10q10k10q10k.net

What changed in AbbVie's 10-K — 2023 vs 2024

vs

Paragraph-level year-over-year comparison of AbbVie's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+271 added−276 removedSource: 10-K (2025-02-14) vs 10-K (2024-02-20)

Top changes in AbbVie's 2024 10-K

271 paragraphs added · 276 removed · 219 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

48 edited+4 added−7 removed160 unchanged
Biggest changeRinvoq (upadacitinib) is an oral, once-daily selective and reversible JAK inhibitor that is approved to treat the following inflammatory diseases in North America, the European Union and Japan: Condition Principal Markets Rheumatoid arthritis (moderate to severe) North America, European Union, Japan Psoriatic arthritis U.S., Canada, European Union, Japan Ankylosing spondylitis U.S., European Union Atopic dermatitis (moderate to severe) U.S., Canada, European Union, Japan Axial spondyloarthropathy U.S., European Union Ulcerative colitis (moderate to severe) U.S., European Union Crohn's disease (moderate to severe) U.S., European Union In the United States, Rinvoq is indicated for both the treatment of moderate to severe active rheumatoid arthritis, for active psoriatic arthritis, for moderate to severe active ulcerative colitis, for active ankylosing spondylitis and for active non-radiographic axial spondyloarthritis in adult patients who have an inadequate response or intolerance to one or more TNF blockers.
Biggest changeRinvoq (upadacitinib) is an oral, once-daily selective and reversible JAK inhibitor that is approved to treat the following inflammatory diseases in North America, the European Union and Japan: Condition Principal Markets Rheumatoid arthritis (moderate to severe) North America, European Union, Japan Psoriatic arthritis North America, European Union, Japan Ankylosing spondylitis North America, European Union, Japan Atopic dermatitis (moderate to severe) North America, European Union, Japan Non-radiographic axial spondyloarthritis U.S., Canada, European Union, Japan Ulcerative colitis (moderate to severe) North America, European Union, Japan Crohn's disease (moderate to severe) U.S., Canada, European Union, Japan Active polyarticular juvenile idiopathic arthritis U.S.
Internet Information Copies of AbbVie's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 are available free of charge through AbbVie's investor relations website ( investors.abbvie.com ) as soon as reasonably practicable after AbbVie electronically files the material with, or furnishes it to, the Securities and Exchange Commission (SEC).
Internet Information Copies of AbbVie's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 are 13 | 2024 Form 10-K available free of charge through AbbVie's investor relations website ( investors.abbvie.com ) as soon as reasonably practicable after AbbVie electronically files the material with, or furnishes it to, the Securities and Exchange Commission (SEC).
Failure to comply can delay the release of a new product or result in regulatory and enforcement actions, the seizure or recall of a product, the suspension or revocation of the authority necessary for a product's production and sale and other civil or criminal sanctions, including fines and penalties. 9 | 2023 Form 10-K In addition to regulatory initiatives, AbbVie's business can be affected by ongoing studies of the utilization, safety, efficacy and outcomes of health care products and their components that are regularly conducted by industry participants, government agencies and others.
Failure to comply can delay the release of a new product or result in regulatory and enforcement actions, the seizure or recall of a product, the suspension or revocation of the authority necessary for a product's production and sale and other civil or criminal sanctions, including fines and penalties. 9 | 2024 Form 10-K In addition to regulatory initiatives, AbbVie's business can be affected by ongoing studies of the utilization, safety, efficacy and outcomes of health care products and their components that are regularly conducted by industry participants, government agencies and others.
In August 2023, the U.S. Department of Health and Human Services, through the Centers for Medicare & Medicaid Services (the CMS), selected Imbruvica as one of the first 10 medicines subject to government-set prices beginning in 2026.
In August 2023, the U.S. Department of Health and Human Services (HHS), through the Centers for Medicare & Medicaid Services (the CMS), selected Imbruvica as one of the first 10 medicines subject to government-set prices beginning in 2026.
AbbVie's corporate governance guidelines, outline of directorship qualifications, code of business conduct and the charters of AbbVie's audit committee, compensation committee, nominations and governance committee and public policy committee are all available on AbbVie's investor relations website ( investors.abbvie.com ).
AbbVie's corporate governance guidelines, outline of directorship qualifications, code of business conduct and the charters of AbbVie's audit committee, compensation committee, nominations and governance committee and public policy and sustainability committee are all available on AbbVie's investor relations website ( investors.abbvie.com ).
AbbVie's levodopa-carbidopa intestinal gel for the treatment of advanced Parkinson's disease is marketed as Duopa in the United States and as Duodopa outside of the United States. 3 | 2023 Form 10-K Ubrelvy. Ubrelvy (ubrogepant) is a calcitonin gene-related peptide receptor antagonist indicated for the acute treatment of migraine with or without aura in adults.
AbbVie's levodopa-carbidopa intestinal gel for the treatment of advanced Parkinson's disease is marketed as Duopa in the United States and as Duodopa outside of the United States. 3 | 2024 Form 10-K Ubrelvy. Ubrelvy (ubrogepant) is a calcitonin gene-related peptide receptor antagonist indicated for the acute treatment of migraine with or without aura in adults.
These patents and applications, including various patents that expire during the period 2024 to the mid 2040s, in aggregate are believed to be of material importance in the operation of AbbVie’s business. However, AbbVie believes that no single patent, license, trademark (or related group of patents, licenses, or trademarks), are material in relation to the company’s business as a whole.
These patents and applications, including various patents that expire during the period 2025 to the mid 2040s, in aggregate are believed to be of material importance in the operation of AbbVie’s business. However, AbbVie believes that no single patent, license, trademark (or related group of patents, licenses, or trademarks), are material in relation to the company’s business as a whole.
AbbVie believes that it has good relations with its employees. 2023 Form 10-K | 12 Human Capital Management Attracting, retaining and providing meaningful growth and development opportunities to AbbVie's employees is critical to the company's success in making a remarkable impact on people’s lives around the world.
AbbVie believes that it has good relations with its employees. 2024 Form 10-K | 12 Human Capital Management Attracting, retaining and providing meaningful growth and development opportunities to AbbVie's employees is critical to the company's success in making a remarkable impact on people’s lives around the world.
The majority of AbbVie’s medical device products, including AbbVie’s breast implants, are regulated as Class III medical devices. A Class III device may have significant additional obligations imposed in its conditions of approval, and the time in which it takes 11 | 2023 Form 10-K to obtain approval can be long.
The majority of AbbVie’s medical device products, including AbbVie’s breast implants, are regulated as Class III medical devices. A 11 | 2024 Form 10-K Class III device may have significant additional obligations imposed in its conditions of approval, and the time in which it takes to obtain approval can be long.
Ubrelvy is commercialized in the United States, Israel, Saudi Arabia, United Arab Emirates and Canada. Qulipta. Qulipta (atogepant) is a calcitonin gene-related peptide receptor antagonist indicated for the preventive treatment of episodic and chronic migraine in adults. Qulipta is commercialized in the United States and Canada and is approved in the European Union under the brand name Aquipta.
Ubrelvy is commercialized in the United States, Israel, Saudi Arabia, United Arab Emirates and Canada. Qulipta. Qulipta (atogepant) is a calcitonin gene-related peptide receptor antagonist indicated for the preventive treatment of episodic and chronic migraine in adults. Qulipta is commercialized in the United States and Canada and is approved in the European Union under the brand name Aquipta. Other neuroscience.
The Juvederm Collection of Fillers is a portfolio of hyaluronic acid-based dermal fillers with a variety of approved indications in the U.S. and in other major markets around the world to augment or treat volume loss in the cheeks, chin, lips and lower face. Other aesthetics.
The Juvederm Collection of Fillers is a portfolio of hyaluronic acid-based dermal fillers with a variety of approved indications in the U.S. and in other major markets around the world to augment or treat volume loss in the temples, undereye, cheeks, chin, lips and lower face. Other aesthetics.
Approval by the FDA is dependent upon many factors, including a showing that the biosimilar is "highly similar" to the original product and has no clinically meaningful differences from the original product in 5 | 2023 Form 10-K terms of safety, purity and potency.
Approval by the FDA is dependent upon many factors, including a showing that the biosimilar is "highly similar" to the original product and has no clinically meaningful differences from the original product in 5 | 2024 Form 10-K terms of safety, purity and potency.
The law also includes an extensive process for the innovator biologic and biosimilar manufacturer to litigate patent 2023 Form 10-K | 6 infringement, validity and enforceability. The European Union has also created a pathway for approval of biosimilars and has published guidelines for approval of certain biosimilar products.
The law also includes an extensive process for the innovator biologic and biosimilar manufacturer to litigate patent 2024 Form 10-K | 6 infringement, validity and enforceability. The European Union has also created a pathway for approval of biosimilars and has published guidelines for approval of certain biosimilar products.
