(State or other Jurisdiction | (Commission File Number) | (IRS Employer | ||
of Incorporation) | Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Exhibit No. | Exhibit | |
ABBVIE INC. | |||
Date: | November 1, 2019 | By: | /s/ Robert A. Michael |
Robert A. Michael | |||
Executive Vice President, | |||
Chief Financial Officer |
• | Reports Third-Quarter Diluted EPS of $1.26 on a GAAP Basis; Adjusted Diluted EPS of $2.33 |
• | Third-Quarter Net Revenues Were $8.479 Billion, an Increase of 3.0 Percent on a GAAP Basis, or 3.5 Percent Operationally |
• | Third-Quarter U.S. HUMIRA Net Revenues Were $3.887 Billion, an Increase of 9.6 Percent; Internationally, HUMIRA Net Revenues Were $1.049 Billion, a Decrease of 33.5 Percent on a Reported Basis, or 31.8 Percent Operationally, Due to Biosimilar Competition |
• | Third-Quarter Global Net Revenues From the Hematologic Oncology Portfolio Were $1.478 Billion, an Increase of 38.3 Percent on a Reported Basis, or 38.5 Percent Operationally; Third-Quarter Global IMBRUVICA Net Revenues Were $1.257 Billion, an Increase of 29.3 Percent, with U.S. Net Revenues of $1.042 Billion and International Profit Sharing of $215 Million; Global VENCLEXTA Net Revenues Were $221 Million |
• | Advances Pipeline with Regulatory Approval of RINVOQ for Moderate to Severe Rheumatoid Arthritis; Submits a New Drug Application for Elagolix for the Management of Heavy Menstrual Bleeding Associated with Uterine Fibroids |
• | Continues to Work Towards Regulatory Approvals for the Proposed Allergan Acquisition; Allergan Shareholders Approve Proposed Acquisition by AbbVie; AbbVie Expects to Close the Transaction in Early 2020 |
• | Updates 2019 GAAP Diluted EPS Guidance Range From $5.69 to $5.79 to $5.08 to $5.10, Representing Growth of 39.1 Percent at the Midpoint, Inclusive of a Non-cash Charge for SKYRIZI Contingent Consideration Following Regulatory Approvals in the Second Quarter and a Third-Quarter Impairment Charge Related to Intangible Assets Acquired as part of the 2016 Acquisition of Stemcentrx, Inc.; Raises 2019 Adjusted Diluted EPS Guidance Range From $8.82 to $8.92 to $8.90 to $8.92, Representing Growth of 12.6 Percent at the Midpoint |
• | Announces 2020 Dividend Increase of 10.3 Percent, Beginning with Dividend Payable in February 2020 |
• | Worldwide net revenues were $8.479 billion, an increase of 3.0 percent on a reported basis, or 3.5 percent operationally. |
• | Global HUMIRA net revenues of $4.936 billion decreased 3.7 percent on a reported basis, or 3.2 percent operationally. U.S. HUMIRA net revenues were $3.887 billion, an increase of 9.6 percent. Internationally, HUMIRA net revenues were $1.049 billion, a decrease of 33.5 percent on a reported basis, or 31.8 percent operationally, due to biosimilar competition. |
• | Global net revenues from the hematologic oncology portfolio were $1.478 billion, an increase of 38.3 percent on a reported basis, or 38.5 percent operationally. Global IMBRUVICA net revenues were $1.257 billion, an increase of 29.3 percent, with U.S. net revenues of $1.042 billion and international profit sharing of $215 million. Global VENCLEXTA net revenues were $221 million. |
