AbbVie, a global leader in biopharmaceuticals, closed 2024 with a strong financial performance and a promising outlook for the future. The company reported impressive results across several key areas, highlighting not only strong product sales but also an impressive pipeline that continues to drive growth. Robert A. Michael, AbbVie’s CEO, emphasized that the company had made substantial progress in 2024, delivering robust results despite challenges like the loss of exclusivity for Humira in the U.S. The momentum from the year sets a solid foundation for AbbVie as it enters 2025 with optimism and plans for continued growth.
Fourth-Quarter Performance: A Solid Finish to the Year
AbbVie’s fourth-quarter results showed impressive growth, with worldwide net revenues reaching $15.102 billion. This represents a 5.6% increase on a reported basis and a 6.1% increase on an operational basis. The company’s portfolio in immunology, oncology, neuroscience, and aesthetics all contributed significantly to the positive performance, marking 2024 as a year of strong operational success.
Immunology Portfolio AbbVie’s immunology portfolio remains a cornerstone of its business. The company generated $7.294 billion from immunology sales, reflecting a 4.9% increase in reported revenues, or 5.3% growth on an operational basis. However, Humira, which has been a key driver of AbbVie’s revenue for years, experienced a sharp decline in the quarter. Global net revenues from Humira fell by 49.1%, down to $1.682 billion. The U.S. market saw a particularly steep decline, with revenues dropping by 54.5%. Internationally, the decline was less severe, but still significant, at 22.7%.
Despite the reduction in Humira revenues, AbbVie’s newer immunology drugs, Skyrizi and Rinvoq, showed strong growth, underscoring the company’s ability to pivot and drive results even as it transitions away from Humira. Skyrizi, for example, saw net revenues of $3.778 billion, a staggering 57.7% increase, while Rinvoq posted $1.834 billion in sales, marking a 46.2% rise. Together, these drugs are poised to become central players in AbbVie’s immunology portfolio going forward.
Oncology Portfolio AbbVie’s oncology division also showed positive momentum, with global revenues reaching $1.691 billion, an increase of 12.0% on a reported basis. Imbruvica, one of the company’s leading cancer drugs, saw a slight dip in sales, with revenues falling by 6.2% to $848 million. However, Venclexta, another key oncology asset, performed well, with global revenues of $655 million—a solid 11.0% increase.
Neuroscience Portfolio The neuroscience segment delivered strong results in Q4, with revenues totaling $2.509 billion. The standout performers were Botox Therapeutic and Vraylar, which saw increases of 12.5% and 17.1%, respectively. Botox Therapeutic continues to be a major contributor to AbbVie’s revenue, with $873 million in sales for the quarter. Additionally, migraine treatments like Ubrelvy and Qulipta were also key drivers of growth, with Qulipta seeing an impressive 76.4% increase in revenues.
Aesthetics Portfolio In contrast to the growth seen in other therapeutic areas, AbbVie’s aesthetics portfolio, which includes products like Botox Cosmetic and Juvederm, faced some challenges. The aesthetics segment as a whole posted revenues of $1.298 billion, a 5.2% decline. Botox Cosmetic revenue decreased by 4.2%, while Juvederm’s performance was more subdued, with a 16.3% drop in sales.
Financial Metrics and Expenses: A Snapshot of Operational Efficiency
AbbVie’s financial metrics also reflect strong operational efficiency, though the company faced some pressures. The gross margin ratio for the fourth quarter was 70.9% on a GAAP basis, while the adjusted gross margin ratio was slightly higher at 83.8%. Selling, general, and administrative (SG&A) expenses were 25.5% of net revenues, with an adjusted figure of 23.6%. The research and development (R&D) expenses represented 44.9% of net revenues on a GAAP basis, showing AbbVie’s commitment to advancing its pipeline and investing in the future.
One notable factor impacting the results was the tax rate, which was exceptionally high in the fourth quarter at 99.0% on a GAAP basis. However, this was due to specific charges related to intangible assets, and the adjusted tax rate was more in line with expectations at 20.2%.
AbbVie reported a diluted loss per share of $0.02 on a GAAP basis, which includes the impact of a partial intangible asset impairment charge. However, adjusted diluted earnings per share (EPS) stood at a solid $2.16, reflecting a strong operational performance despite the challenges faced.
Looking Ahead: A Bold Outlook for 2025 and Beyond
AbbVie’s strong performance in 2024 has set the stage for an ambitious outlook for 2025. The company has issued adjusted diluted EPS guidance for the year of $12.12 to $12.32, which reflects a continued focus on growth and profitability. This outlook excludes the potential impact of acquired IPR&D and milestone expenses, which cannot be reliably forecasted at this stage.
Looking beyond 2025, AbbVie is confident in its long-term prospects. The company has reaffirmed its guidance for a high single-digit compound annual revenue growth rate through 2029, with 2024 as the base year. AbbVie has also raised its long-term revenue projections for Skyrizi and Rinvoq, with the expectation that combined revenues from these two drugs will surpass $31 billion by 2027, a significant increase from previous forecasts. Skyrizi is expected to generate more than $20 billion in revenue, while Rinvoq is projected to contribute more than $11 billion.
AbbVie’s Continued Evolution: Innovation and Strategic Growth
AbbVie’s mission to discover and deliver innovative medicines remains at the core of its strategy. As the company moves into 2025, its growth will be fueled by a combination of strong product performance, an expanding pipeline, and strategic acquisitions. The company’s commitment to tackling serious health issues in areas like immunology, oncology, neuroscience, and aesthetics is unwavering.
With a robust financial foundation and a clear path forward, AbbVie is poised to continue its upward trajectory in 2025 and beyond, maintaining its leadership in the biopharmaceutical industry and delivering meaningful impact on patients’ lives worldwide.
Final Thoughts: A Year of Progress and a Bright Future Ahead for AbbVie
AbbVie’s 2024 financial results showcase the company’s ability to adapt to a changing landscape and drive growth through a diversified portfolio and strategic investments. With strong momentum heading into 2025, AbbVie is well-positioned to exceed its previous revenue peaks and make significant strides in advancing its pipeline. As the company enters the next phase of its growth, it remains focused on delivering innovative treatments that address some of the most pressing medical challenges of our time.