Humira is facing direct biosimilar competition globally, and AbbVie will continue to face competitive pressure from these biologics and from orally administered products. In the United States, the FDA regulates biologics under the Federal Food, Drug, and Cosmetic Act (the FFDCA), the Public Health Service Act (PHSA) and the regulations implementing these statutes.
Humira faces direct biosimilar competition globally, and AbbVie will continue to face competitive pressure from these biologics and from orally administered products. In the United States, the FDA regulates biologics under the Federal Food, Drug, and Cosmetic Act (the FFDCA), the Public Health Service Act (PHSA) and the regulations implementing these statutes.
When administered for Crohn’s disease, Skyrizi is given in three induction doses via IV infusion, followed by subcutaneous injection via an on-body injector every eight weeks. Rinvoq .
When administered for Crohn’s disease and ulcerative colitis, Skyrizi is given in three induction doses via IV infusion, followed by subcutaneous injection via an on-body injector every eight weeks. Rinvoq .
It is possible that more of our products, including products that generate substantial revenues, 2023 Form 10-K | 10 could be selected in future years, which could, among other things, accelerate revenue erosion prior to expiration of intellectual property protections. The effect of reducing prices and reimbursement would significantly impact revenues for certain of our products. European Union.
It is possible that more of our products, including products that generate substantial revenues, could be selected in future years, which could, among other things, accelerate revenue erosion prior to expiration of intellectual property protections. The effect of reducing prices and reimbursement could significantly impact revenues for certain of our products. European Union.
Botox Cosmetic is an acetylcholine release inhibitor and a neuromuscular blocking agent indicated for treatment in three areas: temporary improvement in the appearance of moderate to severe glabellar lines (frown lines between the eyebrows), moderate to severe crow's feet and moderate to severe forehead lines in adults.
Botox Cosmetic is an acetylcholine release inhibitor and a neuromuscular blocking agent indicated for treatment in four areas: temporary improvement in the appearance of moderate to severe glabellar lines (frown lines between the eyebrows), moderate to severe crow's feet, moderate to severe forehead lines in adults and moderate to severe platysma bands.
In addition, AbbVie provides a discount of 70% for branded prescription drugs sold to patients who fall into the Medicare Part D coverage gap, or "donut hole." The Affordable Care Act also includes provisions known as the Physician Payments Sunshine Act, which require manufacturers of drugs and biologics covered under Medicare and Medicaid to record any transfers of value to physicians and teaching hospitals and to report this data to the Centers for Medicare and Medicaid Services for subsequent public disclosure.
In addition, through the end of 2024 AbbVie provided a discount of 70% for branded prescription drugs sold to patients who fell into the Medicare Part D coverage gap, or "donut hole." The Affordable Care Act also includes provisions known as the Physician Payments Sunshine Act, which require manufacturers of drugs and biologics covered under Medicare and Medicaid to record any transfers of value to physicians and teaching hospitals and to report this data to the Centers for Medicare and Medicaid Services for subsequent public disclosure.
In addition, as a condition of approval, the FDA may require post-marketing testing and surveillance to further 2023 Form 10-K | 8 assess and monitor the product's safety or efficacy after commercialization, which may require additional clinical trials, patient registries, observational data or additional work on chemistry, manufacturing and controls.
In addition, as a condition of approval, the FDA may require post-marketing testing and surveillance to further assess and monitor the product's safety or efficacy after commercialization, which may require additional clinical trials, patient registries, observational data or additional work on chemistry, manufacturing and controls.
Any post-approval regulatory obligations, and the cost of complying with such obligations, could expand in the future. Further, the FDA continues to regulate product labeling, and prohibits the promotion of products for unapproved or “off-label” uses along with other labeling restrictions. Outside the United States.
Any post-approval 2024 Form 10-K | 8 regulatory obligations, and the cost of complying with such obligations, could expand in the future. Further, the FDA continues to regulate product labeling, and prohibits the promotion of products for unapproved or “off-label” uses along with other labeling restrictions. Outside the United States.
In 2023, three wholesale distributors (McKesson Corporation, Cardinal Health, Inc. and AmerisourceBergen Corporation) accounted for substantially all of AbbVie's pharmaceutical product sales in the United States. No individual wholesaler accounted for greater than 39% of AbbVie's 2023 gross revenues in the United States.
In 2024, three wholesale distributors (McKesson Corporation, Cardinal Health, Inc. and Cencora, Inc.) accounted for substantially all of AbbVie's pharmaceutical product sales in the United States. No individual wholesaler accounted for greater than 39% of AbbVie's 2024 gross revenues in the United States.
Environmental Matters AbbVie believes that its operations comply in all material respects with applicable laws and regulations concerning environmental protection. Regulations under federal and state environmental laws impose stringent limitations on emissions and discharges to the environment from various manufacturing operations. AbbVie's capital expenditures for pollution control in 2023 were approximately $16 million and operating expenditures were approximately $43 million.
Environmental Matters AbbVie believes that its operations comply in all material respects with applicable laws and regulations concerning environmental protection. Regulations under federal and state environmental laws impose stringent limitations on emissions and discharges to the environment from various manufacturing operations. AbbVie's capital expenditures for pollution control in 2024 were approximately $13 million and operating expenditures were approximately $35 million.
It is approved to treat the following autoimmune diseases in the United States, Canada and Mexico (collectively, North America) and in the European Union: Condition Principal Markets Rheumatoid arthritis (moderate to severe) North America, European Union Psoriatic arthritis North America, European Union Ankylosing spondylitis North America, European Union Adult Crohn's disease (moderate to severe) North America, European Union Plaque psoriasis (moderate to severe chronic) North America, European Union Juvenile idiopathic arthritis (moderate to severe polyarticular) North America, European Union Ulcerative colitis (moderate to severe) North America, European Union Axial spondyloarthropathy European Union Pediatric Crohn's disease (moderate to severe) North America, European Union Hidradenitis suppurativa (moderate to severe) North America, European Union Pediatric enthesitis-related arthritis European Union Non-infectious intermediate, posterior and panuveitis North America, European Union Pediatric ulcerative colitis (moderate to severe) U.S., Canada, European Union Pediatric uveitis North America, European Union 1 | 2023 Form 10-K Humira is also approved in Japan for the treatment of intestinal Behçet's disease and pyoderma gangrenosum.
It is approved to treat the following autoimmune diseases in the United States, Canada and Mexico (collectively, North America) and in the European Union: Condition Principal Markets Rheumatoid arthritis (moderate to severe) North America, European Union Psoriatic arthritis North America, European Union Ankylosing spondylitis North America, European Union Crohn's disease (moderate to severe) North America, European Union Plaque psoriasis (moderate to severe chronic) North America, European Union Juvenile idiopathic arthritis (moderate to severe polyarticular) North America, European Union Ulcerative colitis (moderate to severe) North America, European Union Non-radiographic axial spondyloarthritis European Union Pediatric Crohn's disease (moderate to severe) North America, European Union Hidradenitis suppurativa (moderate to severe) North America, European Union Pediatric enthesitis-related arthritis European Union Non-infectious intermediate, posterior and panuveitis North America, European Union Pediatric ulcerative colitis (moderate to severe) North America, European Union Pediatric uveitis North America, European Union 1 | 2024 Form 10-K Humira is also approved in Japan for the treatment of intestinal Behçet's disease, generalized pustular psoriasis, and pyoderma gangrenosum.
Employees AbbVie employed approximately 50,000 employees in over 70 countries as of January 31, 2024. Outside the United States, some of AbbVie's employees are represented by unions or works councils.
Employees AbbVie employed approximately 55,000 employees in over 70 countries as of January 31, 2025. Outside the United States, some of AbbVie's employees are represented by unions or works councils.
It is also indicated for the treatment of Crohn's disease in adult patients who have an inadequate response or intolerance to one or more TNF blockers and for moderate to severe atopic dermatitis in adults and children 12 years of age and older, and for moderately to severely active ulcerative colitis in adults. 2023 Form 10-K | 2 Oncology products.
It is also indicated for the treatment of Crohn's disease in adult patients who have an inadequate response or intolerance to one or more TNF blockers and for moderate to severe atopic dermatitis in adults and children 12 years of age and older, and for moderately to severely active ulcerative colitis in adults.
Epkinly (epcoritimab) is a product used to treat adults with certain types of diffuse large B-cell lymphoma (DLBCL) and high-grade B-cell lymphoma that has recurred or that does not respond to previous treatment after receiving two or more treatments. Epkinly is administered as a subcutaneous injection. Elahere.
Epkinly (epcoritamab) is a product used to treat adults with certain types of diffuse large B-cell lymphoma (DLBCL) and high-grade B-cell lymphoma that has recurred or that does not respond to previous treatment after receiving two or more treatments. Epkinly is administered as a subcutaneous injection. Epkinly is also approved to treat adults with relapsed or refractory follicular lymphoma.
