Financial Release
"The fourth quarter was a continuation of the strong performance and business momentum
Fourth-Quarter Results
- Worldwide GAAP net revenues were
$6.796 billion in the fourth quarter, up 6.2 percent. Worldwide adjusted net revenues of$6.784 billion increased 6.9 percent, excluding a 0.2 percent unfavorable impact from foreign exchange rate fluctuations. - Global HUMIRA sales increased 15.5 percent on a reported basis, or 16.2 percent operationally, excluding a 0.7 percent unfavorable impact from foreign exchange. In the U.S., HUMIRA sales grew 23.5 percent in the quarter. Internationally, HUMIRA sales grew 4.1 percent, excluding a 2.0 percent unfavorable impact from foreign exchange. Strong sales growth was driven by continued momentum across all three major market categories – rheumatology, dermatology and gastroenterology.
- Fourth-quarter global IMBRUVICA net revenue was
$511 million , with U.S. sales of$434 million and international profit sharing of$77 million for the quarter. - On a GAAP basis, the gross margin ratio in the fourth quarter was 77.1 percent. The adjusted gross margin ratio was 81.0 percent.
- On a GAAP basis, selling, general and administrative expense was 24.3 percent of net revenues. The adjusted SG&A expense was 23.9 percent of net revenues.
- On a GAAP basis, research and development expense was 17.5 percent of net revenues. The adjusted R&D expense was 17.3 percent, reflecting funding actions supporting all stages of our pipeline.
- On a GAAP basis, the operating margin in the fourth quarter was 34.7 percent. The adjusted operating margin was 39.8 percent.
- On a GAAP basis, net interest expense was
$290 million . Adjusted net interest expense was$251 million . On a GAAP basis, the tax rate in the quarter was 30.4 percent. The adjusted tax rate was 20.2 percent. - Diluted EPS in the fourth quarter was
$0.85 on a GAAP basis. Adjusted diluted EPS, excluding intangible asset amortization expense and other specified items, was$1.20 , up 6.2 percent.
Key Events from the Fourth Quarter
AbbVie announced that theU.S. Food and Drug Administration (FDA ) approved IMBRUVICA to treat patients with marginal zone lymphoma (MZL), an indolent form of non-Hodgkin's lymphoma (NHL ). There are currently no other approved treatments specifically indicated for patients with MZL. This approval marks the fifth unique type of blood cancer indication for IMBRUVICA.AbbVie presented long-term follow-up data evaluating up to five years of IMBRUVICA use in patients with chronic lymphocytic leukemia/small lymphocytic lymphoma (CLL/SLL) at theAmerican Society of Hematology Annual Meeting and Exposition. In this analysis, 89 percent of treatment-naïve and relapsed/refractory patients with CLL/SLL, including those with high-risk disease, show a complete or partial response. Additionally, at the meeting,AbbVie presented encouraging efficacy and safety findings from a number of ongoing trials inNHL .AbbVie announced positive results from a registration-enabling Phase 2 study evaluating IMBRUVICA in patients with chronic graft-versus-host-disease (cGVHD), a serious and debilitating complication of stem cell or bone marrow transplant, who failed prior systemic therapy. The study found IMBRUVICA demonstrated efficacy, sustained