PR Newswire/Les Echos/ AbbVie Reports Second-Quarter 2013 Financial Results - Raises 2013 Adjusted EPS Guidance to
$3.07-$3.13,GAAP EPS Guidance of $2.66-$2.72- Reports Second-Quarter Adjusted EPS of $0.82, GAAP EPS of $0.66- Delivers Revenue of $4.692 Billion, an Increase of 4.4 Percent (Up 5.1 Percent Excluding Foreign Exchange) - Revenue Growth Reflects 12.1 Percent Global Reported Sales Growth from HUMIRA (Up 12.8 Percent Excluding Foreign Exchange) and Double-Digit Growth from Several Other Key Products - Significant Advancements in Pipeline: Phase 3 HCV Enrollment Now Complete; HCV Combination Granted Breakthrough Designation; Extended Galapagos Collaboration to Include Crohn's Disease; Initiated Phase 3 Program for Atrasentan; Entered Collaboration to Develop Novel Compound for Celiac Disease NORTH CHICAGO, Ill., July 26, 2013-- AbbVie(NYSE: ABBV) today announced financial results for the second quarter ended June 30, 2013. " AbbViehas delivered strong performance in both the second quarter and the first six months as an independent company," said Richard A. Gonzalez, chairman and chief executive officer, AbbVie. "Our first-half performance, including better-than-expected sales growth, has allowed us to increase our earnings-per-share guidance for the year. We also reached a number of key pipeline milestones this quarter, and remain very encouraged by the progress of our mid- and late-stage development programs." Second-Quarter Results * Worldwide sales were $4.692 billionin the second quarter, up 4.4 percent. On an operational basis, sales increased 5.1 percent, excluding a 0.7 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 10.3 percent in the second quarter. * Sales growth was driven primarily by the continued strength of HUMIRA. Global HUMIRA sales increased 12.1 percent, or 12.8 percent on an operational basis, excluding the impact of foreign exchange rate fluctuations. U.S. HUMIRA sales grew 16.0 percent due to growth in dermatology and gastroenterology, as well as the launch of the ulcerative colitis indication. Total company sales growth was also driven by double-digit growth from key products including Synthroid, Creon, Zemplar and Duodopa. * Second-quarter adjusted gross margin ratio was 80.7 percent, excluding intangible asset amortization and other specified items. The gross margin ratio under U.S. generally accepted accounting principles (GAAP) was 77.5 percent. * Adjusted selling, general and administrative (SG&A) expense was 27.9 percent of sales in the second quarter, reflecting continued investment in our growth brands. On a GAAP basis, SG&A was 30.0 percent of sales. * Adjusted research and development (R&D) was 14.8 percent of sales in the second 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 15.1 percent of sales. * Net interest expense was $75 millionin the second quarter, and adjusted other income was $7 million. On a GAAP basis, other income was $4 million. * The adjusted tax rate was 22.3 percent in the quarter. On a GAAP basis, the second-quarter tax rate was 21.9 percent. * Second-quarter diluted earnings per share were $0.66on 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.