It is a biologic therapy approved to treat the following autoimmune diseases in North America, the European Union and Japan: Condition Principal Markets Plaque psoriasis (moderate to severe) North America, European Union, Japan Psoriatic arthritis U.S., European Union Crohn's disease (moderate to severe) U.S., Canada, European Union Skyrizi is also approved in Japan for the treatment of plaque psoriasis, psoriatic arthritis, erythrodermic psoriasis in patients who have an inadequate response to conventional therapies, and for induction and maintenance in moderately to severely active Crohn's disease.
It is a biologic therapy approved to treat the following autoimmune diseases in North America, the European Union and Japan: Condition Principal Markets Plaque psoriasis (moderate to severe) North America, European Union, Japan Psoriatic arthritis North America, European Union, Japan Crohn's disease (moderate to severe) North America, European Union, Japan Ulcerative colitis (moderate to severe) U.S., Canada, European Union, Japan Skyrizi is also approved in Japan for the treatment of erythrodermic psoriasis in patients who have an inadequate response to conventional therapies, for generalized pustular psoriasis, and for palmoplantar pustulosis in patients who have an inadequate response to conventional therapies.
AbbVie believes its culture creates strong engagement, which is measured regularly through a confidential, third-party all-employee survey, and this engagement supports AbbVie’s mission of making a remarkable impact on people’s lives. Equity, Equality, Diversity & Inclusion (EED&I). A cornerstone of AbbVie’s human capital management approach is to prioritize fostering an inclusive and diverse workforce.
AbbVie believes its culture creates strong engagement, which is measured regularly through a confidential, third-party all-employee survey, and this engagement supports AbbVie’s mission of making a remarkable impact on people’s lives. Diversity & Inclusion. A cornerstone of AbbVie’s human capital management approach is to prioritize fostering an inclusive workforce where all employees have equal opportunity to succeed.
To the extent that AbbVie’s employees, consultants, advisors, contractors and collaborators use intellectual property owned by others in their work for the company, disputes may arise as to the rights in related or resulting know-how and inventions.
In addition, AbbVie’s trade secrets may otherwise become known or be independently discovered by competitors. To the extent that AbbVie’s employees, consultants, advisors, contractors and collaborators use intellectual property owned by others in their work for the company, disputes may arise as to the rights in related or resulting know-how and inventions.
Humira is sold in numerous other markets worldwide, including Japan, China, Brazil and Australia, and accounted for approximately 27% of AbbVie's total net revenues in 2023. Skyrizi. Skyrizi (risankizumab) is an interleukin-23 (IL-23) inhibitor that selectively blocks IL-23 by binding to its p19 subunit.
Humira is sold in numerous other markets worldwide, including Japan, China, Brazil and Australia. Skyrizi. Skyrizi (risankizumab) is an interleukin-23 (IL-23) inhibitor that selectively blocks IL-23 by binding to its p19 subunit.
In addition, Venclexta is approved in combination with azacitidine, or decitabine, or low-dose cytarabine to treat adults with newly-diagnosed acute myeloid leukemia who are 75 years of age or older or have other medical conditions that prevent the use of standard chemotherapy. Epkinly .
In addition, Venclexta is approved in combination with azacitidine, or decitabine, or low-dose cytarabine to treat adults with newly-diagnosed acute myeloid leukemia who are 75 years of age or older or have other medical conditions that prevent the use of standard chemotherapy. Elahere. Elahere (mirvetuximab soravtansine-gynx) is an antibody-drug conjugate (ADC) used to treat certain types of cancer.
Continued approval may be contingent upon verification and description of clinical benefit in a confirmatory trial. Aesthetics products. AbbVie’s Aesthetics portfolio consists of facial injectables, plastics and regenerative medicine, body contouring and skincare products, which hold market-leading positions in the U.S. and in key markets around the world. These products are: Botox Cosmetic.
Aesthetics products. AbbVie’s Aesthetics portfolio consists of facial injectables, plastics and regenerative medicine, body contouring and skincare products, which hold market-leading positions in the U.S. and in key markets around the world. These products are: Botox Cosmetic.
In 2024, capital expenditures for pollution control are estimated to be approximately $22 million and operating expenditures are estimated to be approximately $45 million.
In 2025, capital expenditures for pollution control are estimated to be approximately $15 million and operating expenditures are estimated to be approximately $37 million.
Finally, AbbVie empowers managers and their teams with tools, tips and guidelines on effectively managing workloads, managing teams from a distance and supporting flexible work practices, including "Where We Work", AbbVie's hybrid work model, offering eligible employees predictable flexibility. New AbbVie employees are given a tailored onboarding experience for faster integration and to support performance.
Finally, AbbVie empowers managers and their teams with tools, tips and guidelines on effectively managing workloads and managing teams from a distance. New AbbVie employees are given a tailored onboarding experience for faster integration and to support performance.
Research and Development Activities AbbVie makes a significant investment in research and development and has numerous compounds (and complementary devices) in clinical development, including potential treatments for complex, life-threatening diseases.
AbbVie has robust business continuity and supplier monitoring programs. 7 | 2024 Form 10-K Research and Development Activities AbbVie makes a significant investment in research and development and has numerous compounds (and complementary devices) in clinical development, including potential treatments for complex, life-threatening diseases.
AbbVie has the rights to sell Creon and Synthroid only in the United States. 2023 Form 10-K | 4 Marketing, Sales and Distribution Capabilities AbbVie utilizes a combination of dedicated commercial resources, regional commercial resources and distributorships to market, sell and distribute its products worldwide.
The product is marketed as Linzess in the United States and as Constella outside of the United States. 2024 Form 10-K | 4 Marketing, Sales and Distribution Capabilities AbbVie utilizes a combination of dedicated commercial resources, regional commercial resources and distributorships to market, sell and distribute its products worldwide.
Imbruvica was one of the first medicines to receive a United States Food and Drug Administration (FDA) approval after being granted a Breakthrough Therapy Designation and is one of the few therapies to receive four separate designations.
These products are: Imbruvica. Imbruvica (ibrutinib) is an oral, once-daily therapy that inhibits a protein called Bruton's tyrosine kinase. Imbruvica was one of the first medicines to receive a United States Food and Drug Administration (FDA) approval after being granted a Breakthrough Therapy Designation and is one of the few therapies to receive four separate designations.
Eye care products. AbbVie’s eye care products address unmet needs and new approaches to help preserve and protect patients’ vision. These products are: Ozurdex . Ozurdex (dexamethasone intravitreal implant) is a corticosteroid implant that slowly releases medication over time. Injected directly into the back of the eye, it dissolves naturally and does not need to be removed.
Ozurdex (dexamethasone intravitreal implant) is a corticosteroid implant that slowly releases medication over time. Injected directly into the back of the eye, it dissolves naturally and does not need to be removed.
Creon (pancrelipase) is a pancreatic enzyme therapy for exocrine pancreatic insufficiency, a condition that occurs in patients with cystic fibrosis, chronic pancreatitis and several other conditions. Lupron.
Creon (pancrelipase) is a pancreatic enzyme therapy for exocrine pancreatic insufficiency, a condition that occurs in patients with cystic fibrosis, chronic pancreatitis and several other conditions. AbbVie has the rights to sell Creon only in the United States. Linzess/Constella.
In addition, the following patents, licenses and trademarks are significant: those related to ibrutinib (which is sold under the trademark Imbruvica), those related to risankizumab (which is sold under the trademark Skyrizi) and those related to upadacitinib (which is sold under the trademark Rinvoq).
In addition, the following patents, licenses and trademarks are significant: those related to risankizumab (which is sold under the trademark Skyrizi) and those related to upadacitinib (which is sold under the trademark Rinvoq). The United States composition of matter patents covering risankizumab and upadacitinib are expected to expire in 2033.
In addition, certain medical devices and components necessary for the manufacture of 7 | 2023 Form 10-K AbbVie products are provided by unaffiliated third party suppliers. AbbVie has robust business continuity and supplier monitoring programs.
In addition, certain medical devices and components necessary for the manufacture of AbbVie products are provided by unaffiliated third party suppliers.
Attracting and developing high-performing talent is essential to AbbVie’s continued success. AbbVie implements detailed talent attraction strategies, with an emphasis on STEM skill sets, a diverse talent base and other critical skillsets, including drug discovery, clinical development, market access and business development. AbbVie also invests in competitive compensation and benefits programs.
AbbVie implements detailed talent attraction strategies, with an emphasis on STEM skill sets and other critical skillsets, including drug discovery, clinical development, market access and business development. AbbVie seeks candidates with diverse backgrounds, experiences, and perspectives to enhance innovation and problem-solving. AbbVie also invests in competitive compensation and benefits programs.