• | Global HCV net revenues were $698 million, a decrease of 19.0 percent on a reported basis, or 18.6 percent operationally. In the U.S., HCV net revenues of $368 million decreased 17.0 percent in the quarter. Internationally, HCV net revenues of $330 million decreased 21.2 percent on a reported basis, or 20.4 percent operationally. |
• | On a GAAP basis, the gross margin ratio in the third quarter was 77.4 percent. The adjusted gross margin ratio was 82.0 percent. |
• | On a GAAP basis, selling, general and administrative expense was 19.5 percent of net revenues. The adjusted SG&A expense was 19.1 percent of net revenues. |
• | On a GAAP basis, research and development expense was 26.9 percent of net revenues. The adjusted R&D expense was 14.5 percent of net revenues, reflecting funding actions supporting all stages of our pipeline. |
• | On a GAAP basis, the operating margin in the third quarter was 30.9 percent. The adjusted operating margin was 48.4 percent. |
• | On a GAAP basis, net interest expense was $420 million. The adjusted net interest expense was $288 million. On a GAAP basis, the tax rate in the quarter was 5.9 percent. The adjusted tax rate was 8.8 percent. |
• | Diluted EPS in the third quarter was $1.26 on a GAAP basis, inclusive of an impairment charge related to intangible assets acquired as part of the 2016 acquisition of Stemcentrx, Inc. Adjusted diluted EPS, excluding specified items, was $2.33. |
• | AbbVie announced the U.S. Food and Drug Administration (FDA) approval of RINVOQ (upadacitinib) for the treatment of moderate to severe rheumatoid arthritis (RA) in adult patients who have had an inadequate response or intolerance to methotrexate. The approval is based on results from the SELECT Phase 3 program, one of the largest registrational Phase 3 programs in RA with approximately 4,400 patients evaluated across five studies. Additionally, the European Medicines Agency's Committee for Medicinal Products for Human Use adopted a positive opinion for RINVOQ, for the treatment of adult patients with moderate to severe active rheumatoid arthritis who have responded inadequately to, or who are intolerant to one or more disease-modifying anti-rheumatic drugs. Discovered and developed by AbbVie, RINVOQ marks the second FDA approval of a targeted immunomodulator therapy for AbbVie this year. |
• | AbbVie announced positive top-line results from its first Phase 3 clinical trial of RINVOQ in adult patients with active psoriatic arthritis. Results from the SELECT-PsA 2 study, which evaluated RINVOQ versus placebo in patients who did not adequately respond to treatment with one or more biologic DMARDs, showed that both doses of RINVOQ (15 mg and 30 mg) met the primary endpoint of ACR20 response at week 12. Key secondary endpoints were also achieved and included HAQ-DI, PASI75, minimal disease activity, ACR50 and ACR70. The safety profile was consistent with that of previous studies across indications, with no new safety signals detected. Detailed study results will be presented at an upcoming medical conference. |
