (Unaudited) % Change vs. 6M24 Net Revenues (in millions) Reported Operationala U.S. Int'l. Total U.S. Int'l. Total Int'l. Total NET REVENUES $21,741 $7,025 $28,766 7.9 % 6.0 % 7.4 % 8.3 % 8.0 % Immunology 10,980 2,915 13,895 11.3 17.9 12.6 20.4 13.1 Skyrizi 6,762 1,086 7,848 69.2 46.9 65.8 49.6 66.2 Rinvoq 2,672 1,074 3,746 53.3 37.6 48.5 40.1 49.3 Humira 1,546 755 2,301 (62.6) (20.8) (54.7) (18.4) (54.3) Neuroscience 4,305 660 4,965 19.3 27.4 20.3 29.8 20.6 Vraylar 1,661 4 1,665 13.4 41.8 13.5 47.4 13.5 Botox Therapeutic 1,498 296 1,794 17.0 5.2 14.9 8.6 15.5 Ubrelvy 563 15 578 33.0 46.7 33.3 51.2 33.4 Qulipta 409 51 460 49.5 >100.0 63.6 >100.0 63.6 Vyalev 28 133 161 n/m >100.0 >100.0 >100.0 >100.0 Duodopa 40 153 193 (16.6) (14.9) (15.2) (14.0) (14.5) Other Neuroscience 106 8 114 (10.4) (12.7) (10.5) (8.1) (10.2) Oncology 2,053 1,256 3,309 2.4 7.1 4.2 9.1 5.0 Imbruvicab 1,072 420 1,492 (11.1) (9.7) (10.7) (9.7) (10.7) Venclexta 633 723 1,356 9.1 7.8 8.4 11.3 10.3 Elahere 303 35 338 57.5 n/m 75.5 n/m 75.5 Epkinlyc 43 78 121 61.8 >100.0 92.1 >100.0 93.3 Other Oncology 2 — 2 n/m n/m n/m n/m n/m Aesthetics 1,437 944 2,381 (12.3) (5.6) (9.8) (3.6) (9.0) Botox Cosmetic 705 543 1,248 (15.9) 3.7 (8.4) 5.8 (7.6) Juvederm Collection 180 311 491 (25.9) (21.5) (23.2) (19.8) (22.2) Other Aesthetics 552 90 642 (1.0) 11.7 0.6 14.5 0.9 Eye Care 447 573 1,020 (4.2) (5.3) (4.8) (1.8) (2.8) Ozurdex 60 188 248 (12.4) 0.8 (2.8) 2.7 (1.4) Lumigan/Ganfort 100 109 209 39.4 (11.0) 7.5 (7.7) 9.6 Alphagan/Combigan 26 70 96 (3.6) (13.1) (10.6) (8.5) (7.2) Other Eye Care 261 206 467 (12.8) (4.4) (9.3) 0.3 (7.3) Other Key Products 1,471 375 1,846 2.5 (12.0) (0.8) (10.4) (0.4) Mavyret 326 355 681 4.9 (12.8) (5.1) (11.2) (4.2) Creon 759 — 759 15.4 n/m 15.4 n/m 15.4 Linzess/Constella 386 20 406 (17.4) 7.0 (16.5) 9.7 (16.4) 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. c Epkinly U.S. revenues reflect profit sharing. International revenues reflect product revenues as well as profit sharing from certain international territories. n/m = not meaningful AbbVie Inc. Consolidated Statements of Earnings (Unaudited) (in millions, except per share data) Second Quarter Ended June 30 Six Months Ended June 30 2025 2024 2025 2024 Net revenues $ 15,423 $ 14,462 $ 28,766 $ 26,772 Cost of products sold 4,346 4,202 8,348 8,296 Selling, general and administrative 3,253 3,377 6,546 6,692 Research and development 2,131 1,948 4,198 3,887 Acquired IPR&D and milestones 823 937 1,071 1,101 Other operating income (24) — (24) — Total operating costs and expenses 10,529 10,464 20,139 19,976 Operating earnings 4,894 3,998 8,627 6,796 Interest expense, net 678 506 1,305 959 Net foreign exchange loss 23 1 27 5 Other expense, net 2,639 1,345 4,080 1,931 Earnings before income tax expense 1,554 2,146 3,215 3,901 Income tax expense 613 773 985 1,156 Net earnings 941 1,373 2,230 2,745 Net earnings attributable to noncontrolling interest 3 3 6 6 Net earnings attributable to AbbVie Inc. $ 938 $ 1,370 $ 2,224 $ 2,739 Diluted earnings per share attributable to AbbVie Inc. $ 0.52 $ 0.77 $ 1.24 $ 1.53 Adjusted diluted earnings per sharea $ 2.97 $ 2.65 $ 5.43 $ 4.96 Weighted-average diluted shares outstanding 1,771 1,771 1,772 1,772 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 (Unaudited) 1. Specified items impacted results as follows: Quarter Ended June 30, 2025 (in millions, except per share data) Earnings Diluted Pre-tax After-taxa EPS As reported (GAAP) $ 1,554 $ 938 $ 0.52 Adjusted for specified items: Intangible asset amortization 1,864 1,571 0.89 Change in fair value of contingent consideration 2,795 2,709 1.53 Other 91 60 