responses and reduced symptom severity, with an overall response rate of 67 percent. In 2016, the U.S.FDA granted Breakthrough Therapy Designation and Orphan Drug Designation for IMBRUVICA as a potential treatment for cGVHD after failure of one or more lines of systemic therapy, and the company expects to submit its regulatory application in the first quarter of 2017.AbbVie announced theEuropean Commission has granted conditional marketing authorization for VENCLYXTO™ (venetoclax) monotherapy for the treatment of CLL in the presence of 17p deletion or TP53 mutation in adult patients who are unsuitable for or have failed a B-cell receptor pathway inhibitor; and for the treatment of CLL in the absence of 17p deletion or TP53 mutation in adult patients who have failed both chemoimmunotherapy and a B-cell receptor pathway inhibitor. In 2016, the U.S.FDA granted accelerated approval of Venclexta for the treatment of patients with CLL with 17p deletion who have received at least one prior therapy. Venclexta is being developed byAbbVie and Genentech, a member of theRoche Group .AbbVie submitted a New Drug Application to the U.S.FDA for its investigational, pan-genotypic, once-daily, ribavirin-free regimen of glecaprevir (ABT-493)/pibrentasvir (ABT-530) (G/P), being evaluated for the treatment of chronic hepatitis C virus (HCV). In Phase 3 clinical studies, eight weeks of therapy with G/P achieved high sustained virologic response (SVR) rates across all major genotypes (GT 1-6) in patients without cirrhosis, which represents the majority of HCV patients. In patients with compensated cirrhosis, high SVR rates were achieved after 12 weeks of therapy. High SVR rates were also achieved in patients with limited treatment options, such as those with severe chronic kidney disease. In historically difficult to treat populations, including those not cured by prior direct-acting antiviral (DAA) treatment regimens, high SVR rates were achieved with durations as short as 12 weeks.AbbVie received U.S. FDA Breakthrough Therapy Designation for its investigational regimen for the treatment of patients who failed previous therapy with DAAs in genotype 1.AbbVie also submitted its regulatory application in the EU and remains on track for submission inJapan in the first quarter of 2017. The company anticipates commercialization of the next-generation combination in 2017.AbbVie announced several new global research collaborations with leading healthcare innovators to advance early-stage research in key therapeutic areas such as oncology and immunology. These included a research and license agreement with Pure MHC, a privately-held target discovery company, to discover and validate peptide targets for use with T-cell receptor therapeutics in several types of cancers; an exclusive license withDong-A-ST , a leading specialty healthcare company in South Korea, for MerTK inhibitors in pre-clinical development for use in conjunction with immuno-oncology therapies; and a partnership withZebra Biologics, Inc. , a discovery stage biotechnology company, to discover agonist antibody therapeutics for inflammatory diseases.
Full-Year 2017 Outlook
About
Conference Call
Non-GAAP Financial Results
Financial results for 2016 and 2015 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.