Linzess (linaclotide) is a once-daily guanylate cyclase-C agonist used in adults to treat irritable bowel syndrome with constipation (IBS‑C) and chronic idiopathic constipation. The product is marketed as Linzess in the United States and as Constella outside of the United States. Synthroid. Synthroid (levothyroxine sodium tablets, USP) is used in the treatment of hypothyroidism.
Linzess (linaclotide) is a once-daily guanylate cyclase-C agonist used in adults to treat irritable bowel syndrome with constipation (IBS‑C) and chronic idiopathic constipation.
Having received its initial FDA approval in 2002, Botox Cosmetic is now approved for use in all major markets around the world. The Juvederm Collection of Fillers.
Botox Cosmetic is approved for use in all major markets around the world and is approved for the treatment of masseter muscle prominence in China. The Juvederm Collection of Fillers.
AbbVie has developed a deep talent base through ongoing investment in functional and leadership training and by sourcing world-class external talent, ensuring a sustainable talent pipeline. AbbVie continuously cultivates and enhances its working culture and embraces equality, diversity and inclusion as fundamental to the company's mission. Attracting and Developing Talent.
AbbVie has developed a deep talent base through ongoing investment in functional and leadership training and by sourcing world-class external talent, ensuring a sustainable talent pipeline. Attracting and Developing Talent. Attracting and developing high-performing talent is essential to AbbVie’s continued success.
And the United States composition of matter patent covering upadacitinib is expected to expire in 2033. AbbVie may rely, in some circumstances, on trade secrets to protect its technology. AbbVie seeks to protect its technology and product candidates, in part, by confidentiality agreements with its employees, consultants, advisors, contractors and collaborators.
AbbVie may rely, in some circumstances, on trade secrets to protect its technology. AbbVie seeks to protect its technology and product candidates, in part, by confidentiality agreements with its employees, consultants, advisors, contractors and collaborators. These agreements may be breached and AbbVie may not have adequate remedies for any breach.
Elahere (mirvetuximab soravtansine-gynx) is an antibody-drug conjugate (ADC) used to treat certain types of cancer. On November 14, 2022, the FDA granted accelerated approval for the treatment of adult patients with FRα positive, platinum-resistant epithelial ovarian, fallopian tube, or primary peritoneal cancer, who have received one to three prior systemic treatment regimens.
Elahere is approved in both the United States and the European Union for the treatment of adult patients with FRα positive, platinum-resistant epithelial ovarian, fallopian tube, or primary peritoneal cancer, who have received one to three prior systemic treatment regimens. Epkinly .
The price-setting process will conclude by August 1, 2024, and on September 1, 2024, the CMS will publish prices that will be applicable to the 10 drugs in the Medicare program beginning January 1, 2026.
In August 2024, the CMS published Medicare Part D prices that will be applicable to these medicines, including Imbruvica, beginning January 1, 2026. In January 2025, HHS, through the CMS, selected Vraylar and Linzess as two of the 15 medicines subject to government-set prices 2024 Form 10-K | 10 beginning in 2027.
Removed
AbbVie’s oncology products target some of the most complex and difficult-to-treat cancers. These products are: Imbruvica. Imbruvica (ibrutinib) is an oral, once-daily therapy that inhibits a protein called Bruton's tyrosine kinase.
Added
In the United States, Rinvoq is indicated for the treatment of moderate to severe active rheumatoid arthritis, for active psoriatic arthritis in adults and children 2 years of age and older, for moderate to severe active ulcerative colitis, for active ankylosing spondylitis and for active non-radiographic axial spondyloarthritis in adult patients who have an inadequate response or intolerance to one or more TNF blockers.
Removed
Lupron (leuprolide acetate), which is also marketed as Lucrin and Lupron Depot, is a product for the palliative treatment of advanced prostate cancer, treatment of endometriosis and central precocious puberty and for the preoperative treatment of patients with anemia caused by uterine fibroids. Lupron is approved for daily subcutaneous injection and one-month, three-month, four-month and six-month intramuscular injection. Linzess/Constella.
Added
RINVOQ is sold in numerous other markets worldwide, including China, Brazil, and Australia. In the United States, a liquid formulation (RINVOQ LQ) is also approved for use in pediatric patients with psoriatic arthritis and polyarticular juvenile idiopathic arthritis. 2024 Form 10-K | 2 Oncology products. AbbVie’s oncology products target some of the most complex and difficult-to-treat cancers.
Removed
The United States composition of matter patent covering ibrutinib is expected to expire in 2027, with pediatric regulatory exclusivity then extending until May 2028. However, no generic entry for any ibrutinib product is expected prior to March 30, 2032. The United States composition of matter patent covering risankizumab is expected to expire in 2033.
Added
Other neuroscience products include Vyalev/Produodopa, a subcutaneous 24-hour infusion of levodopa-based therapy approved for the treatment of motor fluctuations in adults with advanced Parkinson's disease, as well as other products. Eye care products. AbbVie’s eye care products address unmet needs and new approaches to help preserve and protect patients’ vision. These products are: Ozurdex .
Removed
These agreements may be breached and AbbVie may not have adequate remedies for any breach. In addition, AbbVie’s trade secrets may otherwise become known or be independently discovered by competitors.
Added
AbbVie is committed to equal employment opportunity and non-discrimination in all aspects of employment. Further, AbbVie is committed to pay equity and conducts pay equity analyses annually.
Removed
AbbVie's Equity, Equality, Diversity & Inclusion roadmap defines key global focus areas, objectives and associated initiatives, and includes implementation plans organized by business function and geography. AbbVie’s senior leaders have adopted formal goals aligned with executing this strategy.
Removed
Through December 2023, women represented 52 percent of management positions globally and in the United States, 37 percent of AbbVie's workforce was comprised of members of historically underrepresented populations, consistent with 2022. Further, AbbVie is committed to pay equity and conducts pay equity analyses annually.
Removed
Additional information about AbbVie's Equity, Equality, Diversity and 13 | 2023 Form 10-K Inclusion efforts can be found on the company's website at: https://www.abbvie.com/who-we-are/equity-equality-inclusion-diversity.html.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

53 edited+12 added−11 removed103 unchanged
Biggest changeHumira is facing competition from biosimilar products in the United States following the loss of exclusivity in 2023, which AbbVie anticipates will continue to cause a significant decline in Humira's revenue and could adversely affect AbbVie’s revenues and operating earnings. 2023 Form 10-K | 14 AbbVie's principal patents and trademarks are described in greater detail in Item 1, "Business—Intellectual Property Protection and Regulatory Exclusivity" and Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations," and litigation regarding these patents is described in Item 3, "Legal Proceedings." AbbVie's major products could lose patent protection earlier than expected, which could adversely affect AbbVie's revenues and operating earnings.
Biggest changeAbbVie's principal patents and trademarks are described in greater detail in Item 1, "Business—Intellectual Property Protection and Regulatory Exclusivity" and Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations," and litigation regarding these patents is described in Item 3, "Legal Proceedings." 2024 Form 10-K | 14 AbbVie's major products could lose patent protection earlier than expected, which could adversely affect AbbVie's revenues and operating earnings.
Many other factors can affect AbbVie's results of operations, cash flows and financial condition, including: • changes in or interpretations of laws and regulations, including changes in accounting standards, taxation requirements, product marketing application standards, data privacy laws, particularly in the European Union and the United States and environmental laws; • differences between the fair value measurement of assets and liabilities and their actual value, particularly for pension and post-employment benefits, stock-based compensation, intangibles and goodwill; and for contingent liabilities such as litigation and contingent consideration, the absence of a recorded amount, or an amount recorded at the minimum, compared to the actual amount; • changes in the rate of inflation (including the cost of raw materials, commodities and supplies), interest rates, market value of AbbVie's equity investments and the performance of investments held by it or its employee benefit trusts; • changes in the creditworthiness of counterparties that transact business with or provide services to AbbVie or its employee benefit trusts; • environmental liabilities in connection with AbbVie’s manufacturing processes and distribution logistics, including the handling of hazardous materials; • changes in the ability of third parties that provide information technology, accounting, human resources, payroll and other outsourced services to AbbVie to meet their contractual obligations to AbbVie; • the failure, or perceived failure, of achieving environmental, social and governance objectives; • information loss or damage to AbbVie's reputation, brand, image or goodwill due to increased use of social media platforms; • business interruptions stemming from natural disasters, such as climate change, earthquakes, hurricanes, flooding, fires, or efforts taken by third parties to prevent or mitigate such disasters; and • changes in business, economic and political conditions, including: war, political instability, terrorist attacks, the threat of future terrorist activity and related military action; natural disasters; the cost and availability of insurance due to any of the foregoing events; labor disputes, strikes, slow-downs, or other forms of labor or union activity; and pressure from third-party interest groups.