0.03 As adjusted (non-GAAP) $ 6,304 $ 5,278 $ 2.97 a Represents net earnings attributable to AbbVie Inc. Specified items reflect the impact of applicable statutory tax rates. Reported GAAP earnings and adjusted non-GAAP earnings for the three months ended June 30, 2025 included acquired IPR&Dand milestone expense of $823 million on a pre-tax and $737 million on an after-tax basis, representing an unfavorable impact of $0.42 to both diluted EPS and adjusted diluted EPS. 2. The impact of the specified items by line item was as follows: Quarter Ended June 30, 2025 (in millions) Cost ofproducts sold SG&A R&D Other operatingincome Other expense,net As reported (GAAP) $ 4,346 $ 3,253 $ 2,131 $ (24) $ 2,639 Adjusted for specified items: Intangible asset amortization (1,864) — — — — Change in fair value of contingent consideration — — — — (2,795) Other (69) (14) (16) 24 (16) As adjusted (non-GAAP) $ 2,413 $ 3,239 $ 2,115 $ — $ (172) 3. The adjusted tax rate for the second quarter of 2025 was 16.2 percent, as detailed below: Quarter Ended June 30, 2025 (dollars in millions) Pre-tax earnings Income taxes Tax rate As reported (GAAP) $ 1,554 $ 613 39.4 % Specified items 4,750 410 8.6 % As adjusted (non-GAAP) $ 6,304 $ 1,023 16.2 % AbbVie Inc. Reconciliation of GAAP Reported to Non-GAAP Adjusted Information (Unaudited) 1. Specified items impacted results as follows: Quarter Ended June 30, 2024 (in millions, except per share data) Earnings Diluted Pre-tax After-taxa EPS As reported (GAAP) $ 2,146 $ 1,370 $ 0.77 Adjusted for specified items: Intangible asset amortization 1,947 1,651 0.93 Acquisition and integration costs 145 125 0.07 Change in fair value of contingent consideration 1,476 1,438 0.81 Other 90 126 0.07 As adjusted (non-GAAP) $ 5,804 $ 4,710 $ 2.65 a Represents net earnings attributable to AbbVie Inc. Specified items reflect the impact of applicable statutory tax rates. Acquisition and integration costs primarily reflect costs related to the ImmunoGen acquisition. Reported GAAP earnings and adjusted non-GAAP earnings for the three months ended June 30, 2024 included acquired IPR&Dand milestone expense of $937 million on a pre-tax and $924 million on an after-tax basis, representing an unfavorable impactof $0.52 to both diluted EPS and adjusted diluted EPS. 2. The impact of the specified items by line item was as follows: Quarter Ended June 30, 2024 (in millions) Cost of products sold SG&A R&D Other expense,net As reported (GAAP) $ 4,202 $ 3,377 $ 1,948 $ 1,345 Adjusted for specified items: Intangible asset amortization (1,947) — — — Acquisition and integration costs (79) (35) (31) — Change in fair value of contingent consideration — — — (1,476) Other (41) (27) — (22) As adjusted (non-GAAP) $ 2,135 $ 3,315 $ 1,917 $ (153) 3. The adjusted tax rate for the second quarter of 2024 was 18.8 percent, as detailed below: Quarter Ended June 30, 2024 (dollars in millions) Pre-tax earnings Income taxes Tax rate As reported (GAAP) $ 2,146 $ 773 36.0 % Specified items 3,658 318 8.7 % As adjusted(non-GAAP) $ 5,804 $ 1,091 18.8 % AbbVie Inc. Reconciliation of GAAP Reported to Non-GAAP Adjusted Information (Unaudited) 1. Specified items impacted results as follows: Six Months Ended June 30, 2025 (in millions, except per share data) Earnings Diluted Pre-tax After-taxa EPS As reported (GAAP) $ 3,215 $ 2,224 $ 1.24 Adjusted for specified items: Intangible asset amortization 3,722 3,145 1.78 Change in fair value of contingent consideration 4,313 4,186 2.36 Other 153 93 0.05 As adjusted (non-GAAP) $ 11,403 $ 9,648 $ 5.43 a Represents net earnings attributable to AbbVie Inc. Specified items reflect the