EX-99.1 2 abbv-20241231xexhibit991.htm EX-99.1 Document


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PRESS RELEASE

 AbbVie Reports Full-Year and Fourth-Quarter 2024 Financial Results

•Reports Full-Year Diluted EPS of $2.39 on a GAAP Basis, a Decrease of 12.1 Percent; Adjusted Diluted EPS of $10.12, a Decrease of 8.9 Percent; These Results Include an Unfavorable Impact of $1.52 Per Share Related to 2024 Acquired IPR&D and Milestones Expense

•Delivers Full-Year Net Revenues of $56.334 Billion, an Increase of 3.7 Percent on a Reported Basis and 4.6 Percent on an Operational Basis

•Full-Year Global Net Revenues from the Immunology Portfolio Were $26.682 Billion, an Increase of 2.1 Percent on a Reported Basis, or 2.9 Percent on an Operational Basis; Global Humira Net Revenues Were $8.993 Billion; Global Skyrizi Net Revenues Were $11.718 Billion; Global Rinvoq Net Revenues Were $5.971 Billion

•Full-Year Global Net Revenues from the Oncology Portfolio Were $6.555 Billion, an Increase of 10.8 Percent on a Reported Basis, or 12.0 Percent on an Operational Basis; Global Imbruvica Net Revenues Were $3.347 Billion; Global Venclexta Net Revenues Were $2.583 Billion

•Full-Year Global Net Revenues from the Neuroscience Portfolio Were $8.999 Billion, an Increase of 16.6 Percent on a Reported Basis, or 16.9 Percent on an Operational Basis; Global Botox Therapeutic Net Revenues Were $3.283 Billion; Global Vraylar Net Revenues Were $3.267 Billion; Combined Global Ubrelvy and Qulipta Net Revenues were $1.664 Billion

•Full-Year Global Net Revenues from the Aesthetics Portfolio Were $5.176 Billion, a Decrease of 2.2 Percent on a Reported Basis, or 0.6 Percent on an Operational Basis; Global Botox Cosmetic Net Revenues Were $2.720 Billion; Global Juvederm Net Revenues Were $1.177 Billion

•Reports Fourth-Quarter Diluted Loss Per Share of $0.02 on a GAAP Basis, Inclusive of the Recent Partial Intangible Asset Impairment Charge Related to Emraclidine; Adjusted Diluted EPS of $2.16; These Results Include an Unfavorable Impact of $0.88 Per Share Related to Fourth-Quarter 2024 Acquired IPR&D and Milestones Expense

•Delivers Fourth-Quarter Net Revenues of $15.102 Billion, an Increase of 5.6 Percent on a Reported Basis and 6.1 Percent on an Operational Basis

•Provides 2025 Adjusted Diluted EPS Guidance Range of $12.12 to $12.32; Excludes Any Unfavorable Impact Related to Acquired IPR&D and Milestones Expense

•Reaffirms Expectations for High Single-Digit Compound Annual Revenue Growth Rate through 2029; Raises 2027 Combined Sales Outlook for Skyrizi and Rinvoq to More Than $31 Billion; Updates Outlook for Aesthetics to Deliver High Single-Digit Compound Annual Revenue Growth Rate from 2025 through 2029

NORTH CHICAGO, Ill., January 31, 2025 – AbbVie (NYSE:ABBV) announced financial results for the fourth quarter and full year ended December 31, 2024.

"2024 was a year of significant progress for AbbVie. Our growth platform delivered outstanding results, we advanced our pipeline with key regulatory approvals and promising data, and we strengthened our business through strategic transactions," said Robert A. Michael, chief executive officer, AbbVie. "We are entering 2025 with significant momentum and expect net revenues to exceed their previous peak in just the second full year following the U.S. Humira loss of exclusivity."
Note: "Operational" comparisons are presented at constant currency rates that reflect comparative local currency net revenues at the prior year's foreign exchange rates.