• | AbbVie presented new long-term data showing a significant number of patients with moderate to severe plaque psoriasis treated with SKYRIZI (risankizumab) experienced complete skin clearance. At the World Congress of Dermatology (WCD), AbbVie presented data from the Phase 3 IMMhance study which showed 73 percent of patients achieved a static Physician Global Assessment (sPGA) score of clear or almost clear skin and 72 percent of patients achieved a Psoriasis Area and Severity Index (PASI) 100 score at week 94, among patients who achieved sPGA 0/1 at week 28. At the European Academy of Dermatology and Venereology (EADV), AbbVie presented data from the Phase 3 LIMMitless trial which showed that at approximately 2.5 years of treatment SKYRIZI provides durable maintenance of efficacy with 87 percent of patients achieving PASI 90, 61 percent achieving PASI 100 and 86 percent achieving a sPGA score of clear or almost clear skin. SKYRIZI is part of a collaboration between Boehringer Ingelheim (BI) and AbbVie, with AbbVie leading development and commercialization globally. |
• | AbbVie announced the FDA approval of MAVYRET (glecaprevir/pibrentasvir) to shorten the once-daily treatment duration from 12 to 8 weeks in treatment-naïve, compensated cirrhotic, chronic hepatitis C (HCV) patients across all genotypes. Mavyret was previously approved by the FDA as an 8-week, pan-genotypic treatment for treatment-naïve HCV patients without cirrhosis. In addition, the European Commission (EC) approved MAVIRET (glecaprevir/pibrentasvir) for 8 weeks of treatment in treatment-naïve patients with chronic HCV and compensated cirrhosis with genotype 1, 2, 4, 5 and 6. The label expansions were based on data from the Phase 3b EXPEDITION-8 study in which an overall 98 percent of patients achieved a sustained virologic response 12 weeks after treatment. |
• | AbbVie, in cooperation with Neurocrine Biosciences, Inc., announced the submission of a New Drug Application (NDA) to the FDA for elagolix, an investigational, orally administered gonadotropin-releasing hormone antagonist, for the management of heavy menstrual bleeding (HMB) associated with uterine fibroids in women. In two replicate Phase 3 clinical studies, elagolix demonstrated a statistically significant reduction in HMB, in combination with add-back therapy, compared to placebo. If approved by the FDA, elagolix will be an oral medical management treatment option for HMB associated with uterine fibroids. |
• | Following the closure of the MERU Phase 3 study evaluating Rovalpituzumab Tesirine (Rova-T) as a first-line maintenance therapy for advanced small-cell lung cancer, the termination of the Rova-T research and development program and an evaluation of the Stemcentrx-related intangible assets, AbbVie recorded an impairment charge related to intangible assets acquired as part of its 2016 acquisition of Stemcentrx, Inc. The after-tax net impact of this impairment and the related adjustment to contingent consideration liabilities was $823 million. With this impairment there is no remaining balance on Stemcentrx-related intangible assets. AbbVie continues to focus research and development efforts on other therapies in its oncology portfolio of investigational and marketed medicines. |