Many other factors can affect AbbVie's results of operations, cash flows and financial condition, including: • changes in or interpretations of laws and regulations, including changes in accounting standards, taxation requirements, product marketing application standards, data privacy laws, particularly in the European Union and the United States and environmental laws; • differences between the fair value measurement of assets and liabilities and their actual value, particularly for pension and post-employment benefits, stock-based compensation, intangibles and goodwill; and for contingent liabilities such as litigation and contingent consideration, the absence of a recorded amount, or an amount recorded at the minimum, compared to the actual amount; • changes in the rate of inflation (including the cost of raw materials, commodities and supplies), interest rates, market value of AbbVie's equity investments and the performance of investments held by it or its employee benefit trusts; • changes in the creditworthiness of counterparties that transact business with or provide services to AbbVie or its employee benefit trusts; • environmental liabilities in connection with AbbVie’s manufacturing processes and distribution logistics, including the handling of hazardous materials; • changes in the ability of third parties that provide information technology, accounting, human resources, payroll and other outsourced services to AbbVie to meet their contractual obligations to AbbVie; • the failure, perceived failure, or pursuit of achieving environmental, social and governance objectives; • information loss or damage to AbbVie's reputation, brand, image or goodwill due to increased use of social media platforms; • business interruptions stemming from natural disasters, such as climate change, earthquakes, hurricanes, flooding, fires, or efforts taken by third parties to prevent or mitigate such disasters; and • changes in business, economic and political conditions, including: war, political instability, terrorist attacks, the threat of future terrorist activity and related military action; natural disasters; pandemics and epidemics, the cost and availability of insurance due to any of the foregoing events; labor disputes, strikes, slow-downs, or other forms of labor or union activity; and pressure from third-party interest groups.
Such breaches may cause sensitive data, including intellectual property, trade secrets or personal information belonging to AbbVie, its patients, customers or business partners, to be exposed to unauthorized persons or to the public. To date, neither AbbVie’s business nor operations have been materially impacted by such incidents, however, the healthcare industry remains a target of cyber-attacks.
Such breaches may cause sensitive data, including intellectual property, trade secrets or personal information belonging to AbbVie, its patients, customers, employees or business partners, to be exposed to unauthorized persons or to the public. To date, neither AbbVie’s business nor operations have been materially impacted by such incidents, however, the healthcare industry remains a target of cyber-attacks.
Failure to successfully discover, develop, manufacture and sell biologics—including Humira, Skyrizi and Botox —could have a negative impact on AbbVie's business and results of operations. New products and technological advances by AbbVie's competitors may negatively affect AbbVie's results of operations.
Failure to successfully discover, develop, manufacture and sell biologics—including Humira, Skyrizi, Botox and Creon —could have a negative impact on AbbVie's business and results of operations. New products and technological advances by AbbVie's competitors may negatively affect AbbVie's results of operations.
In the United States, the European Union and other countries, AbbVie's business has experienced downward pressure on product pricing, and this pressure could increase in the future. AbbVie is subject to increasing public and legislative pressure with respect to pharmaceutical pricing.
In the United States, European Union member states and other countries, AbbVie's business has experienced downward pressure on product pricing, and this pressure could increase in the future. AbbVie is subject to increasing public and legislative pressure with respect to pharmaceutical pricing.
From time to time, AbbVie will issue additional options or other stock-based awards to its employees under AbbVie's employee benefits plans. 23 | 2023 Form 10-K In addition, AbbVie's amended and restated certificate of incorporation authorizes AbbVie to issue, without the approval of AbbVie's stockholders, one or more classes or series of preferred stock having such designation, powers, preferences and relative, participating, optional and other special rights, including preferences over AbbVie's common stock respecting dividends and distributions, as AbbVie's board of directors generally may determine.
From time to time, AbbVie will issue additional options or other stock-based awards to its employees under AbbVie's employee benefits plans. 23 | 2024 Form 10-K In addition, AbbVie's amended and restated certificate of incorporation authorizes AbbVie to issue, without the approval of AbbVie's stockholders, one or more classes or series of preferred stock having such designation, powers, preferences and relative, participating, optional and other special rights, including preferences over AbbVie's common stock respecting dividends and distributions, as AbbVie's board of directors generally may determine.
Although most of the challenges to AbbVie's intellectual property have come from other businesses, governments may also challenge intellectual property rights. For example, court decisions and potential legislation relating to patents, such as legislation regarding biosimilars, and other regulatory initiatives may result in further erosion of intellectual property protection.
Although most of the challenges to AbbVie's intellectual property have come from other businesses, governments have and are expected to also challenge intellectual property rights. For example, court decisions and potential legislation relating to patents, such as legislation regarding biosimilars, and other regulatory initiatives may result in further erosion of intellectual property protection.
For more information, see Item 5, "Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities." AbbVie's ability to pay dividends and repurchase shares under its share repurchase program will depend on its ongoing ability to generate cash from operations and access capital markets.
For more information, see Item 5, "Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities." AbbVie's ability to pay dividends and repurchase shares under its stock repurchase program will depend on its ongoing ability to generate cash from operations and access capital markets.
These provisions may also prevent or discourage attempts to remove and replace incumbent directors. 2023 Form 10-K | 24 CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains certain forward-looking statements regarding business strategies, market potential, future financial performance and other matters.
These provisions may also prevent or discourage attempts to remove and replace incumbent directors. 2024 Form 10-K | 24 CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains certain forward-looking statements regarding business strategies, market potential, future financial performance and other matters.
The risks associated with AbbVie's operations outside the United States include: • fluctuations in currency exchange rates; • changes in medical reimbursement policies and programs and pricing restrictions; • multiple legal and regulatory requirements that are subject to change and that could restrict AbbVie's ability to manufacture, market and sell its products; • differing local product preferences and product requirements; • trade protection measures and import or export licensing requirements; • international trade disruptions or disputes; • difficulty in establishing, staffing and managing operations; • differing labor regulations; • potentially negative consequences from changes in or interpretations of tax laws; • political and economic instability; • sovereign debt issues; • price and currency exchange controls, limitations on participation in local enterprises, expropriation, nationalization and other governmental action and regulation; • inflation, recession and fluctuations in interest rates; • restrictions on transfers of funds; • potential deterioration in the economic position and credit quality of certain non-U.S. countries; and • potential penalties or other adverse consequences for violations of anti-corruption, anti-bribery and other similar laws and regulations, including the United States Foreign Corrupt Practices Act and the United Kingdom Bribery Act.
The risks associated with AbbVie's operations outside the United States include: • fluctuations in currency exchange rates; • changes in medical reimbursement policies and programs and pricing restrictions; • multiple legal and regulatory requirements that are subject to change and that could restrict AbbVie's ability to manufacture, market and sell its products; • differing local product preferences and product requirements; • trade protection measures and import or export licensing requirements; • international trade disruptions or disputes; • difficulty in establishing, staffing and managing operations; • differing labor regulations; • potentially negative consequences from changes in or interpretations of tax laws; • political and economic instability; • conflicts or crises in individual countries or regions, including terrorist activities or wars; • sovereign debt issues; • price and currency exchange controls, limitations on participation in local enterprises, expropriation, nationalization and other governmental action and regulation; • inflation, recession and fluctuations in interest rates; • restrictions on transfers of funds; • potential deterioration in the economic position and credit quality of certain non-U.S. countries; and • potential penalties or other adverse consequences for violations of anti-corruption, anti-bribery and other similar laws and regulations, including the United States Foreign Corrupt Practices Act and the United Kingdom Bribery Act.
In addition, beginning in January 2025, under the IRA, the 70% coverage gap discount program will be replaced by a 10% manufacturer discount for all Medicare Part D beneficiaries that have met their deductible and incurred out of pocket drug costs below a $2,000 threshold and a 20% discount for beneficiaries that have incurred out of pocket drug costs above the $2,000 threshold under the new Part D benefit redesign.
In addition, beginning in January 2025, under the IRA, the 70% coverage gap discount program was replaced by a 10% manufacturer discount for all Medicare Part D beneficiaries that have met their deductible and incurred out of pocket drug costs below a $2,000 threshold and a 20% discount for beneficiaries that have incurred out of pocket drug costs above the $2,000 threshold under the new Part D benefit redesign.
A high rate of failure in the biopharmaceutical industry is inherent in the research and development of new products, and failure can occur at any point in the research and development process, including after significant funds have been invested.
A high rate of failure in the biopharmaceutical industry is inherent in the research and development of new products, and failure can occur at any point in the research and development process, including after significant resources have been invested.
Problems may arise during manufacturing for a variety of reasons, including equipment malfunction, failure to follow specific protocols and procedures, problems with raw materials, delays related to the construction of new facilities or the expansion of existing facilities, including those intended to support future demand for AbbVie's products, changes in manufacturing production sites and limits to manufacturing capacity due to regulatory requirements, changes in the types of products produced, physical limitations that could inhibit continuous supply, man-made or natural disasters and environmental factors.