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, among others, 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 indicated 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 Inc. |
||||||||||||||
Key Product Revenues |
||||||||||||||
Quarter Ended December 31, 2016 |
||||||||||||||
(Unaudited) |
||||||||||||||
% Change vs. 4Q15 |
||||||||||||||
Net Revenues (in millions) |
International |
Total |
||||||||||||
U.S. |
Int'l. |
Total |
U.S. |
Operational |
Reported |
Operational |
Reported |
|||||||
ADJUSTED NET REVENUESa |
$4,286 |
$2,498 |
$6,784 |
12.5% |
(1.3)% |
(2.0)% |
6.9% |
6.7% |
||||||
Humira |
2,878 |
1,414 |
4,292 |
23.5 |
4.1 |
2.1 |
16.2 |
15.5 |
||||||
Imbruvicab |
434 |
77 |
511 |
46.9 |
61.3 |
61.3 |
48.9 |
48.9 |
||||||
Viekira |
54 |
257 |
311 |
(72.3) |
(27.5) |
(27.9) |
(43.5) |
(43.7) |
||||||
Lupron |
178 |
41 |
219 |
(5.4) |
(13.2) |
(11.5) |
(6.9) |
(6.6) |
||||||
Synagis |
— |
270 |
270 |
n/a |
(4.3) |
1.3 |
(4.3) |
1.3 |
||||||
Synthroid |
205 |
— |
205 |
5.9 |
n/a |
n/a |
5.9 |
5.9 |
||||||
Creon |
213 |
— |
213 |
14.9 |
n/a |
n/a |
14.9 |
14.9 |
||||||
AndroGel |
174 |
— |
174 |
(10.4) |
n/a |
n/a |
(10.4) |
(10.4) |
||||||
Kaletra |
26 |
107 |
133 |
(34.8) |
(24.3) |
(26.6) |
(26.5) |
(28.3) |
||||||
Sevoflurane |
22 |
79 |
101 |
0.9 |
(5.7) |
(8.2) |
(4.3) |
(6.3) |
||||||
Duodopa |
11 |
67 |
78 |
>100.0 |
19.3 |
18.9 |
26.7 |
26.4 |
Note: "Operational" growth reflects the percentage change over the prior year excluding the impact of exchange rate fluctuations. |
|
n/a = not applicable |
|
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. |
AbbVie Inc. |
||||||||||||||
Key Product Revenues |
||||||||||||||
Twelve Months Ended December 31, 2016 |
||||||||||||||
(Unaudited) |
||||||||||||||
% Change vs. 12M15 |
||||||||||||||
Net Revenues (in millions) |
International |
Total |
||||||||||||
U.S. |
Int'l. |
Total |
U.S. |
Operational |
Reported |
Operational |
Reported |
|||||||
ADJUSTED NET REVENUESa |
$15,927 |
$9,633 |
$25,560 |
17.8% |
6.7% |
3.6% |
13.3% |
12.0% |
||||||
Humira |
10,432 |
5,646 |
16,078 |
24.1 |
4.3 |
0.7 |
16.1 |
14.7 |
||||||
Imbruvicab |
1,580 |
252 |
1,832 |
>100.0 |
>100.0 |
>100.0 |
>100.0 |
>100.0 |
||||||
Viekira |
342 |
1,180 |
1,522 |
(57.4) |
42.7 |
41.3 |
(6.4) |
(7.1) |
||||||
Lupron |
663 |
158 |
821 |
1.5 |
(5.2) |
(8.5) |
0.1 |
(0.6) |
||||||
Synagis |
— |
730 |
730 |
n/a |
(0.4) |
(1.5) |
(0.4) |
(1.5) |
||||||
Synthroid |
763 |
— |
763 |
1.1 |
n/a |
n/a |
1.1 |
1.1 |
||||||
Creon |
730 |
— |
730 |
15.5 |
n/a |
n/a |
15.5 |
15.5 |
||||||
AndroGel |
675 |
— |
675 |
(2.8) |
n/a |
n/a |
(2.8) |
(2.8) |
||||||
Kaletra |
116 |
433 |
549 |
(28.8) |
(13.3) |
(19.3) |
(16.9) |
(21.5) |
||||||
Sevoflurane |
80 |
348 |
428 |
(1.0) |
(6.9) |
(11.4) |
(6.0) |
(9.7) |
||||||
Duodopa |
37 |
256 |
293 |
>100.0 |
18.1 |
16.9 |
28.1 |
26.9 |
Note: "Operational" growth reflects the percentage change over the prior year excluding the impact of exchange rate fluctuations. |
|
n/a = not applicable |
|
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. |
AbbVie Inc. |
|||||||||||||||
Consolidated Statements of Earnings |
|||||||||||||||
Quarter and Twelve Months Ended December 31, 2016 and 2015 |
|||||||||||||||
(Unaudited) (In millions, except per share data) |