Fourth-Quarter Results
•Worldwide net revenues were $15.102 billion, an increase of 5.6 percent on a reported basis, or 6.1 percent on an operational basis.
•Global net revenues from the immunology portfolio were $7.294 billion, an increase of 4.9 percent on a reported basis, or 5.3 percent on an operational basis.
◦Global Humira net revenues of $1.682 billion decreased 49.1 percent on a reported basis, or 48.7 percent on an operational basis. U.S. Humira net revenues were $1.246 billion, a decrease of 54.5 percent. Internationally, Humira net revenues were $436 million, a decrease of 22.7 percent on a reported basis, or 20.5 percent on an operational basis.
◦Global Skyrizi net revenues were $3.778 billion, an increase of 57.7 percent on a reported basis, or 57.9 percent on an operational basis.
◦Global Rinvoq net revenues were $1.834 billion, an increase of 46.2 percent on a reported basis, or 47.1 percent on an operational basis.
•Global net revenues from the oncology portfolio were $1.691 billion, an increase of 12.0 percent on a reported basis, or 12.9 percent on an operational basis.
◦Global Imbruvica net revenues were $848 million, a decrease of 6.2 percent, with U.S. net revenues of $625 million and international profit sharing of $223 million.
◦Global Venclexta net revenues were $655 million, an increase of 11.0 percent on a reported basis, or 13.0 percent on an operational basis.
◦Global Elahere net revenues were $148 million.
•Global net revenues from the neuroscience portfolio were $2.509 billion, an increase of 19.8 percent on a reported basis, or 19.9 percent on an operational basis.
◦Global Botox Therapeutic net revenues were $873 million, an increase of 12.5 percent on a reported basis, or 13.0 percent on an operational basis.
◦Global Vraylar net revenues were $924 million, an increase of 17.1 percent.
◦Global Ubrelvy net revenues were $303 million, an increase of 29.6 percent.
◦Global Qulipta net revenues were $201 million, an increase of 76.4 percent on a reported basis, or 76.2 percent on an operational basis.
•Global net revenues from the aesthetics portfolio were $1.298 billion, a decrease of 5.2 percent on a reported basis, or 4.4 percent on an operational basis.
◦Global Botox Cosmetic net revenues were $687 million, a decrease of 4.2 percent on a reported basis, or 3.4 percent on an operational basis.
◦Global Juvederm net revenues were $279 million, a decrease of 16.3 percent on a reported basis, or 15.1 percent on an operational basis.
•On a GAAP basis, the gross margin ratio in the fourth quarter was 70.9 percent. The adjusted gross margin ratio was 83.8 percent.
•On a GAAP basis, selling, general and administrative (SG&A) expense was 25.5 percent of net revenues. The adjusted SG&A expense was 23.6 percent of net revenues.
•On a GAAP basis, research and development (R&D) expense was 44.9 percent of net revenues. The adjusted R&D expense was 15.1 percent of net revenues.
•Acquired IPR&D and milestones expense was 10.4 percent of net revenues.
•On a GAAP basis, the operating margin in the fourth quarter was negative 9.9 percent. The adjusted operating margin was 34.7 percent.
•Net interest expense was $610 million.
•On a GAAP basis, the tax rate in the quarter was 99.0 percent. The adjusted tax rate was 20.2 percent.
•Diluted loss per share in the fourth quarter was $0.02 on a GAAP basis, inclusive of the recent partial intangible asset impairment charge related to emraclidine. Adjusted diluted EPS, excluding specified items, was $2.16. These results include an unfavorable impact of $0.88 per share related to acquired IPR&D and milestones expense.
Note: "Operational" comparisons are presented at constant currency rates that reflect comparative local currency net revenues at the prior year's foreign exchange rates.
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Recent Events

•AbbVie announced the European Commission (EC) granted marketing authorization for Elahere (mirvetuximab soravtansine) for the treatment of adult patients with folate receptor-alpha (FRα) positive, platinum-resistant high grade serous epithelial ovarian, fallopian tube or primary peritoneal cancer who have received one to three prior systemic treatment regimens. Elahere is the first novel therapy approved in the European Union (EU) specifically for patients with FRα positive, platinum-resistant ovarian cancer.

