Humira Drives AbbVie Q3 Sales
AbbVie Reports Third-Quarter 2013 Financial Results
Oct 25, 2013
NORTH CHICAGO, Ill., Oct. 25, 2013 /PRNewswire/ --
- Reports Third-Quarter Adjusted EPS of $0.82, Above Previous Guidance Range; GAAP EPS of $0.60
- Raises 2013 Adjusted EPS Guidance to $3.11-$3.13, GAAP EPS Guidance of $2.54-$2.56
- Delivers Revenue of $4.658 Billion, an Increase of 3.3 Percent (Up 3.6 Percent Excluding Foreign Exchange); Revenue Up 10.9 Percent Excluding Exchange and TriCor/Trilipix Due to Loss of Exclusivity
- Revenue Growth Reflects 19.1 Percent Global Sales Growth from HUMIRA and Strong Growth from Other Products Including Synthroid, Creon, Zemplar and Duodopa
- Strong R&D Investment Supports Pipeline Advancements Including the Initiation of a Large Single-Agent Study of ABT-199 in CLL, Start of a Second Phase 3 Study of Elagolix in Endometriosis, and Significant Progress Toward the Completion of our Comprehensive Global Phase 3 HCV Program
- Continues to Enhance Early-Stage Pipeline with Two New Collaborations in Inflammatory Diseases and Cystic Fibrosis
AbbVie (NYSE: ABBV) today announced financial results for the third quarter ended Sept. 30, 2013.
"Our third-quarter performance demonstrates the strength and durability of our product portfolio and the continued execution of our key strategic priorities as an independent biopharmaceutical company," said Richard A. Gonzalez, chairman and chief executive officer, AbbVie. "Our mid- to late-stage pipeline contains a number of potentially significant opportunities, and we look forward to a series of milestones across our pipeline in the coming months."
Worldwide sales were $4.658 billion in the third quarter, up 3.3 percent. On an operational basis, sales increased 3.6 percent, excluding a 0.3 percent unfavorable impact from foreign exchange rate fluctuations. Sales increased in the quarter despite the decline in TriCor/Trilipix sales due to the loss of exclusivity. Excluding TriCor/Trilipix sales and foreign exchange, sales increased 10.9 percent in the quarter.
Sales growth was driven by the continued strength of HUMIRA. Global HUMIRA sales increased 19.1 percent on both a reported and operational basis. U.S. HUMIRA sales grew 22.3 percent. Total company sales growth was also driven by strong growth from other products including Synthroid, Creon, Zemplar and Duodopa.
Third-quarter adjusted gross margin ratio was 79.7 percent, excluding intangible asset amortization and other specified items. Gross margin strength in the quarter was driven by operational efficiencies and product mix, including strong HUMIRA sales and better-than-expected lipid performance despite loss of exclusivity. The gross margin ratio under U.S. generally accepted accounting principles (GAAP) was 76.6 percent.
Adjusted selling, general and administrative (SG&A) expense was 26.1 percent of sales in the third quarter, reflecting continued investment in our growth brands. On a GAAP basis, SG&A was 27.1 percent of sales.
Adjusted research and development (R&D) was 15.2 percent of sales in the quarter, reflecting funding actions in support of our emerging mid- and late-stage pipeline assets and the continued pursuit of additional HUMIRA indications. On a GAAP basis, R&D was 15.3 percent of sales.
Net interest expense was $69 million, and the adjusted tax rate was 22.3 percent in the quarter. On a GAAP basis, the third-quarter tax rate was 25.0 percent.
Third-quarter diluted earnings per share were $0.60 on a GAAP basis. Adjusted diluted earnings per share, excluding intangible asset amortization expense and other specified items, were $0.82, above the company's previous guidance range.
Posted: October 2013