|||||||||||||||
Fourth Quarter |
Twelve Months |
||||||||||||||
2016 |
2015 |
2016 |
2015 |
||||||||||||
Net revenues |
$ |
6,796 |
$ |
6,400 |
$ |
25,638 |
$ |
22,859 |
|||||||
Cost of products sold |
1,555 |
1,475 |
5,833 |
4,500 |
|||||||||||
Selling, general and administrative |
1,653 |
1,737 |
5,855 |
6,387 |
|||||||||||
Research and development |
1,190 |
1,075 |
4,366 |
4,285 |
|||||||||||
Acquired in-process research and development |
40 |
— |
200 |
150 |
|||||||||||
Total operating cost and expenses |
4,438 |
4,287 |
16,254 |
15,322 |
|||||||||||
Operating earnings |
2,358 |
2,113 |
9,384 |
7,537 |
|||||||||||
Interest expense, net |
290 |
199 |
965 |
686 |
|||||||||||
Net foreign exchange loss (gain) |
(10) |
2 |
303 |
193 |
|||||||||||
Other expense (income), net |
80 |
(12) |
232 |
13 |
|||||||||||
Earnings before income tax expense |
1,998 |
1,924 |
7,884 |
6,645 |
|||||||||||
Income tax expense |
607 |
407 |
1,931 |
1,501 |
|||||||||||
Net earnings |
$ |
1,391 |
$ |
1,517 |
$ |
5,953 |
$ |
5,144 |
|||||||
Diluted earnings per share |
$ |
0.85 |
$ |
0.92 |
$ |
3.63 |
$ |
3.13 |
|||||||
Adjusted diluted earnings per sharea |
$ |
1.20 |
$ |
1.13 |
$ |
4.82 |
$ |
4.29 |
|||||||
Weighted-average diluted shares outstanding |
1,623 |
1,640 |
1,631 |
1,637 |
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 |
|||||||||||
Quarter Ended December 31, 2016 |
|||||||||||
(Unaudited) (In millions, except per share data) |
|||||||||||
1. Specified items impacted results as follows: |
|||||||||||
4Q16 |
|||||||||||
Earnings |
Diluted |
||||||||||
Pre-tax |
After-tax |
EPS |
|||||||||
As reported (GAAP) |
$ |
1,998 |
$ |
1,391 |
$ |
0.85 |
|||||
Adjusted for specified items: |
|||||||||||
Intangible asset amortization |
210 |
170 |
0.10 |
||||||||
Milestones and other R&D expenses |
10 |
10 |
0.01 |
||||||||
Acquired IPR&D |
40 |
40 |
0.02 |
||||||||
Acquisition related costs |
63 |
42 |
0.02 |
||||||||
Change in fair value of contingent consideration |
85 |
85 |
0.05 |
||||||||
Revaluation due to Section 987 tax law change |
— |
187 |
0.12 |
||||||||
Other |
55 |
39 |
0.03 |
||||||||
As adjusted (non-GAAP) |
$ |
2,461 |
$ |
1,964 |
$ |
1.20 |
Milestones and other R&D expenses are associated with milestone payments for previously announced collaborations. Acquired IPR&D primarily reflects an R&D collaboration. Acquisition related costs primarily include the amortization of the acquisition date fair value step-up for inventory related to the acquisition of Pharmacyclics. Other primarily includes a debt extinguishment charge as a result of the redemption of the company's 1.75% senior notes, milestone revenue under a previously announced collaboration and restructuring charges associated with streamlining global operations. |
2. The impact of the specified items by line item was as follows: |
4Q16 |
|||||||||||||||||||||||||||
Net revenues |
Cost of products |
SG&A |
R&D |
Acquired |
Interest |
Other |
|||||||||||||||||||||
As reported (GAAP) |
$ |
6,796 |
$ |
1,555 |
$ |
1,653 |
$ |
1,190 |
$ |
40 |
$ |
290 |
$ |
80 |
|||||||||||||
Adjusted for specified items: |
|||||||||||||||||||||||||||
Intangible asset amortization |
— |
(210) |
— |
— |
— |
— |
— |
||||||||||||||||||||
Milestones and other R&D expenses |
— |
— |
— |
(10) |
— |
— |