•At the American Society of Hematology (ASH) Annual Meeting, AbbVie announced updated clinical trial results that showed Epkinly (epcoritamab) combination therapy demonstrated high response rates in adult patients with relapsed or refractory (r/r) follicular lymphoma (FL). The company also announced new results from two ongoing clinical trials which showed Epkinly induced durable complete responses as monotherapy and combination treatment in patients with diffuse large B-cell lymphoma (DLBCL). Epkinly is being co-developed by AbbVie and Genmab.

•AbbVie and EvolveImmune Therapeutics, an immuno-oncology company developing next-generation biotherapeutics to overcome the therapeutic challenges of cancer cell resistance to current immunotherapies, announced a collaboration and option-to-license agreement to develop multispecific biologics for multiple targets in oncology. The discovery partnership will leverage AbbVie’s oncology expertise and EvolveImmune's T-cell engager platform to develop novel antibody-based therapies for solid and hematologic malignancies.

•AbbVie and Simcere Zaiming announced a partnership to develop a novel trispecific antibody candidate in multiple myeloma (MM). This option-to-license agreement will develop SIM0500, an investigational new drug candidate that is currently in Phase 1 clinical trials in patients with r/r MM.

•AbbVie and Neomorph announced a collaboration and license agreement that will leverage AbbVie’s drug development expertise and Neomorph’s leading molecular glue discovery platform to develop novel molecular glue degraders for multiple targets across oncology and immunology.

•AbbVie announced that it completed its acquisition of Nimble Therapeutics, strengthening AbbVie's pipeline and R&D capabilities. The transaction includes Nimble’s lead asset, an investigational oral peptide IL23R inhibitor in preclinical development for the treatment of psoriasis (PsO) as well as Nimble's peptide synthesis, screening, and optimization platform used to help drive rapid discovery and optimization of peptide candidates for a range of targets.

•AbbVie announced positive topline results from its pivotal Phase 3 TEMPO-2 trial evaluating tavapadon as a flexible-dose monotherapy in early Parkinson's disease (PD). In the study, tavapadon met the primary endpoint, demonstrating a statistically significant improvement from baseline in the Movement Disorder Society - Unified Parkinson’s Disease Rating Scale (MDS-UPDRS) Parts II and III combined score at week 26. Tavapadon also met the key secondary endpoint, demonstrating statistically significant improvement from baseline in the MDS-UPDRS Part II score. Tavapadon has demonstrated positive results across all three Phase 3 TEMPO trials and AbbVie remains on track to submit a New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA) later this year.

•AbbVie announced that its two Phase 2 EMPOWER trials investigating emraclidine as a once-daily, oral monotherapy treatment for adults with schizophrenia who are experiencing an acute exacerbation of psychotic symptoms, did not meet their primary endpoint of showing a statistically significant reduction (improvement) in the change from baseline in the Positive and Negative Syndrome Scale (PANSS) total score compared to the placebo group at week 6. Following the results of these trials, AbbVie began an evaluation of the emraclidine intangible asset for impairment which resulted in a significant decrease in the estimated future cash flows for the product. Based on the revised cash flows, the company recorded a non-cash after-tax intangible asset impairment charge of $3.5 billion. AbbVie continues to evaluate information with respect to the Cerevel-related clinical development programs and will monitor the remaining intangible assets of $3.6 billion.




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Recent Events (Continued)

•AbbVie announced that it completed its acquisition of Aliada Therapeutics. The transaction strengthens AbbVie’s neuroscience pipeline and R&D capabilities with the addition of a potential best-in-class disease-modifying therapy for Alzheimer's disease (AD), ALIA-1758, and novel blood-brain barrier (BBB)-crossing technology.