impact of applicable statutory tax rates. Reported GAAP earnings and adjusted non-GAAP earnings for the six months ended June 30, 2025 included acquired IPR&D and milestones expense of $1.1 billion on a pre-tax and $975 million on an after-tax basis, representing an unfavorable impactof $0.55 to both diluted EPS and adjusted diluted EPS. 2. The impact of the specified items by line item was as follows: Six Months Ended June 30, 2025 (in millions) Cost of products sold SG&A R&D Otheroperating income Other expense,net As reported (GAAP) $ 8,348 $ 6,546 $ 4,198 $ (24) $ 4,080 Adjusted for specified items: Intangible asset amortization (3,722) — — — — Change in fair value of contingent consideration — — — — (4,313) Other (97) (27) (32) 24 (21) As adjusted (non-GAAP) $ 4,529 $ 6,519 $ 4,166 $ — $ (254) 3. The adjusted tax rate for the first six months of 2025 was 15.3 percent, as detailed below: Six Months Ended June 30, 2025 (dollars in millions) Pre-tax earnings Income taxes Tax rate As reported (GAAP) $ 3,215 $ 985 30.6 % Specified items 8,188 764 9.3 % As adjusted (non-GAAP) $ 11,403 $ 1,749 15.3 % AbbVie Inc. Reconciliation of GAAP Reported to Non-GAAP Adjusted Information (Unaudited) 1. Specified items impacted results as follows: Six Months Ended June 30, 2024 (in millions, except per share data) Earnings Diluted Pre-tax After-taxa EPS As reported (GAAP) $ 3,901 $ 2,739 $ 1.53 Adjusted for specified items: Intangible asset amortization 3,838 3,254 1.84 Acquisition and integration costs 656 611 0.34 Change in fair value of contingent consideration 2,136 2,081 1.17 Other 111 145 0.08 As adjusted (non-GAAP) $ 10,642 $ 8,830 $ 4.96 a Represents net earnings attributable to AbbVie Inc. Specified items reflect the impact of applicable statutory tax rates. Acquisition and integration costs primarily reflect costs related to the ImmunoGen acquisition. Reported GAAP earnings and adjusted non-GAAP earnings for the six months ended June 30, 2024 included acquired IPR&Dand milestones expense of $1.1 billion on a pre-tax and after-tax basis, representing an unfavorable impact of $0.60 to bothdiluted EPS and adjusted diluted EPS. 2. The impact of the specified items by line item was as follows: Six Months Ended June 30, 2024 (in millions) Cost of productssold SG&A R&D Interestexpense, net Otherexpense, net As reported (GAAP) $ 8,296 $ 6,692 $ 3,887 $ 959 $ 1,931 Adjusted for specified items: Intangible asset amortization (3,838) — — — — Acquisition and integration costs (158) (315) (159) (24) — Change in fair value of contingent consideration — — — — (2,136) Other (57) (30) — — (24) As adjusted (non-GAAP) $ 4,243 $ 6,347 $ 3,728 $ 935 $ (229) 3. The adjusted tax rate for the first six months of 2024 was 17.0 percent, as detailed below: Six Months Ended June 30, 2024 (dollars in millions) Pre-tax earnings Income taxes Tax rate As reported (GAAP) $ 3,901 $ 1,156 29.6 % Specified items 6,741 650 9.6 % As adjusted (non-GAAP) $ 10,642 $ 1,806 17.0 % SOURCE AbbVie For more information Contact us » Subscribe for email alerts Sign up Subscription management We also welcome the opportunity to hear from you in these social channels, but remember we work in a highly-regulated industry with unique legal considerations. Before engaging, please read and adhere to our established community guidelines for each channel. View our social media channel guidelines » AbbVie.com | Site Map | Terms of Use | Privacy Notice | Consumer Health Data Privacy Notice | Cookies Settings | Your Privacy Choices Copyright © 2025 AbbVie Inc. North Chicago, Illinois, U.S.A. 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