— |
||||||||||||||||||||
Acquired IPR&D |
— |
— |
— |
— |
(40) |
— |
— |
||||||||||||||||||||
Acquisition related costs |
— |
(53) |
(5) |
(5) |
— |
— |
— |
||||||||||||||||||||
Change in fair value of contingent consideration |
— |
— |
— |
— |
— |
— |
(85) |
||||||||||||||||||||
Other |
(12) |
(5) |
(23) |
— |
— |
(39) |
— |
||||||||||||||||||||
As adjusted (non-GAAP) |
$ |
6,784 |
$ |
1,287 |
$ |
1,625 |
$ |
1,175 |
$ |
— |
$ |
251 |
$ |
(5) |
3. The adjusted tax rate for the fourth quarter of 2016 was 20.2 percent, as detailed below: |
4Q16 |
||||||||||
Pre-tax |
Income |
Tax rate |
||||||||
As reported (GAAP) |
$ |
1,998 |
$ |
607 |
30.4 |
% |
||||
Specified items |
463 |
(110) |
(24.0) |
% |
||||||
As adjusted (non-GAAP) |
$ |
2,461 |
$ |
497 |
20.2 |
% |
AbbVie Inc. |
|||||||||||
Reconciliation of GAAP Reported to Non-GAAP Adjusted Information |
|||||||||||
Quarter Ended December 31, 2015 |
|||||||||||
(Unaudited) (In millions, except per share data) |
|||||||||||
1. Specified items impacted results as follows: |
|||||||||||
4Q15 |
|||||||||||
Earnings |
Diluted |
||||||||||
Pre-tax |
After-tax |
EPS |
|||||||||
As reported (GAAP) |
$ |
1,924 |
$ |
1,517 |
$ |
0.92 |
|||||
Adjusted for specified items: |
|||||||||||
Intangible asset amortization |
140 |
116 |
0.07 |
||||||||
Pharmacyclics acquisition related costs |
105 |
68 |
0.04 |
||||||||
Restructuring |
79 |
58 |
0.04 |
||||||||
Legal reserves |
125 |
101 |
0.06 |
||||||||
Separation costs and other |
3 |
1 |
— |
||||||||
As adjusted (non-GAAP) |
$ |
2,376 |
$ |
1,861 |
$ |
1.13 |
Pharmacyclics acquisition related costs reflect compensation expense, integration and other costs related to the acquisition of Pharmacyclics. Restructuring is primarily associated with streamlining our global operations. Separation costs and other is primarily related to the separation of AbbVie from Abbott and milestone revenue under a previously announced collaboration. |
2. The impact of the specified items by line item was as follows: |
4Q15 |
|||||||||||||||
Net |
Cost of products |
SG&A |
R&D |
||||||||||||
As reported (GAAP) |
$ |
6,400 |
$ |
1,475 |
$ |
1,737 |
$ |
1,075 |
|||||||
Adjusted for specified items: |
|||||||||||||||
Intangible asset amortization |
— |
(140) |
— |
— |
|||||||||||
Pharmacyclics acquisition related costs |
— |
(49) |
(15) |
(41) |
|||||||||||
Restructuring |
— |
(24) |
(39) |
(16) |
|||||||||||
Legal reserves |
— |
— |
(125) |
— |
|||||||||||
Separation costs and other |
(40) |
(16) |
(27) |
— |
|||||||||||
As adjusted (non-GAAP) |
$ |
6,360 |
$ |
1,246 |
$ |
1,531 |
$ |
1,018 |
3. The adjusted tax rate for the fourth quarter of 2015 was 21.6 percent, as detailed below: |
4Q15 |
||||||||||
Pre-tax |
Income |
Tax rate |
||||||||
As reported (GAAP) |
$ |
1,924 |
$ |
407 |
21.1 |
% |
||||
Specified items |
452 |
108 |
23.9 |
% |
||||||
As adjusted (non-GAAP) |
$ |
2,376 |
$ |
515 |
21.6 |
% |
AbbVie Inc. |
|||||||||||
Reconciliation of GAAP Reported to Non-GAAP Adjusted Information |
|||||||||||
Twelve Months Ended December 31, 2016 |
|||||||||||
(Unaudited) (In millions, except per share data) |
|||||||||||
1. Specified items impacted results as follows: |
|||||||||||
12M16 |
|||||||||||
Earnings |
Diluted |
||||||||||
Pre-tax |
After-tax |
EPS |
|||||||||