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Full-Year 2025 Outlook
AbbVie is issuing its adjusted diluted EPS guidance for the full-year 2025 of $12.12 to $12.32. The company's 2025 adjusted diluted EPS guidance excludes any impact from acquired IPR&D and milestones that may be incurred during 2025, as both cannot be reliably forecasted.
Long-Term Outlook
AbbVie is reaffirming its expectations for a high single-digit compound annual revenue growth rate through 2029. This guidance assumes 2024 as the base year in the compound annual growth rate calculation.

AbbVie is raising its long-term outlook for Skyrizi and Rinvoq revenues. The company now expects combined Skyrizi and Rinvoq 2027 revenues of more than $31 billion, an increase of approximately $4 billion compared to previous guidance for combined revenues of more than $27 billion in 2027. This guidance assumes Skyrizi revenues of more than $20 billion and Rinvoq revenues of more than $11 billion in 2027.

AbbVie is also updating its outlook for aesthetics revenues. The company now expects a high single-digit compound annual revenue growth rate for aesthetics through 2029. This guidance assumes 2025 as the base year in the compound annual growth rate calculation.
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, oncology, neuroscience 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 fourth-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 2024 and 2023 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.
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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, 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 2023 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

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AbbVie Inc.
Key Product Revenues
Quarter Ended December 31, 2024
(Unaudited)
    % Change vs. 4Q23
Net Revenues (in millions)Reported
Operationala
U.S.Int’l.TotalU.S.Int’l.TotalInt’l.Total
NET REVENUES
$11,734 $3,368 $15,102 5.6%5.6%5.6%7.8%6.1%
Immunology5,905 1,389 7,294 2.217.84.920.25.3
Humira1,246 436 1,682 (54.5)(22.7)(49.1)(20.5)(48.7)
Skyrizi3,312 466 3,778 57.361.157.762.457.9
Rinvoq1,347 487 1,834 45.049.546.253.147.1
Oncology1,102 589 1,691 13.49.412.011.812.9
Imbruvicab
625 223 848 (8.6)1.2(6.2)1.2(6.2)
Venclexta313 342 655 13.09.311.013.213.0
Elahere146 2 148 n/mn/mn/mn/mn/m
Epkinlyc
18 22 40 48.9>100.0>100.0>100.0>100.0
Aesthetics839 459 1,298 (5.0)(5.6)(5.2)(3.2)(4.4)
Botox Cosmetic429 258 687 (5.2)(2.5)(4.2)(0.3)(3.4)
Juvederm Collection120 159 279 (22.5)(10.9)(16.3)(8.7)(15.1)
Other Aesthetics290 42 332 5.2(2.3)4.21.54.7
Neuroscience2,210 299 2,509 18.828.419.829.319.9
Botox Therapeutic730 143 873 12.413.212.516.313.0
Vraylar922 2 924 17.125.817.126.417.1
