AbbVie (ABBV) Q4 2023 earnings summary

Executive summary

• FY 2023 revenue was $54.318B, down 6.4% reported and 5.9% operational; Humira biosimilar competition weighed on immunology, while neuroscience grew 18.2%.

• 2024 guidance calls for modest operational revenue growth, followed by robust growth in 2025 and high-single-digit CAGR through 2029.

Financial highlights

• Q4 revenue was $14.301B, down 5.4%; diluted EPS was $0.46 GAAP and $2.79 adjusted, down 66.7% and 22.5%, respectively.

• FY diluted EPS was $2.72 GAAP, down 59.0%, and $11.11 adjusted, down 19.3%; net earnings were $4.863B versus $11.836B in 2022.

• Acquired IPR&D and milestone expenses reduced FY GAAP and adjusted diluted EPS by $0.42; expense was $778M pre-tax and $741M after-tax.

Outlook and guidance

• 2024 adjusted diluted EPS guidance is $11.05–$11.25, including $0.32 per-share dilution from the proposed ImmunoGen and Cerevel acquisitions, and excluding acquired IPR&D and milestone expense.

• Combined 2027 Skyrizi and Rinvoq sales guidance rose to >$27B, $6B above the previous estimate; robust growth is expected into the 2030s.

• Skyrizi 2027 sales target is >$17B: $11.5B from psoriatic diseases and $5.5B from IBD; 2024 guidance is ~$16B.

• Rinvoq 2027 sales target is >$10B: $4.5B in rheumatology, $3.2B in IBD and $2.3B in dermatology; next indications are expected to drive an inflection from 2027.

• Peak sales targets include Vraylar approaching $5B, Ubrelvy and Qulipta combined >$3B, ABBV-951 >$1B, and Aesthetics >$9B in 2029; oncology revenue is expected to return to growth in 2026.