Problems may arise during manufacturing for a variety of reasons, including equipment malfunction, failure to follow specific protocols and procedures, problems with raw materials, delays related to the construction of new facilities or the expansion of existing facilities, including those intended to support future demand for AbbVie's products, changes in manufacturing production sites and limits to manufacturing capacity due to regulatory requirements, changes in the types of products produced, physical limitations that could inhibit continuous supply, labor shortages, supply chain disruption, pandemics, man-made or natural disasters and environmental factors.
AbbVie is dependent on wholesale distributors for distribution of its products in the United States and, accordingly, its business and results of operations could be adversely affected if they encounter financial or other difficulties. In 2023, three wholesale distributors (McKesson Corporation, Cardinal Health, Inc. and AmerisourceBergen Corporation) accounted for substantially all of AbbVie's pharmaceutical product sales in the United States.
AbbVie is dependent on wholesale distributors for distribution of its products in the United States and, accordingly, its business and results of operations could be adversely affected if they encounter financial or other difficulties. In 2024, three wholesale distributors (McKesson Corporation, Cardinal Health, Inc. and Cencora, Inc.) accounted for substantially all of AbbVie's pharmaceutical product sales in the United States.
This could result in the loss of intellectual property rights or protection, delay the development and sale of potential pharmaceutical products, affect the effective sale and delivery of AbbVie's commercialized products and lead to lengthy and expensive litigation, administrative proceedings or arbitration.
Such disputes could result in AbbVie's loss of intellectual property rights or protection, delay the development and sale of potential pharmaceutical products, affect the effective sale and delivery of AbbVie's commercialized products and lead to lengthy and expensive litigation, administrative proceedings or arbitration.
If the commercialization of AbbVie's principal products is unsuccessful, AbbVie's revenues and financial condition could be adversely affected. 2023 Form 10-K | 20 AbbVie may acquire other businesses, license rights to technologies or products, form alliances, or dispose of assets, which could cause it to incur significant expenses and could negatively affect profitability.
If the commercialization of AbbVie's principal products is unsuccessful, AbbVie's revenues and financial condition could be adversely affected. AbbVie may acquire other businesses, license rights to technologies or products, form alliances, or dispose of assets, which could cause it to incur significant expenses and could negatively affect profitability.
Rebates related to government programs, such as fee-for-service Medicaid or Medicaid managed care programs, arise from laws and regulations. AbbVie cannot predict with certainty if additional government initiatives to contain health care 2023 Form 10-K | 16 costs or other factors could lead to new or modified regulatory requirements that include higher or incremental rebates or discounts.
Rebates related to government programs, such as fee-for-service Medicaid or Medicaid managed care programs, arise from laws and regulations. AbbVie cannot predict with certainty if additional government initiatives to contain health care costs or other factors could lead to new or modified regulatory requirements that include higher or incremental rebates or discounts.
AbbVie's reputation and business could suffer harm as a result of counterfeit 2023 Form 10-K | 22 or diverted drugs sold under its brand name which may also result in reduced revenues that could negatively affect our results of operation. Other factors can have a material adverse effect on AbbVie's profitability and financial condition.
AbbVie's reputation and business could suffer harm as a result of counterfeit or diverted drugs sold under its brand name which may also result in reduced revenues that could negatively affect our results of operation. Other factors can have a material adverse effect on AbbVie's profitability and financial condition.
AbbVie could also experience negative effects on its reported results of operations from acquisition or disposition-related charges, amortization of expenses related to intangibles and charges for impairment of long-term assets. These effects could cause a deterioration of AbbVie's credit rating and result in increased borrowing costs and interest expense.
AbbVie could also 2024 Form 10-K | 20 experience negative effects on its reported results of operations from acquisition or disposition-related charges, amortization of expenses related to intangibles and charges for impairment of long-term assets. These effects could cause a deterioration of AbbVie's credit rating and result in increased borrowing costs and interest expense.
The manufacture of many of AbbVie's products is a highly exacting and complex process, and if AbbVie or one of its suppliers encounters problems manufacturing AbbVie's products, AbbVie's business could suffer. The manufacture of many of AbbVie's products is a highly exacting and complex process, due in part to strict regulatory requirements.
The manufacture of many of AbbVie's products is a highly exacting and complex process requiring critical environmental controls, and if AbbVie or one of its suppliers encounters problems manufacturing AbbVie's products, AbbVie's business could suffer. The manufacture of many of AbbVie's products is a highly exacting and complex process, due in part to strict regulatory requirements.
In such case, the trading price of AbbVie's common stock could decline. Risks Related to AbbVie's Business The expiration or loss of patent protection and licenses, including the loss of exclusivity for Humira and increased competition from biosimilars, may adversely affect AbbVie's revenues and operating earnings.
In such case, the trading price of AbbVie's common stock could decline. Risks Related to AbbVie's Business The expiration or loss of patent protection and licenses, including the loss of exclusivity for any of our products and increased competition from generics and biosimilars, may adversely affect AbbVie's revenues and operating earnings.
Generally, these government prices can apply as soon as nine years (for small-molecule drugs) or 13 years (for biological products) from their FDA approval and will be capped at a statutory ceiling price that is likely to represent a significant discount from average prices to wholesalers and direct purchasers. In August 2023, the U.S.
Generally, these government prices can apply as soon as nine years (for small-molecule drugs) or 13 years (for biological products) from their FDA approval and will be capped at a statutory ceiling price that is likely to represent a significant discount from average prices to wholesalers and direct purchasers.
The prevalence of counterfeit/diverted medicines is an industry-wide issue due to a variety of factors, including the adoption of e-commerce, which increased during the COVID-19 pandemic, greatly enhancing consumers' ability to obtain prescriptions and other medical treatments via the internet in lieu of traditional brick and mortar pharmacies.
The prevalence of counterfeit/diverted medicines is an industry-wide issue due to a variety of factors, including the adoption of e-commerce, greatly enhancing consumers' ability to obtain prescriptions and other medical treatments via the internet in lieu of traditional brick and mortar pharmacies.
Cybersecurity attacks and incidents are increasing in their frequency, sophistication and intensity and, due to the nature of some of these attacks, there 21 | 2023 Form 10-K is a risk that they may remain undetected for a period of time.
Cybersecurity attacks and incidents are increasing in their frequency, sophistication and intensity and, due to the nature of some of these attacks, there is a risk that they may remain undetected for a period of time.
This can expose patients to greater risks as the internet is a preferred vehicle for dangerous counterfeit/diverted product offers and scams because of the anonymity it affords.
This can expose patients to greater risks as the internet is a preferred vehicle for dangerous counterfeit/diverted product offers and scams because of the anonymity it 2024 Form 10-K | 22 affords.
If problems arise during the production of a batch of product, such batch of product may have to be 17 | 2023 Form 10-K discarded and AbbVie may experience product shortages or incur added expenses.
If problems arise during the production of a batch of product, such batch of product may have to be discarded and AbbVie may experience product shortages or incur added expenses.
Any of these events could have a material adverse effect on AbbVie's profitability and financial condition. AbbVie's research and development efforts may not succeed in developing and marketing commercially successful products and technologies, which may cause its revenues and profitability to decline.
Any of these events could have a material adverse effect on AbbVie's profitability and financial condition. AbbVie's research and development efforts may not succeed in developing products and technologies that can be successfully commercialized, which may cause its revenues and profitability to decline.
Products that appear promising in development may fail to reach the market for numerous reasons, including failure to demonstrate effectiveness, safety concerns, superior safety or efficacy of competing therapies, failure to achieve positive clinical or pre-clinical outcomes beyond the current standards of care, inability to obtain necessary regulatory approvals or delays in the approval of new products and new indications, limited scope of approved uses, excessive costs to manufacture or the failure to obtain or maintain intellectual property rights, or infringement of the intellectual property rights of others. 15 | 2023 Form 10-K Decisions about research studies made early in the development process of a pharmaceutical product candidate can affect the marketing strategy once such candidate receives approval.
Products that appear promising in development may fail to reach the market for numerous reasons, including failure to demonstrate effectiveness, safety concerns, superior safety or efficacy of competing therapies, failure to achieve positive clinical or pre-clinical outcomes beyond the current standards of care, inability to obtain necessary regulatory approvals or delays in the approval of new products and new indications, limited scope of approved uses, excessive costs to manufacture or the failure to obtain or maintain intellectual property rights, or infringement of the intellectual property rights of others.
As of December 31, 2023, the carrying value of AbbVie’s developed product rights and other intangible assets was $55.6 billion and the carrying value of AbbVie’s goodwill was $32.3 billion. AbbVie’s developed product rights are stated at cost, less accumulated amortization.
As of December 31, 2024, the carrying value of AbbVie’s developed product rights and other intangible assets was $60.1 billion and the carrying value of AbbVie’s goodwill was $35.0 billion. AbbVie’s developed product rights are stated at cost, less accumulated amortization.