Duodopa24 84 108 2.8(8.1)(5.8)(9.7)(7.0)
Ubrelvy296 7 303 28.965.329.666.229.6
Qulipta186 15 201 65.7>100.076.4>100.076.2
Other Neuroscience52 48 100 (11.7)>100.050.9>100.050.4
Eye Care358 288 646 12.87.310.29.811.4
Ozurdex36 84 120 (3.2)3.01.13.51.4
Lumigan/Ganfort58 61 119 83.90.929.42.230.2
Alphagan/Combigan41 37 78 33.66.819.210.221.0
Restasis102 12 114 (13.7)14.9(11.3)19.7(10.9)
Other Eye Care121 94 215 20.915.418.420.320.6
Other Key Products748 164 912 (3.8)(14.1)(5.8)(13.9)(5.8)
Mavyret137 154 291 7.8(15.4)(5.8)(15.1)(5.6)
Creon388 — 388 3.3n/m3.3n/m3.3
Linzess/Constella223 10 233 (18.7)11.0(17.8)10.3(17.8)
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
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AbbVie Inc.
Key Product Revenues
Twelve Months Ended December 31, 2024
(Unaudited)
% Change vs. 12M23
Net Revenues (in millions)Reported
Operationala
U.S.Int’l.TotalU.S.Int’l.TotalInt’l.Total
NET REVENUES
$43,029 $13,305 $56,334 2.7%7.0%3.7%11.1%4.6%
Immunology21,487 5,195 26,682 (1.2)18.12.123.12.9
Humira7,142 1,851 8,993 (41.3)(17.5)(37.6)(13.2)(36.9)
Skyrizi10,086 1,632 11,718 49.361.650.965.451.4
Rinvoq4,259 1,712 5,971 50.849.650.457.052.5
Oncology4,219 2,336 6,555 11.79.310.812.512.0
Imbruvicab
2,448 899 3,347 (8.1)(3.5)(6.9)(3.5)(6.9)
Venclexta1,234 1,349 2,583 13.512.312.918.015.9
Elaherec
477 2 479 n/mn/mn/mn/mn/m
Epkinlyd
60 86 146 >100.0>100.0>100.0>100.0>100.0
Aesthetics3,269 1,907 5,176 0.6(6.7)(2.2)(2.5)(0.6)
Botox Cosmetic1,682 1,038 2,720 0.72.71.46.72.9
Juvederm Collection469 708 1,177 (9.6)(17.6)(14.6)(13.4)(12.0)
Other Aesthetics1,118 161 1,279 5.5(7.1)3.7(1.0)4.6
Neuroscience7,907 1,092 8,999 16.517.716.620.116.9
Botox Therapeutic2,718 565 3,283 9.89.89.814.010.5
Vraylar3,260 7 3,267 18.457.818.458.618.4
Duodopa96 351 447 (1.8)(5.3)(4.6)(5.4)(4.7)
Ubrelvy981 25 1,006 22.1>100.023.4>100.023.4
Qulipta628 30 658 55.3>100.061.3>100.061.3
Other Neuroscience224 114 338 (11.6)>100.022.4>100.022.7
Eye Care1,064 1,178 2,242 (15.3)1.5(7.2)5.2(5.4)
Ozurdex138 356 494 (4.1)8.34.510.76.2
Lumigan/Ganfort187 242 429 7.5(6.4)(0.9)(3.9)0.6
Alphagan/Combigan95 153 248 (21.8)1.5(8.8)7.6(5.4)
Restasis172 52 224 (55.2)(3.0)(48.7)2.1(48.1)
Other Eye Care472 375 847 8.91.55.56.17.6
Other Key Products2,894 754 3,648 (3.5)(6.5)(4.2)(3.9)(3.7)
Mavyret595 716 1,311 (9.7)(7.2)(8.3)(4.5)(6.9)
Creon1,383 — 1,383 9.1n/m9.1n/m9.1
Linzess/Constella916 38 954 (14.6)7.5(13.9)7.2(13.9)
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    Reflects partial year Elahere revenue based on the February 12, 2024 close date of the ImmunoGen acquisition.
d    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
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AbbVie Inc.
Consolidated Statements of Earnings
(Unaudited)

