AbbVie Inc. Q4 FY2024 earnings call

Management Statement and Operational Highlights

• Rob Michael: 2024 was an excellent year with full-year adjusted EPS $10.12, exceeding initial guidance. Ex-Humira platform grew over 18% full-year, 22% in Q4. Skyrizi and Rinvoq expected to generate ~$31B combined sales in 2027, up $4B from prior guidance. Neuroscience sales expected $10B in 2025. Oncology long-term growth prospects highlighted.
• Jeff Stewart: Immunology Q4 revenues ~$7.3B, exceeding expectations. Skyrizi and Rinvoq strong performance across indications. Humira global sales >$1.6B, down 48.7% operationally. Oncology Q4 revenues ~$1.7B.
• Carrie Strom: Aesthetics Q4 performance impacted by economic headwinds. US facial injectable market affected, but long-term growth potential remains. Reinstated Alle loyalty program in US with positive response.
• Roopal Thakkar: R&D progress with late-stage programs, regulatory applications, clinical trial starts. Immunology: Rinvoq GCA regulatory review, Skyrizi IBD study. Oncology: Teliso-V regulatory review, Temab-A Phase 3 study. Neuroscience: Tavapadon Phase 3 results positive.
• Scott Reents: Q4 adjusted EPS $2.16, above guidance midpoint. 2025 adjusted EPS guidance $12.12-$12.32. Total net revenues ~$59B, 5.7% operational growth despite Part D impact. First-quarter revenue ~$12.8B outlook.

Segment Performance

• Immunology: Fourth quarter revenues approximately $7.3 billion. Full-year global immunology sales expected to be $29.4 billion, including Skyrizi revenue of $15.9 billion (growth over $4.1 billion) and Rinvoq sales of $7.9 billion (growth nearly $2 billion). Skyrizi Q4 sales nearly $3.8 billion, full-year ~$17.7 billion; Rinvoq Q4 sales over $1.8 billion, full-year ~$7.9 billion.
• Humira: Q4 global sales over $1.6 billion, down 48.7% operationally due to biosimilar competition.
• Oncology: Q4 total revenues approximately $1.7 billion. Imbruvica global revenues $848 million (down 6.2%), Venclexta global sales $655 million (up 13% operationally), Elahere global sales $148 million.
• Neuroscience: Full-year global sales expected to be $10 billion. Q4 revenues $2.5 billion, up 19.9% operationally. Vraylar global sales $924 million, Botox Therapeutic global revenues $873 million, Ubrelvy global sales $303 million, Qulipta global revenues $201 million.
• Aesthetics: Q4 global sales $1.3 billion. US aesthetics sales $839 million (down 5%), international sales $459 million (down 3.2%). 2025 outlook: modest growth with high single-digit CAGR 2025-2029.
• Eye Care: 2025 global sales expected to be $2.2 billion.

Guidance

• 2025 adjusted EPS guidance: $12.12-$12.32.
• Total net revenues expected ~$59B, 5.7% operational growth despite ~4% net unfavorable impact from Medicare Part D benefit redesign and foreign exchange.
• Skyrizi and Rinvoq expected to exceed ~$31B combined sales in 2027, up $4B from prior guidance.
• Aesthetics: Modest growth with high single-digit CAGR 2025-2029.
• First-quarter 2025 net revenues expected ~$12.8B, with foreign exchange expected to have 1.6% unfavorable impact.

Risks

• Aesthetics: Economic headwinds, challenging market conditions in US and China, loyalty program impact initially.
• Regulatory and Market: Uncertainties in PBM reform, Part D benefit redesign impact, biosimilar competition for Humira, uncertainties in clinical trial outcomes and regulatory approvals for pipeline assets.

Question and Answer

• Q: Vamil Divan on Skyrizi pricing and aesthetics share A: Jeff Stewart noted Skyrizi and Rinvoq have volume-based business with low single-digit price declines. Carrie Strom said in US, Botox around low to mid-60s share, Juvéderm low to mid-40s share post-loyalty program reversion.
• Q: Chris Schott on Skyrizi/Rinvoq 2027 guidance and long-term growth A: Jeff Stewart and Scott Reents explained $4B upside in 2027 guidance driven by share capture across indications. Rob Michael discussed long-term growth with expected new indications for Rinvoq and continued share gains.
• Q: Geoff Meacham on Part D volume impact and NLRX1 agonist A: Scott Reents said Part D impact is ~4% headwind to growth, not quantified in guidance. Roopal Thakkar discussed NLRX1 agonist Phase 2 study in UC with objective data from endoscopic review.
• Q: David Risinger on Temab-A commercial vision and M&A agenda A: Jeff Stewart highlighted Temab-A as underappreciated asset with strong results in colorectal and lung cancer. Rob Michael discussed M&A strategy focusing on adding depth to pipeline in immunology, oncology, neuroscience, aesthetics, and eye care.
• Q: Steve Scala on Part D and aesthetics guidance A: Scott Reents explained Part D impact evolution due to business mix. Scott Reents and Carrie Strom discussed aesthetics long-term guidance with high single-digit CAGR 2025-2029, above $7B.
• Q: Tim Anderson on obesity impact on aesthetics and PBM reform A: Carrie Strom said obesity market is both headwind and tailwind for aesthetics. Rob Michael stated AbbVie has no preference between rebates or discounts in PBM reform.
• Q: Chris Raymond on atopic derm and lutikizumab A: Jeff Stewart and Roopal Thakkar discussed atopic derm growth with Rinvoq in-place share ramping, and lutikizumab as next asset in pipeline for skin clearance and itch control.
• Q: Trung Huynh on stocking/gross-to-net for Skyrizi/Rinvoq and aesthetics geography A: Scott Reents said no notable stocking/gross-to-net dynamics for Skyrizi/Rinvoq. Carrie Strom discussed aesthetics geographic outlook with focus on US, China, and international markets, expecting recovery and growth.
• Q: Chris Shibutani on combination approaches in immunology and eye care role A: Roopal Thakkar discussed combination approaches in immunology with co-formulations and biomarker strategies. Rob Michael highlighted eye care as a data-driven business with potential long-term growth driver despite low revenue contribution.