• | At the International Congress of Parkinson’s Disease and Movement Disorders, AbbVie presented data from 22 abstracts in Parkinson’s disease (PD) and other neurodegenerative disorders. Final data from the Phase 1b study evaluating the safety and tolerability of the investigational medicine ABBV-951 in patients with advanced PD demonstrated that ABBV-951 is safe and tolerable when delivered via 24-hour continuous subcutaneous infusion for 28 days and support future investigations of ABBV-951 as a potentially new treatment option for PD patients. |
• | AbbVie and Allergan continue to cooperate fully with regulators regarding AbbVie's proposed acquisition of Allergan and both companies received a Request for Additional Information (Second Request) from the Federal Trade Commission. Additionally, Allergan shareholders voted to approve the proposed acquisition with more than 99 percent of the votes cast at both a special court-ordered meeting of shareholders and at an extraordinary general meeting of shareholders in favor of the transaction. AbbVie and Allergan continue to expect to close the transaction in early 2020. |
• | Executed licensing and partnership collaboration transaction impacts and transactions expected to be executed in the next quarter are included. In line with AbbVie’s historical practices, management continues to evaluate and pursue opportunities for further partnership collaborations and in-licensing transactions. No material acquisitions or disposals are anticipated in 2019; |
• | There will be no material change in the operational strategy or current management of AbbVie during the year ending December 31, 2019 other than those already announced; |
• | There will be no major site closures or rationalization during the three-month forecast period to December 31, 2019 other than those already commenced; and |
• | Share repurchases and issuances are expected to be immaterial during the three-month forecast period to December 31, 2019. |
• | There will be no material supply chain, manufacturing and distribution disruptions and other business interruptions, including natural disasters or industrial disputes; |
• | There will be no material adverse events that affect AbbVie’s key products, including adverse regulatory and clinical findings or publications, product recalls, liability claims, or loss of patent protection; |
• | There will be no material changes to current litigation provisions due to a new or ongoing litigation claim; |
• | There will be no material change in general market, economic, competitive environments or levels of demand in countries in which AbbVie operates that would materially affect AbbVie’s business; |
• | There will be no material change to AbbVie customers’ agreements, rebates, or discount programs from those currently prevailing; |
• | There will be no changes in exchange rates, interest rates, bases of taxes, tax laws or interpretations, or legislative or regulatory requirements from those currently prevailing that would have a material impact on AbbVie’s operations or its accounting policies; |
• | There will be no material change to discount rate assumptions for calculating the fair value of contingent consideration from those currently prevailing; and |
• | There will be no intangible asset impairments due to unfavorable clinical study results or safety signals. |
Media: | Investors: |
Adelle Infante | Liz Shea |
(847) 938-8745 | (847) 935-2211 |
Todd Bosse | |
(847) 936-1182 | |