 
(in millions, except per share data)Fourth Quarter
Ended December 31		Twelve Months
Ended December 31
2024202320242023
Net revenues$15,102 $14,301 $56,334 $54,318 
Cost of products sold4,396 5,704 16,904 20,415 
Selling, general and administrative3,855 3,193 14,752 12,872 
Research and development
6,774 1,927 12,791 7,675 
Acquired IPR&D and milestones
1,574 282 2,757 778 
Other operating income, net(7)— (7)(179)
Total operating costs and expenses16,592 11,106 47,197 41,561 
Operating earnings (loss)(1,490)3,195 9,137 12,757 
Interest expense, net610 378 2,160 1,684 
Net foreign exchange loss19 49 21 146 
Other expense, net150 1,556 3,240 4,677 
Earnings (loss) before income tax expense(2,269)1,212 3,716 6,250 
Income tax expense (benefit)(2,246)388 (570)1,377 
Net earnings (loss)(23)824 4,286 4,873 
Net earnings (loss) attributable to noncontrolling interest(1)2 8 10 
Net earnings (loss) attributable to AbbVie Inc.$(22)$822 $4,278 $4,863 
Diluted earnings (loss) per share attributable to AbbVie Inc.$(0.02)$0.46 $2.39 $2.72 
Adjusted diluted earnings per sharea
$2.16 $2.79 $10.12 $11.11 
Weighted-average diluted shares outstanding1,769 1,772 1,773 1,773 
Adjusted weighted-average diluted shares outstandinga
1,773 1,772 1,773 1,773 

a    Refer to the Reconciliation of GAAP Reported to Non-GAAP Adjusted Information for further details. Weighted-average diluted shares outstanding includes the effect of dilutive securities. Due to the GAAP net loss in the fourth quarter ended December 31, 2024, certain shares issuable under stock-based compensation plans that were dilutive on a non-GAAP basis were excluded from the computation of GAAP diluted EPS because the effects would have been antidilutive.
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AbbVie Inc.
Reconciliation of GAAP Reported to Non-GAAP Adjusted Information
(Unaudited)
 
1.    Specified items impacted results as follows:
Quarter Ended December 31, 2024
(in millions, except per share data)Earnings (Loss)Diluted
Pre-tax
After-taxa
EPS
As reported (GAAP)$(2,269)$(22)$(0.02)
Adjusted for specified items:
Intangible asset amortization1,896 1,607 0.90 
Intangible asset impairment4,476 3,512 1.98 
Change in fair value of contingent consideration279 271 0.15 
Litigation matters173 136 0.08 
Income tax items— (1,869)(1.05)
Other258 209 0.12 
As adjusted (non-GAAP)$4,813 $3,844 $2.16 
 a Represents net earnings (loss) attributable to AbbVie Inc.
Intangible asset impairment reflects a partial after-tax impairment charge of $3.5 billion related to the emraclidine intangible asset acquired as part of the Cerevel Therapeutics acquisition. Income tax items primarily reflect an income tax benefit related to the settlement of income tax examinations, partially offset by changes in income tax reserves.
Reported GAAP earnings and adjusted non-GAAP earnings for the three months ended December 31, 2024 included acquired IPR&D and milestones expense of $1.6 billion on a pre-tax and after-tax basis, representing an unfavorable impact of $0.88 to both diluted EPS and adjusted diluted EPS.
2.    The impact of the specified items by line item was as follows:
 Quarter Ended December 31, 2024
(in millions)Cost of products soldSG&AR&DOther operating income, netOther expense, net
As reported (GAAP)$4,396 $3,855 $6,774 $(7)$150 
Adjusted for specified items:
Intangible asset amortization(1,896)— — — — 
Intangible asset impairment— — (4,476)— — 
Change in fair value of contingent consideration— — — — (279)
Litigation matters— (173)— — — 
Other(47)(121)(25)7 (72)
As adjusted (non-GAAP)$2,453 $3,561 $2,273 $— $(201)
3.    The adjusted tax rate for the fourth quarter of 2024 was 20.2 percent, as detailed below:
Quarter Ended December 31, 2024
(dollars in millions)Pre-tax earnings (loss)Income taxesTax rate
As reported (GAAP)$(2,269)$(2,246)99.0 %
Specified items7,082 3,216 45.4 %
As adjusted (non-GAAP)$4,813 $970 20.2 %

10


AbbVie Inc.
Reconciliation of GAAP Reported to Non-GAAP Adjusted Information
(Unaudited)
 
