AbbVie Reports First-Quarter 2013 Financial Results

             AbbVie Reports First-Quarter 2013 Financial Results

  PR Newswire

  NORTH CHICAGO, Illinois, April 26, 2013

- Reports First-Quarter Adjusted EPS of $0.68, GAAP EPS of $0.60

- Delivers Revenue of $4.329 Billion, Including 16.0 Percent Global Sales
Growth from HUMIRA (Up 17.3 Percent Excluding Foreign Exchange)

- Confirms 2013 Adjusted EPS Guidance of $3.03-$3.13, GAAP EPS Guidance of

- All Registrational Studies in AbbVie's Phase 3 HCV Program are Underway and
Enrolling Rapidly

- Pipeline Continues to Advance with a Number of Phase 3 Trial Starts Expected
Over Next 12-18 Months, Including Atrasentan, ABT-199, ABT-719, ABT-126 and
Elagolix (Uterine Fibroids )

NORTH CHICAGO, Illinois, April 26, 2013 /PRNewswire/ -- AbbVie (NYSE:
ABBV)today announced financial results for the first quarter ended March 31,

"In our first quarter as an independent company, AbbVie delivered earnings per
share above our original guidance," said Richard A. Gonzalez, chairman and
chief executive officer, AbbVie. "The business generated strong sales growth
despite loss of exclusivity in our lipid franchise, which speaks to the
foundation of AbbVie's product portfolio. Additionally, we advanced our
promising pipeline during the first quarter, with continued progress across
our mid- and late-stage development programs."

First-Quarter Results

  *Worldwide sales were $4.329 billion in the first quarter, up 3.7 percent.
    On an operational basis, sales increased 5.1 percent, excluding a 1.4
    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 8.6 percent in the first quarter. 
  *Sales growth was driven by the continued strength of HUMIRA, both in the
    United States and internationally. Global HUMIRA sales increased 16.0
    percent, or 17.3 percent on an operational basis, excluding the impact of
    foreign exchange rate fluctuations. U.S. HUMIRA sales grew 23.7 percent
    due to growth in dermatology and gastroenterology, as well as the global
    launch of the ulcerative colitis indication.
  *First-quarter adjusted gross margin ratio was 76.2 percent, as expected,
    excluding intangible asset amortization and other specified items. This
    reflects both the loss of exclusivity within our lipid franchise, as well
    as the effect of unfavorable foreign exchange rate fluctuations on the
    ratio. The gross margin ratio under U.S. generally accepted accounting
    principles (GAAP) was 73.4 percent.
  *Adjusted SG&A was 27.9 percent of sales in the first quarter, reflecting
    continued investment in our growth brands and the incremental costs of
    becoming an independent company. On a GAAP basis, SG&A was 28.6 percent
    of sales.
  *Adjusted R&D was 14.6 percent of sales in the first 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 14.6 percent of sales.
  *Net interest expense was $66 million in the first quarter, and adjusted
    other income was $18 million. On a GAAP basis, other income was $15
  *The adjusted tax rate was 22.2 percent in the quarter. On a GAAP basis,
    the first-quarter tax rate was 21.9 percent.
  *First-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 $0.68, above the
    company's previous guidance range. 