As reported (GAAP) |
$ |
7,884 |
$ |
5,953 |
$ |
3.63 |
|||||
Adjusted for specified items: |
|||||||||||
Intangible asset amortization |
764 |
615 |
0.38 |
||||||||
Milestones and other R&D expenses |
80 |
80 |
0.05 |
||||||||
Acquired IPR&D |
200 |
200 |
0.12 |
||||||||
Acquisition related costs |
392 |
273 |
0.16 |
||||||||
Change in fair value of contingent consideration |
228 |
228 |
0.14 |
||||||||
Venezuela devaluation loss |
298 |
298 |
0.18 |
||||||||
Revaluation due to Section 987 tax law change |
— |
187 |
0.12 |
||||||||
Other |
59 |
70 |
0.04 |
||||||||
As adjusted (non-GAAP) |
$ |
9,905 |
$ |
7,904 |
$ |
4.82 |
Milestones and other R&D expenses are associated with milestone payments for previously announced collaborations. Acquired IPR&D primarily reflects R&D collaborations as well as upfront payments related to licensing arrangements with third parties. Acquisition related costs primarily include the amortization of the acquisition date fair value step-up for inventory related to the acquisition of Pharmacyclics and compensation expense, financing and other costs associated with the acquisitions of Stemcentrx and Boehringer Ingelheim. Other includes a debt extinguishment charge as a result of the redemption of the company's 1.75% senior notes, a charge for the impairment of an intangible asset, restructuring charges associated with streamlining global operations, a charge to increase tax reserves, milestone revenue under previously announced collaborations and prior period royalty revenue related to a patent lawsuit settlement. |
2. The impact of the specified items by line item was as follows: |
12M16 |
|||||||||||||||||||||||||||||||
Net |
Cost of |
SG&A |
R&D |
Acquired |
Interest |
Net |
Other |
||||||||||||||||||||||||
As reported (GAAP) |
$ |
25,638 |
$ |
5,833 |
$ |
5,855 |
$ |
4,366 |
$ |
200 |
$ |
965 |
$ |
303 |
$ |
232 |
|||||||||||||||
Adjusted for specified items: |
|||||||||||||||||||||||||||||||
Intangible asset amortization |
— |
(764) |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||||
Milestones and other R&D expenses |
— |
— |
— |
(80) |
— |
— |
— |
— |
|||||||||||||||||||||||
Acquired IPR&D |
— |
— |
— |
— |
(200) |
— |
— |
— |
|||||||||||||||||||||||
Acquisition related costs |
— |
(197) |
(41) |
(140) |
— |
— |
— |
(14) |
|||||||||||||||||||||||
Change in fair value of contingent consideration |
— |
— |
— |
— |
— |
— |
— |
(228) |
|||||||||||||||||||||||
Venezuela devaluation loss |
— |
— |
— |
— |
— |
— |
(298) |
— |
|||||||||||||||||||||||
Other |
(78) |
(66) |
(38) |
6 |
— |
(39) |
— |
— |
|||||||||||||||||||||||
As adjusted (non-GAAP) |
$ |
25,560 |
$ |
4,806 |
$ |
5,776 |
$ |
4,152 |
$ |
— |
$ |
926 |
$ |
5 |
$ |
(10) |
3. The adjusted tax rate for the full-year 2016 was 20.2 percent, as detailed below: |
12M16 |
||||||||||
Pre-tax |
Income |
Tax rate |
||||||||
As reported (GAAP) |
$ |
7,884 |
$ |
1,931 |
24.5 |
% |
||||
Specified items |
2,021 |
70 |
3.4 |
% |
||||||
As adjusted (non-GAAP) |
$ |
9,905 |
$ |
2,001 |
20.2 |
% |
AbbVie Inc. |
|||||||||||
Reconciliation of GAAP Reported to Non-GAAP Adjusted Information |
|||||||||||
Twelve Months Ended December 31, 2015 |
|||||||||||
(Unaudited) (In millions, except per share data) |
|||||||||||
1. Specified items impacted results as follows: |