In addition, proposals emerge from time to time for legislation to further encourage the early and rapid approval of generic drugs or biosimilars. Any such proposals that are enacted into law could increase the impact of generic competition. Large pharmaceutical companies and generics manufacturers of pharmaceutical products continue to expand into the biotechnology field and form partnerships to pursue biosimilars.
In addition, proposals emerge from time to time for legislation to further encourage the early and rapid approval of generic drugs or biosimilars. Any such proposals that are enacted into law could increase the impact of generic or biosimilar competition.
It is expected that the U.S. healthcare industry will continue to be subject to increasing regulation as well as political and legal action, as future proposals to reform the healthcare system are considered by the executive branch, Congress and state legislatures.
It is expected that the U.S. healthcare industry will continue to be subject to increasing regulation as well as political and legal action, as future proposals to reform the healthcare system are considered by federal, state and local governments. Changes in healthcare policy may introduce additional and significant changes to healthcare regulation and the healthcare industry.
Failures by these parties to meet their contractual, regulatory, or other obligations to AbbVie, or any disruption in the relationships between AbbVie and these third parties, could have an adverse effect on AbbVie's pharmaceutical pipeline and business.
AbbVie depends on alliances and joint ventures with pharmaceutical and biotechnology companies for a portion of the products in its near-term pharmaceutical pipeline. Failures by these parties to meet their contractual, regulatory, or other obligations to AbbVie, or any disruption in the relationships between AbbVie and these third parties, could have an adverse effect on AbbVie's pharmaceutical pipeline and business.
More detailed studies may demonstrate additional benefits that can help in the marketing, but they also consume time and resources and may delay submitting the pharmaceutical product candidate for regulatory approval.
Decisions about research studies made early in the development process of a pharmaceutical product candidate can affect the marketing strategy once such candidate receives regulatory approval. More detailed studies may demonstrate additional benefits that can help in the marketing, but they also consume time and resources and may delay submitting the pharmaceutical product candidate for regulatory approval.
This could, among other things, lead to increased costs, lost revenue, damage to customer relations, time and expense spent investigating the cause and, depending on the cause, similar losses with respect to other batches or products. If problems are not discovered before the product is released to the market, recall and product liability costs may also be incurred.
This could, among other things, lead to increased costs, lost revenue, damage to customer relations, time and expense spent investigating the cause and, depending on the cause, similar losses with respect to other batches or products.
Certain of these applications and systems are managed, hosted, provided or used by third parties. Data privacy or security breaches of our internal systems or those of our information technology vendors may in the future result in the failure of critical business operations.
Data privacy or security breaches of our internal systems or those of our information technology vendors may in the future result in the failure of critical business operations.
AbbVie depends on information technology and a failure of, or significant disruption to, those systems could have a material adverse effect on AbbVie's business. AbbVie relies on sophisticated software applications and complex information technology systems (including cloud services) to operate its business, which are inherently vulnerable to malicious intrusion, random attack, loss of data privacy, disruption, degradation or breakdown.
AbbVie relies on sophisticated software applications and complex information technology systems (including cloud services) to operate its business, which are inherently vulnerable to malicious intrusion, random attack, loss of data privacy, disruption, degradation or breakdown. Certain of these applications and systems are managed, hosted, provided or used by third parties.
In addition, AbbVie’s cyber insurance may not be sufficient to cover the financial, legal, business or reputational losses that may result from an interruption or breach of AbbVie systems or those of our third-party vendors.
In addition, AbbVie’s cyber insurance may not be sufficient to 21 | 2024 Form 10-K cover the financial, legal, business or reputational losses that may result from an interruption or breach of AbbVie systems or those of our third-party vendors. Additionally, AbbVie utilizes artificial intelligence (AI) and other emerging technologies in select applications to support its operations.
The failure of a critical third party service provider to meet its obligations could have a material adverse impact on AbbVie’s operations and results.
Some of these third party providers are subject to legal and regulatory requirements, privacy and security risks and market risks of their own. The failure of a critical third party service provider to meet its obligations could have a material adverse impact on AbbVie’s operations and results.
Product liability claims and lawsuits and safety alerts or product recalls, regardless of their ultimate outcome, may have a material adverse effect on AbbVie's business, results of operations and reputation and on its ability to attract and retain customers. 2023 Form 10-K | 18 Consequences may also include additional costs, a decrease in market share for the product in question, lower revenue and exposure to other claims.
Product liability claims and lawsuits and safety alerts or product recalls, regardless of their ultimate outcome, may have a material adverse effect on AbbVie's business, results of operations and reputation and on its ability to attract and retain customers.
AbbVie cannot state with certainty when or whether any of its products under development will be launched, whether it will be able to develop, license, or otherwise acquire compounds or products, or whether any products will be commercially successful.
AbbVie's innovations may not be accepted quickly in the marketplace because of existing clinical practices or uncertainty over third-party reimbursement. AbbVie cannot state with certainty when or whether any of its products under development will be launched, whether it will be able to develop, license, or otherwise acquire compounds or products, or whether any products will be commercially successful.
AbbVie relies on suppliers, vendors and other third party service providers to research, develop, manufacture, commercialize, promote and sell its products. Reliance on third party manufacturers reduces AbbVie’s oversight and control of the manufacturing process. Some of these third party providers are subject to legal and regulatory requirements, privacy and security risks and market risks of their own.
AbbVie relies on suppliers, vendors and other third party service providers to research, develop, manufacture, commercialize, promote and sell its products. In addition, AbbVie relies on third party service providers for support of its information technology services. Reliance on third party manufacturers reduces AbbVie’s oversight and control of the manufacturing process.
The international nature of AbbVie's business subjects it to additional business risks that may cause its revenue and profitability to decline. AbbVie's business is subject to risks associated with doing business internationally, including in emerging markets. Net revenues outside of the United States made up approximately 23% of AbbVie's total net revenues in 2023.
AbbVie's business is subject to risks associated with doing business internationally, including in emerging markets. Net revenues outside of the United States made up approximately 24% of AbbVie's total net revenues in 2024.
AbbVie uses raw materials and components in its pharmaceutical and biologic manufacturing processes, including those sourced from single suppliers, and an interruption in the supply of those raw materials and components could adversely affect AbbVie's business and results of operations. AbbVie uses raw materials and components in its pharmaceutical and biologic manufacturing processes that may be sourced from single suppliers.
AbbVie uses raw materials and components in its pharmaceutical and biologic manufacturing processes that may be sourced from single suppliers.
Department of Health and Human Services, through the CMS, selected Imbruvica as one of the first 10 medicines subject to government-set prices beginning in 2026. The price-setting process will conclude by August 1, 2024, and on September 1, 2024, the CMS will publish prices that will be applicable to the 10 drugs in the Medicare program beginning January 1, 2026.
In August 2023, HHS, through the CMS, selected Imbruvica as one of the first 10 medicines subject to government-set prices beginning in 2026. In August 2024, the CMS published Medicare Part D prices that will be applicable to these medicines, including Imbruvica, beginning January 1, 2026.
Other rebate and discount programs arise from contractual agreements with private payers. Various factors, including market factors and the ability of private payers to control patient access to products, may provide payers the leverage to negotiate higher or additional rebates or discounts that could have a material adverse effect on AbbVie's operations.
Various factors, including market factors and the ability of private payers to control patient access to products, may provide payers the leverage to negotiate higher or additional rebates or discounts that could have a material adverse effect on AbbVie's operations. 2024 Form 10-K | 16 A portion of AbbVie's near-term pharmaceutical pipeline relies on collaborations with third parties, which may adversely affect the development and sale of its products.
A significant portion of AbbVie's revenue and operating earnings are derived from several major products. Third parties or government authorities may challenge or seek to invalidate or circumvent AbbVie's patents and patent applications.
Third parties or government authorities may challenge or seek to invalidate or circumvent AbbVie's patents and patent applications.
AbbVie cannot guarantee that a proper balance of speed and testing will be made with respect to each pharmaceutical product candidate or that decisions in this area would not adversely affect AbbVie's results of operations.
AbbVie cannot guarantee that a proper balance of speed and testing will be made with respect to each pharmaceutical product candidate or that decisions in this area would not adversely affect AbbVie's results of operations. 15 | 2024 Form 10-K Even if AbbVie successfully develops and markets new products or enhancements to its existing products, they may be quickly rendered obsolete by changing clinical preferences, changing industry standards, or competitors' innovations.
AbbVie evaluates its risks and has determined that the cost of obtaining product liability insurance outweighs the likely benefits of the coverage that is available and, as such, AbbVie's product liability losses are self-insured.