Jeffrey Byrne | |
(847) 938-2923 |
% Change vs. 3Q18 | ||||||||||||||
Net Revenues (in millions) | International | Total | ||||||||||||
U.S. | Int’l. | Total | U.S. | Operational | Reported | Operational | Reported | |||||||
ADJUSTED NET REVENUESa | $6,244 | $2,235 | $8,479 | 11.6% | (13.7)% | (15.3)% | 3.5% | 3.0% | ||||||
Immunology | 3,977 | 1,064 | 5,041 | 12.2 | (30.9) | (32.6) | (1.1) | (1.6) | ||||||
Humira | 3,887 | 1,049 | 4,936 | 9.6 | (31.8) | (33.5) | (3.2) | (3.7) | ||||||
Skyrizi | 76 | 15 | 91 | n/m | n/m | n/m | n/m | n/m | ||||||
Rinvoq | 14 | — | 14 | n/m | n/m | n/m | n/m | n/m | ||||||
Hematologic Oncology | 1,184 | 294 | 1,478 | 34.4 | 58.5 | 57.1 | 38.5 | 38.3 | ||||||
Imbruvicab | 1,042 | 215 | 1,257 | 28.3 | 34.5 | 34.5 | 29.3 | 29.3 | ||||||
Venclexta | 142 | 79 | 221 | >100.0 | >100.0 | >100.0 | >100.0 | >100.0 | ||||||
HCV | 368 | 330 | 698 | (17.0) | (20.4) | (21.2) | (18.6) | (19.0) | ||||||
Mavyret | 368 | 327 | 695 | (17.0) | (16.4) | (17.2) | (16.7) | (17.1) | ||||||
Viekira | — | 3 | 3 | n/m | (88.6) | (88.1) | (88.5) | (88.0) | ||||||
Other Key Products | 780 | 399 | 1,179 | (1.9) | 11.3 | 9.6 | 2.2 | 1.7 | ||||||
Creon | 265 | — | 265 | 11.2 | n/a | n/a | 11.2 | 11.2 | ||||||
Lupron | 187 | 43 | 230 | 8.6 | 6.2 | 3.7 | 8.2 | 7.7 | ||||||
Synthroid | 197 | — | 197 | 2.3 | n/a | n/a | 2.3 | 2.3 | ||||||
Synagis | — | 132 | 132 | n/a | 35.4 | 36.2 | 35.4 | 36.2 | ||||||
Duodopa | 26 | 91 | 117 | 36.4 | 9.6 | 5.8 | 14.4 | 11.3 | ||||||
Sevoflurane | 18 | 66 | 84 | (2.5) | (0.5) | (3.1) | (0.9) | (3.0) | ||||||
Kaletra | 7 | 67 | 74 | (48.7) | (6.1) | (7.2) | (13.9) | (14.8) | ||||||
AndroGel | 53 | — | 53 | (61.1) | n/a | n/a | (61.1) | (61.1) | ||||||
Orilissa | 27 | — | 27 | >100.0 | n/m | n/m | >100.0 | >100.0 |
a | Adjusted net revenues exclude specified items. Refer to the Reconciliation of GAAP Reported to Non-GAAP Adjusted Information for further details. Percentage change is calculated using adjusted net revenues. |
b | Reflects profit sharing for Imbruvica international revenues. |
% Change vs. 9M18 | ||||||||||||||
Net Revenues (in millions) | International | Total | ||||||||||||
U.S. | Int’l. | Total | U.S. | Operational | Reported | Operational | Reported | |||||||
ADJUSTED NET REVENUESa | $17,478 | $7,084 | $24,562 | 10.4% | (14.0)% | (17.6)% | 1.8% | 0.5% | ||||||
Immunology | 11,027 | 3,378 | 14,405 | 9.5 | (28.1) | (31.7) | (2.9) | (4.1) | ||||||
Humira | 10,895 | 3,357 | 14,252 | 8.2 | (28.5) | (32.1) | (3.9) | (5.1) | ||||||
Skyrizi | 118 | 21 | 139 | n/m | n/m | n/m | n/m | n/m | ||||||
Rinvoq | 14 | — | 14 | n/m | n/m | n/m | n/m | n/m | ||||||
Hematologic Oncology | 3,121 | 798 | 3,919 | 36.5 | 56.0 | 54.2 | 40.1 | 39.8 | ||||||
Imbruvicab | 2,757 | 621 | 3,378 | 29.5 | 36.5 | 36.5 | 30.7 | 30.7 | ||||||
Venclexta | 364 | 177 | 541 | >100.0 | >100.0 | >100.0 | >100.0 | >100.0 | ||||||
HCV | 1,167 | 1,130 | 2,297 | (3.5) | (23.9) | (26.9) | (14.9) | (16.6) | ||||||
Mavyret | 1,167 | 1,098 | 2,265 | (3.2) | (19.3) | (22.3) | (11.9) | (13.5) | ||||||
Viekira | — | 32 | 32 | (100.0) | (72.5) | (75.4) | (73.7) | (76.6) | ||||||
Other Key Products | 2,239 | 1,264 | 3,503 | (3.2) | 1.1 | (3.4) | (1.7) | (3.3) | ||||||