|||||||||||
12M15 |
|||||||||||
Earnings |
Diluted |
||||||||||
Pre-tax |
After-tax |
EPS |
|||||||||
As reported (GAAP) |
$ |
6,645 |
$ |
5,144 |
$ |
3.13 |
|||||
Adjusted for specified items: |
|||||||||||
Intangible asset amortization |
419 |
328 |
0.20 |
||||||||
Separation costs |
270 |
223 |
0.13 |
||||||||
Pharmacyclics acquisition related costs |
645 |
410 |
0.25 |
||||||||
Milestones and other R&D expenses |
480 |
433 |
0.26 |
||||||||
Acquired IPR&D |
150 |
150 |
0.09 |
||||||||
Shire termination |
170 |
170 |
0.10 |
||||||||
Restructuring |
113 |
82 |
0.06 |
||||||||
Legal reserves |
165 |
129 |
0.08 |
||||||||
Other |
(17) |
(9) |
(0.01) |
||||||||
As adjusted (non-GAAP) |
$ |
9,040 |
$ |
7,060 |
$ |
4.29 |
Separation costs are expenses related to the separation of AbbVie from Abbott. Pharmacyclics acquisition related costs reflect compensation expense, transaction, financing, integration and other costs related to the acquisition of Pharmacyclics. Milestones and other R&D expenses are associated with a milestone payment for a previously announced collaboration and the purchase of an FDA priority review voucher from a third party. Acquired IPR&D primarily reflects the C2N collaboration. Shire termination reflects the completed liquidation of remaining foreign currency positions related to the terminated Shire transaction. Restructuring is primarily associated with streamlining our global operations. Other primarily includes a milestone payment received under a previously announced collaboration. |
2. The impact of the specified items by line item was as follows: |
12M15 |
|||||||||||||||||||||||||||
Net |
Cost of |
SG&A |
R&D |
Acquired |
Interest |
Net |
|||||||||||||||||||||
As reported (GAAP) |
$ |
22,859 |
$ |
4,500 |
$ |
6,387 |
$ |
4,285 |
$ |
150 |
$ |
686 |
$ |
193 |
|||||||||||||
Adjusted for specified items: |
|||||||||||||||||||||||||||
Intangible asset amortization |
— |
(419) |
— |
— |
— |
— |
— |
||||||||||||||||||||
Separation costs |
— |
(5) |
(265) |
— |
— |
— |
— |
||||||||||||||||||||
Pharmacyclics acquisition related costs |
— |
(113) |
(294) |
(152) |
— |
(86) |
— |
||||||||||||||||||||
Milestones and other R&D expenses |
— |
— |
— |
(480) |
— |
— |
— |
||||||||||||||||||||
Acquired IPR&D |
— |
— |
— |
— |
(150) |
— |
— |
||||||||||||||||||||
Shire termination |
— |
— |
— |
— |
— |
— |
(170) |
||||||||||||||||||||
Restructuring |
— |
(42) |
(39) |
(32) |
— |
— |
— |
||||||||||||||||||||
Legal reserves |
— |
— |
(165) |
— |
— |
— |
— |
||||||||||||||||||||
Other |
(40) |
(16) |
(3) |
(4) |
— |
— |
— |
||||||||||||||||||||
As adjusted (non-GAAP) |
$ |
22,819 |
$ |
3,905 |
$ |
5,621 |
$ |
3,617 |
$ |
— |
$ |
600 |
$ |
23 |
3. The adjusted tax rate for the full-year 2015 was 21.9 percent, as detailed below: |
12M15 |
||||||||||
Pre-tax |
Income |
Tax rate |
||||||||
As reported (GAAP) |
$ |
6,645 |
$ |
1,501 |
22.6 |
% |
||||
Specified items |
2,395 |
479 |
20.0 |
% |
||||||
As adjusted (non-GAAP) |
$ |
9,040 |
$ |
1,980 |
21.9 |
% |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/abbvie-reports-full-year-and-fourth-quarter-2016-financial-results-300398035.html
SOURCE
Media: Adelle Infante, (847) 938-8745, Investors: Liz Shea, (847) 935-2211, Sharon Greenlees, (847) 935-0900, Todd Bosse, (847) 936-1182