1.    Specified items impacted results as follows:
Quarter Ended December 31, 2023
(in millions, except per share data)EarningsDiluted
Pre-tax
After-taxa
EPS
As reported (GAAP)$1,212 $822 $0.46 
Adjusted for specified items:   
Intangible asset amortization1,889 1,584 0.89 
Intangible asset impairment1,405 1,166 0.66 
Acquisition and integration costs123 107 0.06 
Change in fair value of contingent consideration1,696 1,655 0.93 
Litigation matters(491)(386)(0.22)
Other156 11 0.01 
As adjusted (non-GAAP)$5,990 $4,959 $2.79 
 a Represents net earnings attributable to AbbVie Inc.
Intangible asset impairment primarily reflects a partial impairment charge related to the CoolSculpting intangible asset triggered by a strategic decision to reduce ongoing sales and marketing investment for the product. Litigation matters primarily includes income related to a favorable settlement of a litigation matter.
Reported GAAP earnings and adjusted non-GAAP earnings for the three months ended December 31, 2023 included acquired IPR&D and milestones expense of $282 million on a pre-tax and $264 million on an after-tax basis, representing an unfavorable impact of $0.15 to both diluted EPS and adjusted diluted EPS.
2.    The impact of the specified items by line item was as follows:
Quarter Ended December 31, 2023
(in millions)Cost of products soldSG&AR&DInterest expense, netOther expense, net
As reported (GAAP)$5,704 $3,193 $1,927 $378 $1,556 
Adjusted for specified items:
Intangible asset amortization(1,889)— — — — 
Intangible asset impairment(1,405)— — — — 
Acquisition and integration costs(24)(78)(6)(15)— 
Change in fair value of contingent consideration— — — — (1,696)
Litigation matters— 491 — — — 
Other(89)(66)1 — (2)
As adjusted (non-GAAP)
$2,297 $3,540 $1,922 $363 $(142)
3.    The adjusted tax rate for the fourth quarter of 2023 was 17.2 percent, as detailed below:
Quarter Ended December 31, 2023
(dollars in millions)Pre-tax earningsIncome taxesTax rate
As reported (GAAP)$1,212 $388 32.1 %
Specified items4,778 641 13.4 %
As adjusted (non-GAAP)
$5,990 $1,029 17.2 %

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AbbVie Inc.
Reconciliation of GAAP Reported to Non-GAAP Adjusted Information
(Unaudited)
 
1.    Specified items impacted results as follows:
Twelve Months Ended December 31, 2024
(in millions, except per share data)
EarningsDiluted
Pre-tax
After-taxa
EPS
As reported (GAAP)$3,716 $4,278 $2.39 
Adjusted for specified items:
Intangible asset amortization7,622 6,461 3.63 
Intangible asset impairment4,476 3,512 1.98 
Acquisition and integration costs1,061 978 0.55 
Change in fair value of contingent consideration3,771 3,673 2.07 
Litigation matters910 721 0.41 
Income tax items— (1,819)(1.02)
Other256 197 0.11 
As adjusted (non-GAAP)$21,812 $18,001 $10.12 
 a Represents net earnings attributable to AbbVie Inc.
Intangible asset impairment reflects a partial after-tax impairment charge of $3.5 billion related to the emraclidine intangible asset acquired as part of the Cerevel Therapeutics acquisition. Acquisition and integration costs primarily reflect costs related to the ImmunoGen and Cerevel Therapeutics acquisitions. Income tax items primarily reflect an income tax benefit related to the settlement of income tax examinations, partially offset by changes in income tax reserves. Litigation matters primarily include charges related to actual and potential settlements of litigation.
Reported GAAP earnings and adjusted non-GAAP earnings for the twelve months ended December 31, 2024 included acquired IPR&D and milestones expense of $2.8 billion on a pre-tax and $2.7 billion on an after-tax basis, representing an unfavorable impact of $1.52 to both diluted EPS and adjusted diluted EPS.
2.    The impact of the specified items by line item was as follows:
Twelve Months Ended December 31, 2024
(in millions)Cost of products soldSG&AR&DOther operating income, netInterest expense, netOther expense, net
As reported (GAAP)$16,904 $14,752 $12,791 $(7)$2,160 $3,240 
Adjusted for specified items:
Intangible asset amortization(7,622)— — — — — 
Intangible asset impairment— — (4,476)— — — 
Acquisition and integration costs(225)(554)(258)— (24)— 
Change in fair value of contingent consideration— — — — — (3,771)
Litigation matters— (910)— — — — 
Other(110)(54)(1)7 — (98)
As adjusted (non-GAAP)$8,947 $13,234 $8,056 $— $2,136 $(629)
3.    The adjusted tax rate for the full-year 2024 was 17.4 percent, as detailed below:
Twelve Months Ended December 31, 2024
(dollars in millions)Pre-tax earningsIncome taxesTax rate
As reported (GAAP)$3,716 $(570)(15.3)%
Specified items18,096 4,373 24.2 %
As adjusted (non-GAAP)$21,812 $3,803 17.4 %