Creon | 749 | — | 749 | 12.4 | n/a | n/a | 12.4 | 12.4 | ||||||
Lupron | 546 | 122 | 668 | 3.1 | 2.7 | (3.3) | 3.1 | 1.9 | ||||||
Synthroid | 582 | — | 582 | 2.6 | n/a | n/a | 2.6 | 2.6 | ||||||
Synagis | — | 457 | 457 | n/a | 2.2 | (1.0) | 2.2 | (1.0) | ||||||
Duodopa | 72 | 271 | 343 | 25.5 | 10.7 | 4.5 | 13.4 | 8.3 | ||||||
Sevoflurane | 53 | 214 | 267 | (2.2) | (9.8) | (14.8) | (8.4) | (12.5) | ||||||
Kaletra | 30 | 199 | 229 | (27.7) | (1.0) | (5.1) | (5.5) | (8.9) | ||||||
AndroGel | 149 | — | 149 | (62.2) | n/a | n/a | (62.2) | (62.2) | ||||||
Orilissa | 58 | 1 | 59 | >100.0 | n/m | n/m | >100.0 | >100.0 |
a | Adjusted net revenues exclude specified items. Refer to the Reconciliation of GAAP Reported to Non-GAAP Adjusted Information for further details. Percentage change is calculated using adjusted net revenues. |
b | Reflects profit sharing for Imbruvica international revenues. |
Third Quarter Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net revenues | $ | 8,479 | $ | 8,236 | $ | 24,562 | $ | 24,448 | |||||||
Cost of products sold | 1,920 | 1,835 | 5,433 | 5,696 | |||||||||||
Selling, general and administrative | 1,657 | 1,919 | 4,991 | 5,470 | |||||||||||
Research and development | 2,285 | 1,268 | 4,865 | 3,834 | |||||||||||
Acquired in-process research and development | — | 55 | 246 | 124 | |||||||||||
Other expense | — | — | — | 500 | |||||||||||
Total operating costs and expenses | 5,862 | 5,077 | 15,535 | 15,624 | |||||||||||
Operating earnings | 2,617 | 3,159 | 9,027 | 8,824 | |||||||||||
Interest expense, net | 420 | 302 | 1,054 | 825 | |||||||||||
Net foreign exchange loss | 19 | 2 | 31 | 18 | |||||||||||
Other expense, net | 177 | 94 | 2,590 | 411 | |||||||||||
Earnings before income tax expense | 2,001 | 2,761 | 5,352 | 7,570 | |||||||||||
Income tax expense | 117 | 14 | 271 | 57 | |||||||||||
Net earnings | $ | 1,884 | $ | 2,747 | $ | 5,081 | $ | 7,513 | |||||||
Diluted earnings per share | $ | 1.26 | $ | 1.81 | $ | 3.41 | $ | 4.79 | |||||||
Adjusted diluted earnings per sharea | $ | 2.33 | $ | 2.14 | $ | 6.73 | $ | 6.01 | |||||||
Weighted-average diluted shares outstanding | 1,483 | 1,515 | 1,483 | 1,561 |
a | Refer to the Reconciliation of GAAP Reported to Non-GAAP Adjusted Information for further details. |
3Q19 | |||||||||||
Earnings | Diluted | ||||||||||
Pre-tax | After-tax | EPS | |||||||||
As reported (GAAP) | $ | 2,001 | $ | 1,884 | $ | 1.26 | |||||
Adjusted for specified items: | |||||||||||
Intangible asset amortization | 389 | 323 | 0.22 | ||||||||
Milestones and other R&D expenses | 20 | 20 | 0.01 | ||||||||
Change in fair value of contingent consideration | 271 | 271 | 0.19 | ||||||||
Restructuring | 17 | 14 | — | ||||||||
Litigation reserves | 7 | 5 | — | ||||||||
Stemcentrx-related impairment | 939 | 823 | 0.56 | ||||||||
Acquisition related costs | 158 | 128 | 0.09 | ||||||||
As adjusted (non-GAAP) | $ | 3,802 | $ | 3,468 | $ | 2.33 |
3Q19 | |||||||||||||||||||
Cost of products sold | SG&A | R&D | Interest expense, net | Other expense, net | |||||||||||||||
As reported (GAAP) | $ | 1,920 | $ | 1,657 | $ | 2,285 | $ | 420 | $ | 177 | |||||||||
Adjusted for specified items: | |||||||||||||||||||
Intangible asset amortization | (389 | ) | — | — | — | — | |||||||||||||