Key Events from the First Quarter

  *Earlier this week, AbbVie presented new data from its rapidly-advancing
    hepatitis C program at the annual meeting of the European Association for
    the Study of the Liver (EASL). New data from the Phase 2b AVIATOR study
    show SVR rates of greater than 90 percent in naive and prior null
    responder patients treated with AbbVie's 3-DAA+RBV regimen, across HCV
    subtype, IL28B genotype, baseline HCV-RNA or severity of fibrosis. We
    expect our ongoing Phase 3 studies to begin to read out later this year
    and into early 2014, supporting mid-2014 registration submissions.
  *Initiated Phase 2b studies of elagolix in uterine fibroids. Elagolix is
    currently in Phase 3 development for endometriosis. Both conditions are
    prevalent with few treatment options.
  *Initiated additional Phase 2b studies of ABT-719, our novel
    investigational compound for the prevention of acute kidney injury. We
    expect ABT-719 to advance into Phase 3 studies in early 2014.
  *ABT-199, our next-generation BcL-2 inhibitor in development in partnership
    with Roche/Genentech, was featured in a special symposium at the American
    Association for Cancer Research (AACR) annual meeting earlier this month.
    AbbVie recently proposed an amended study protocol for ABT-199 in chronic
    lymphocytic leukemia. Upon approval by theU.S.Food and Drug
    Administration (FDA), dose escalation and new patient recruitment will
  *AbbVie announced long-term, patient-reported health outcomes data for the
    use of HUMIRA in patients with pediatric Crohn's disease. Results from
    the Phase 3 IMAgINE-1 trial demonstrated improvements in health-related
    quality of life measures for patients aged 6 to 17 years with severe
    active Crohn's disease, taking HUMIRA, as well as the work productivity of
    their caregivers throughout the 52-week study.
  *Received FDA approval for new Creon 36,000 lipase-unit capsules for
    patients with exocrine pancreatic insufficiency. Creon 36,000 is the
    highest dose of pancreatic therapy (PERT) currently available for
  *On February 15, the board of directors of AbbVie declared a quarterly cash
    dividend of $0.40 per share, payable May 15, 2013 to stockholders of
    record at the close of business on April 15, 2013. AbbVie was named to
    the S&P 500 Dividend Aristocrats Index, which tracks companies that have
    annually increased their dividend for at least 25 consecutive years.
    AbbVie was included as a result of the Index's change in its treatment of
    spin-off companies.
  *AbbVie's board authorized a share repurchase program of up to $1.5 billion
    of the company's outstanding common stock. The share repurchase
    authorization is expected to be completed over a multi-year period and
    purchases may be made from time to time in management's discretion. The
    share repurchase authorization permits shares to be repurchased in open
    market or private transactions, has no time limit and may be discontinued
    at any time.

Full-Year 2013 Outlook

AbbVie is confirming its diluted earnings-per-share guidance for the full-year
2013 of $2.66 to $2.76 on a GAAP basis, or $3.03 to $3.13 on an adjusted
basis. The company's 2013 adjusted diluted earnings-per-share guidance
excludes $0.37 per share of intangible asset amortization expense and other
specified items, primarily associated with certain separation-related costs
and previously announced ongoing restructuring activities. The company will
further refine the forecast for specified items, including separation-related
costs, as the year progresses.

About AbbVie

AbbVie is a global, research-based biopharmaceutical company formed in 2013
following separation from Abbott. The company's mission is to use its
expertise, dedicated people and unique approach to innovation to develop and
market advanced therapies that address some of the world's most complex and
serious diseases. In 2013, AbbVie employs approximately 21,000 people
worldwide and markets medicines in more than 170 countries. For further
information on the company and its people, portfolio and commitments, please
visit . Follow @abbvie on Twitter or view careers on our
Facebook or LinkedIn page.

Conference Call

AbbVie will host an investor conference call today at 8:00 a.m. Central time
to discuss our first-quarter performance. Participating on the call will be
Rick Gonzalez, chairman and chief executive officer; Bill Chase, executive
vice president and chief financial officer; Laura Schumacher, executive vice
president of business development, external affairs and general counsel; John
Leonard, senior vice president and chief scientific officer; and Larry Peepo,
vice president of investor relations. The call will be webcast through
AbbVie's Investor Relations Web site at . An archived
edition of the call will be available after 11:00 a.m. Central time.

Non-GAAP Financial Results

Financial results for 2013 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. The company's 2013
financial guidance is also being provided on both a reported and a non-GAAP

Forward-Looking Statements

Some statements in this news release may be 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's operations is set forth in Item 1A, "Risk Factors," in our 2012
Annual Report on Form 10-K/A, which has been filed with the Securities and
Exchange Commission. AbbVie undertakes no obligation to release publicly any
revisions to forward-looking statements as a result of subsequent events or
developments, except as required by law.