12


AbbVie Inc.
Reconciliation of GAAP Reported to Non-GAAP Adjusted Information
(Unaudited)
 
1.    Specified items impacted results as follows:
 Twelve Months Ended December 31, 2023
(in millions, except per share data)
EarningsDiluted
 Pre-tax
After-taxa
EPS
As reported (GAAP)$6,250 $4,863 $2.72 
Adjusted for specified items:
Intangible asset amortization7,946 6,685 3.76 
Intangible asset impairment4,229 3,455 1.96 
Acquisition and integration costs161 122 0.07 
Change in fair value of contingent consideration5,128 5,003 2.81 
Litigation matters(485)(381)(0.22)
Other225 22 0.01 
As adjusted (non-GAAP)$23,454 $19,769 $11.11 
 a Represents net earnings attributable to AbbVie Inc.
Intangible asset impairment primarily reflects partial impairment charges related to the U.S. Imbruvica and CoolSculpting intangible assets. The Imbruvica impairment charge of $2.1 billion was triggered by selection of Imbruvica for price negotiation as part of the IRA of 2022 and the CoolSculpting impairment charge of $1.0 billion was triggered by a strategic decision to reduce ongoing sales and marketing investment for the product. Acquisition and integration costs primarily include costs related to the Allergan acquisition, including a one-time gain of $169 million related to the termination of a development liability associated with a previously divested product. Litigation matters primarily includes income related to a favorable settlement of a litigation matter.
Reported GAAP earnings and adjusted non-GAAP earnings for the twelve months ended December 31, 2023 included acquired IPR&D and milestones expense of $778 million on a pre-tax and $741 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:
Twelve Months Ended December 31, 2023
(in millions)Cost of products soldSG&AR&DOther operating income, netInterest expense, netOther expense, net
As reported (GAAP)$20,415 $12,872 $7,675 $(179)$1,684 $4,677 
Adjusted for specified items:
Intangible asset amortization(7,946)— — — — — 
Intangible asset impairment(3,599)— (630)— — 
Acquisition and integration costs(90)(212)(13)169 (15)— 
Change in fair value of contingent consideration— — — — — (5,128)
Litigation matters— 485 — — — — 
Other(134)(73)(3)10 — (25)
As adjusted (non-GAAP)$8,646 $13,072 $7,029 $— $1,669 $(476)
3.    The adjusted tax rate for the full-year 2023 was 15.7 percent, as detailed below:
Twelve Months Ended December 31, 2023
(dollars in millions)Pre-tax earningsIncome taxesTax rate
As reported (GAAP)$6,250 $1,377 22.0 %
Specified items17,204 2,298 13.4 %
As adjusted (non-GAAP)$23,454 $3,675 15.7 %

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