Milestones and other R&D expenses | — | — | (20 | ) | — | — | |||||||||||||
Change in fair value of contingent consideration | — | — | — | — | (271 | ) | |||||||||||||
Restructuring | (6 | ) | (3 | ) | (8 | ) | — | — | |||||||||||
Litigation reserves | — | (7 | ) | — | — | — | |||||||||||||
Stemcentrx-related impairment | — | — | (1,030 | ) | — | 91 | |||||||||||||
Acquisition related costs | — | (26 | ) | — | (132 | ) | — | ||||||||||||
As adjusted (non-GAAP) | $ | 1,525 | $ | 1,621 | $ | 1,227 | $ | 288 | $ | (3 | ) |
3Q19 | ||||||||||
Pre-tax earnings | Income taxes | Tax rate | ||||||||
As reported (GAAP) | $ | 2,001 | $ | 117 | 5.9 | % | ||||
Specified items | 1,801 | 217 | 12.1 | % | ||||||
As adjusted (non-GAAP) | $ | 3,802 | $ | 334 | 8.8 | % |
3Q18 | |||||||||||
Earnings | Diluted | ||||||||||
Pre-tax | After-tax | EPS | |||||||||
As reported (GAAP) | $ | 2,761 | $ | 2,747 | $ | 1.81 | |||||
Adjusted for specified items: | |||||||||||
Intangible asset amortization | 320 | 263 | 0.17 | ||||||||
Acquired IPR&D | 55 | 55 | 0.04 | ||||||||
Charitable contributions | 115 | 89 | 0.06 | ||||||||
Change in fair value of contingent consideration | 95 | 95 | 0.06 | ||||||||
Litigation reserves | 228 | 176 | 0.12 | ||||||||
Impacts of U.S. tax reform | — | (177 | ) | (0.12 | ) | ||||||
Other | 7 | 7 | — | ||||||||
As adjusted (non-GAAP) | $ | 3,581 | $ | 3,255 | $ | 2.14 |
3Q18 | |||||||||||||||
Cost of products sold | SG&A | Acquired IPR&D | Other expense, net | ||||||||||||
As reported (GAAP) | $ | 1,835 | $ | 1,919 | $ | 55 | $ | 94 | |||||||
Adjusted for specified items: | |||||||||||||||
Intangible asset amortization | (320 | ) | — | — | — | ||||||||||
Acquired IPR&D | — | — | (55 | ) | — | ||||||||||
Charitable contributions | — | (115 | ) | — | — | ||||||||||
Change in fair value of contingent consideration | — | — | — | (95 | ) | ||||||||||
Litigation reserves | — | (228 | ) | — | — | ||||||||||
Other | (6 | ) | (1 | ) | — | — | |||||||||
As adjusted (non-GAAP) | $ | 1,509 | $ | 1,575 | $ | — | $ | (1 | ) |
3Q18 | ||||||||||
Pre-tax earnings | Income taxes | Tax rate | ||||||||
As reported (GAAP) | $ | 2,761 | $ | 14 | 0.5 | % | ||||
Specified items | 820 | 312 | 38.1 | % | ||||||
As adjusted (non-GAAP) | $ | 3,581 | $ | 326 | 9.1 | % |
9M19 | |||||||||||
Earnings | Diluted | ||||||||||
Pre-tax | After-tax | EPS | |||||||||
As reported (GAAP) | $ | 5,352 | $ | 5,081 | $ | 3.41 | |||||
Adjusted for specified items: | |||||||||||
Intangible asset amortization | 1,162 | 962 | 0.65 | ||||||||
Milestones and other R&D expenses | 95 | 95 | 0.06 | ||||||||
Acquired IPR&D | 246 | 241 | 0.16 | ||||||||
Change in fair value of contingent consideration | 2,744 | 2,746 | 1.85 | ||||||||
Restructuring | 188 | 153 | 0.10 | ||||||||
Litigation reserves | 27 | 21 | 0.01 | ||||||||
Stemcentrx-related impairment | 939 | 823 | 0.56 | ||||||||
Acquisition related costs | 189 | 155 | 0.10 | ||||||||
Tax audit settlement | — | (267 | ) | (0.18 | ) | ||||||
Other | 20 | 20 | 0.01 | ||||||||
As adjusted (non-GAAP) | $ | 10,962 | $ | 10,030 | $ | 6.73 |
9M19 | |||||||||||||||||||||||
Cost of products sold | SG&A | R&D | Acquired IPR&D | Interest expense, net | Other expense, net | ||||||||||||||||||