       AbbVie Inc. Key Product Sales Quarter Ended March 31, 2013 (Unaudited)
                                                    % Change vs. 1Q12
                Sales (in millions)            International            Total
                 U.S.  Int'l. Total   U.S.  Operational Reported Operational Reported
TOTAL SALES     $2,122 $2,207 $4,329 (0.4%)       10.7%     8.0%        5.1%     3.7%
Humira             956  1,288  2,244   23.7        13.0     10.9        17.3     16.0
Synagis             --    345    345  n/m         6.4    (0.3)         5.1    (1.4)
AndroGel           240     --    240    3.4      n/a    n/a         3.4      3.4
Kaletra             52    167    219  (5.5)         2.4      0.6         0.5    (0.9)
Niaspan            186     --    186  (2.6)      n/a     n/a       (2.6)    (2.6)
Lupron             125     56    181 (11.3)       (1.7)    (3.4)       (8.5)    (9.0)
TriCor/Trilipix    128     --    128 (49.6)      n/a    n/a      (49.6)   (49.6)
Synthroid          119     --    119  (7.8)      n/a    n/a       (7.8)    (7.8)
Creon               90     --     90   32.4      n/a    n/a        32.4     32.4
Zemplar             41     40     81 (22.6)         8.1      8.1      (10.0)   (10.0)
Duodopa             --     39     39  n/a         8.3      8.3         8.3      8.3
Note: "Operational" growth reflects percentage change over the prior year excluding
the impact of exchange rate fluctuations.
n/m = not meaningful
n/a = not applicable

AbbVie Inc. Consolidated Statements of Earnings Quarters Ended March 31, 2013
          and 2012 (Unaudited) (In millions, except per share data)
                                           2013                     2012
Net sales                                      $4,329                  $4,173
Cost of products sold                           1,153                   1,156
Selling, general and administrative             1,237                   1,247
Research and development                          634                     642
Acquired in-process research and
development                                        --                     150
Total operating cost and expenses               3,024                   3,195
Operating earnings                              1,305                     978
Interest expense, net                              66                     (1)
Net foreign exchange (gain) loss                   15                      10
Other (income) expense, net                      (15)                    (37)
Earnings before income tax                      1,239                   1,006
Income tax expense                                271                     123
Net earnings                                     $968                    $883
Diluted earnings per share                      $0.60                   $0.56
Average diluted shares
outstanding                                1,605                   1,577
Note: On January 1, 2013, Abbott Laboratories distributed 1,577 million
shares of AbbVie common stock to Abbott's shareholders in connection with the
separation of AbbVie from Abbott. The computation of diluted earnings per
share for the quarter ended March 31, 2012 was calculated using the shares
distributed on January 1, 2013.

AbbVie Inc. Reconciliation of GAAP Reported to Non-GAAP Adjusted Information
Quarter Ended March 31, 2013 (Unaudited) (In millions, except per share data)
 1. Specified items impacted results as follows:
                                              Earnings              Diluted
                                        Pre-tax       After-tax       EPS
 As reported (GAAP)                          $1,239          $968       $0.60
 Adjusted for specified items:
 Intangible asset amortization                  135            98        0.06
 Separation costs                                34            22        0.01
 Restructuring/Other                      (1)             7        0.01
 As adjusted (non-GAAP)                      $1,407        $1,095       $0.68
 Intangible asset amortization reflects costs recognized as a result of
 licensing and acquisition activities. Separation costs are expenses related
 to the separation of AbbVie from Abbott. Restructuring/Other is primarily
 associated with previously announced restructuring activities and the impact
 of the Venezuelan currency devaluation.

 2. The impact of the specified items by line item was as follows:
                                                         Net foreign  Other
                                                          exchange   (income)
                                  Cost of
                               products sold  SG&A  R&D  (gain) loss expense
 As reported (GAAP)                  $1,153 $1,237 $634         $15    ($15)
 Adjusted for specified
 Intangible asset
 amortization                          (135)     --   --          --       --
 Separation costs                       (3)   (29)  (2)          --       --
 Restructuring/Other                     17    (2)   --        (11)      (3)
 As adjusted (non-GAAP)              $1,032 $1,206 $632          $4    ($18)

 3. The adjusted tax rate for the first quarter was 22.2 percent, as detailed
                                    Pre-tax        Income
                                    income          taxes        Tax rate
 As reported (GAAP)                      $1,239          $271           21.9%
 Specified items                            168            41           24.4%
 As adjusted (non-GAAP)                  $1,407          $312           22.2%

Contact: Media, Jennifer Smoter, +1-847-935-8865, or Greg Miley,
+1-847-938-4898, or Adelle Infante, +1-847-938-8745, or Investors, Larry
Peepo, +1-847-935-6722, or Liz Shea, +1-847-935-2211
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