As reported (GAAP) | $ | 5,433 | $ | 4,991 | $ | 4,865 | $ | 246 | $ | 1,054 | $ | 2,590 | |||||||||||
Adjusted for specified items: | |||||||||||||||||||||||
Intangible asset amortization | (1,162 | ) | — | — | — | — | — | ||||||||||||||||
Milestones and other R&D expenses | — | — | (95 | ) | — | — | — | ||||||||||||||||
Acquired IPR&D | — | — | — | (246 | ) | — | — | ||||||||||||||||
Change in fair value of contingent consideration | — | — | — | — | — | (2,744 | ) | ||||||||||||||||
Restructuring | (15 | ) | (110 | ) | (63 | ) | — | — | — | ||||||||||||||
Litigation reserves | — | (27 | ) | — | — | — | — | ||||||||||||||||
Stemcentrx-related impairment | — | — | (1,030 | ) | — | — | 91 | ||||||||||||||||
Acquisition related costs | — | (50 | ) | — | — | (139 | ) | — | |||||||||||||||
Other | (1 | ) | — | (19 | ) | — | — | — | |||||||||||||||
As adjusted (non-GAAP) | $ | 4,255 | $ | 4,804 | $ | 3,658 | $ | — | $ | 915 | $ | (63 | ) |
9M19 | ||||||||||
Pre-tax earnings | Income taxes | Tax rate | ||||||||
As reported (GAAP) | $ | 5,352 | $ | 271 | 5.1 | % | ||||
Specified items | 5,610 | 661 | 11.8 | % | ||||||
As adjusted (non-GAAP) | $ | 10,962 | $ | 932 | 8.5 | % |
9M18 | |||||||||||
Earnings | Diluted | ||||||||||
Pre-tax | After-tax | EPS | |||||||||
As reported (GAAP) | $ | 7,570 | $ | 7,513 | $ | 4.79 | |||||
Adjusted for specified items: | |||||||||||
Intangible asset amortization | 974 | 801 | 0.51 | ||||||||
Milestones and other R&D expenses | 87 | 87 | 0.05 | ||||||||
Acquired IPR&D | 124 | 124 | 0.08 | ||||||||
Calico collaboration | 500 | 500 | 0.32 | ||||||||
Charitable contributions | 235 | 182 | 0.12 | ||||||||
Change in fair value of contingent consideration | 432 | 432 | 0.28 | ||||||||
Litigation reserves | 346 | 276 | 0.18 | ||||||||
Impacts of U.S. tax reform | — | (534 | ) | (0.34 | ) | ||||||
Other | 38 | 39 | 0.02 | ||||||||
As adjusted (non-GAAP) | $ | 10,306 | $ | 9,420 | $ | 6.01 |
9M18 | |||||||||||||||||||||||||||
Net revenues | Cost of products sold | SG&A | R&D | Acquired IPR&D | Other operating expense | Other expense, net | |||||||||||||||||||||
As reported (GAAP) | $ | 24,448 | $ | 5,696 | $ | 5,470 | $ | 3,834 | $ | 124 | $ | 500 | $ | 411 | |||||||||||||
Adjusted for specified items: | |||||||||||||||||||||||||||
Intangible asset amortization | — | (974 | ) | — | — | — | — | — | |||||||||||||||||||
Milestones and other R&D expenses | — | — | — | (87 | ) | — | — | — | |||||||||||||||||||
Acquired IPR&D | — | — | — | — | (124 | ) | — | — | |||||||||||||||||||
Calico collaboration | — | — | — | — | — | (500 | ) | — | |||||||||||||||||||
Charitable contributions | — | — | (235 | ) | — | — | — | — | |||||||||||||||||||
Change in fair value of contingent consideration | — | — | — | — | — | — | (432 | ) | |||||||||||||||||||
Litigation reserves | — | — | (346 | ) | — | — | — | — | |||||||||||||||||||
Other | (20 | ) | (34 | ) | (1 | ) | (23 | ) | — | — | — | ||||||||||||||||
As adjusted (non-GAAP) | $ | 24,428 | $ | 4,688 | $ | 4,888 | $ | 3,724 | $ | — | $ | — | $ | (21 | ) |
9M18 | ||||||||||
Pre-tax earnings | Income taxes | Tax rate | ||||||||
As reported (GAAP) | $ | 7,570 | $ | 57 | 0.8 | % | ||||
Specified items | 2,736 | 829 | 30.3 | % | ||||||
As adjusted (non-GAAP) | $ | 10,306 | $ | 886 | 8.6 | % |