AbbVie evaluates its risks and has determined that the cost of obtaining product liability insurance outweighs the likely benefits of the coverage that is available and, as such, AbbVie's product liability losses are self-insured. 2024 Form 10-K | 18 AbbVie is also the subject of other claims, legal proceedings and investigations in the ordinary course of business, which relate to intellectual property, commercial, securities and other matters.
All of these competitors may introduce new products or develop technological advances that compete with AbbVie’s products in therapeutic areas such as immunology, oncology, aesthetics, neuroscience and eye care. In addition, as AbbVie products lose exclusivity, competition surrounding such products will increase and generic and biosimilar products will increasingly penetrate the markets.
AbbVie competes with other research-based pharmaceutical and biotechnology companies that research, develop, manufacture, market and sell proprietary pharmaceutical products and biologics. All of these competitors may introduce new products or develop technological advances that compete with AbbVie’s products in therapeutic areas such as immunology, oncology, aesthetics, neuroscience and eye care.
In addition, violations of these laws and regulations, or allegations of such violations, could impose new obligations on AbbVie, require it to change its business practices and restrict its operations. 19 | 2023 Form 10-K Public health outbreaks, epidemics or pandemics, such as the coronavirus (COVID-19), have had, and could in the future have, an adverse impact on AbbVie’s operations and financial condition.
In addition, violations of these laws and regulations, or allegations of such violations, could impose new obligations on AbbVie, require it to change its business practices and restrict its operations. 19 | 2024 Form 10-K The international nature of AbbVie's business subjects it to additional business risks that may cause its revenue and profitability to decline.
Expiration of or successful challenges to AbbVie’s applicable patent rights could also trigger competition from other products, assuming any relevant exclusivity period has expired. As a result, AbbVie could face increased litigation and administrative proceedings with respect to the validity and/or scope of patents relating to its biologic products.
As competitors obtain marketing approval for biosimilars referencing AbbVie’s biologic products, AbbVie’s products may become subject to competition from such biosimilars, with the attendant competitive pressure and consequences. Expiration of or successful challenges to AbbVie’s applicable patent rights could also trigger competition from other products, assuming any relevant exclusivity period has expired.
See Note 15, "Legal Proceedings and Contingencies" to the Consolidated Financial Statements included under Item 8, "Financial Statements and Supplementary Data." AbbVie cannot predict with certainty the outcome of these proceedings. AbbVie is subject to governmental regulations, and it can be costly to comply with these regulations and to develop compliant products and processes.
Adverse outcomes in such claims, legal proceedings and investigations may also adversely affect AbbVie’s business, results of operations and reputation. See Note 15, "Legal Proceedings and Contingencies" to the Consolidated Financial Statements included under Item 8, "Financial Statements and Supplementary Data." AbbVie cannot predict with certainty the outcome of these proceedings.
AbbVie cannot predict with certainty the timing or impact of the introduction by competitors of new products or technological advances.
These advantages may make it difficult for us to compete with them successfully to discover, develop and market new products and for our current products to compete with new products or indications they may bring to market. AbbVie cannot predict with certainty the timing or impact of the introduction by competitors of new products or technological advances.
Removed
Companies have developed and are developing biosimilars that compete with AbbVie’s biologic products, including Humira. As competitors obtain marketing approval for biosimilars referencing AbbVie’s biologic products, AbbVie’s products may become subject to competition from such biosimilars, with the attendant competitive pressure and consequences.
Added
Large pharmaceutical companies and generics manufacturers of pharmaceutical products continue to expand into the biotechnology field and form partnerships to pursue biosimilars. Companies have developed and are developing biosimilars that compete with AbbVie’s biologic products.
Removed
For example, Humira accounted for approximately 27% of AbbVie's total net revenues in 2023.
Added
As a result, AbbVie could face increased litigation and administrative proceedings with respect to the validity and/or scope of patents relating to its biologic products. A significant portion of AbbVie's revenues and operating earnings are derived from several major products.
Removed
Even if AbbVie successfully develops and markets new products or enhancements to its existing products, they may be quickly rendered obsolete by changing clinical preferences, changing industry standards, or competitors' innovations. AbbVie's innovations may not be accepted quickly in the marketplace because of existing clinical practices or uncertainty over third-party reimbursement.
Added
Specifically, Skyrizi, Humira and Rinvoq each represented greater than 10% of AbbVie's total net revenues and, in aggregate, these products accounted for approximately 47% of total net revenues in 2024. Humira has faced competition from biosimilar products in the United States following the loss of exclusivity in 2023.
Removed
Additionally, changes to U.S. tax laws now require (i) a 15% alternative minimum tax generally applied to U.S. corporations on adjusted financial statement income beginning in 2023 and (ii) a non-deductible 1% excise tax provision on net stock repurchases.
Added
AbbVie anticipates such loss will continue to cause a significant decline in Humira's revenue and could adversely affect AbbVie’s revenues and operating earnings.
Removed
A portion of AbbVie's near-term pharmaceutical pipeline relies on collaborations with third parties, which may adversely affect the development and sale of its products. AbbVie depends on alliances and joint ventures with pharmaceutical and biotechnology companies for a portion of the products in its near-term pharmaceutical pipeline.
Added
In January 2025, HHS, through the CMS, selected Vraylar and Linzess as two of the 15 medicines subject to government-set prices in Medicare Part D beginning in 2027.
Removed
AbbVie competes with other research-based pharmaceutical and biotechnology companies that research, develop, manufacture, market and sell proprietary pharmaceutical products and biologics. For example, Humira competes with anti-TNF products and other competitive products intended to treat a number of disease states and Mavyret/Maviret competes with other available hepatitis C treatment options.
Added
Other rebate and discount programs arise from contractual agreements with private payers.
Removed
In addition, in the past few years, a number of other companies have started to develop, have successfully developed and/or are currently marketing products that are being positioned as competitors to Botox.
Added
In addition, as AbbVie products lose exclusivity, competition surrounding such products will increase and generic and biosimilar products will increasingly penetrate the markets. Furthermore, consolidation among certain pharmaceutical and biotechnology companies can enhance such advantages.
Removed
For example, lawsuits are pending against Allergan, AbbVie’s subsidiary, and certain of its former officers alleging they made misrepresentations and omissions regarding Allergan’s textured breast implants.
Added
If problems are not discovered before the product is released to the market, recall and product liability costs may also be incurred. 17 | 2024 Form 10-K AbbVie uses raw materials and components in its pharmaceutical and biologic manufacturing processes, including those sourced from single suppliers around the world, and an interruption in the supply of those raw materials and components could adversely affect AbbVie's business and results of operations.
Removed
AbbVie is also the subject of other claims, legal proceedings and investigations in the ordinary course of business, which relate to intellectual property, commercial, securities and other matters. Adverse outcomes in such claims, legal proceedings and investigations may also adversely affect AbbVie’s business, results of operations and reputation.
Added
Consequences may also include additional costs, a decrease in market share for the product in question, lower revenue and exposure to other claims. Additionally, some of these matters involve numerous plaintiffs and parties seeking large or indeterminate financial claims and may remain unresolved for several years.
Removed
Public health outbreaks, epidemics or pandemics have had, and could in the future have, an adverse impact on AbbVie’s operations and financial condition. The pandemic caused by the novel strain of coronavirus (COVID-19) caused many countries, including the United States, to declare national emergencies and implement preventive measures such as travel bans and shelter in place or total lock-down orders.
Added
AbbVie is subject to governmental regulations, and it can be costly to comply with these regulations and to develop compliant products and processes.
Removed
The continuation or re-implementation of these bans and orders remains uncertain. The COVID-19 pandemic caused AbbVie to modify certain of its business practices, and AbbVie may take further actions as may be required by government authorities or as AbbVie determines are in the best interests of AbbVie’s employees, patients, customers and business partners.
Added
AbbVie depends on information technology and a failure of, or significant disruption to, those systems, or a failure to adequately adopt emerging technologies such as artificial intelligence, could have a material adverse effect on AbbVie's business.
Added
These technologies may present opportunities for AbbVie's business but may also entail risks, including that AI-generated analyses utilized by AbbVie could be deficient or exacerbate regulatory, cybersecurity or other significant risks. Further, our failure to effectively implement these technologies could hinder our ability to compete, as competitors' advancements in AI may lead to more efficient operations.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

8 edited+2 added−0 removed15 unchanged
Biggest changeWe take measures to regularly update and improve our cybersecurity program, including conducting independent program assessments, penetration testing and scanning of our systems for vulnerabilities. We follow the National Institute of Standards and Technology (NIST) Cybersecurity Framework and undergo a third-party assessment every two years to measure the maturity of our cybersecurity program against the NIST Cybersecurity Framework.
Biggest changeWe follow the National Institute of Standards and Technology (NIST) Cybersecurity Framework and undergo a third-party assessment every two years to measure the maturity of our cybersecurity program against the NIST Cybersecurity Framework.
We also contractually require third-party service providers with access to our information technology systems, sensitive business data or personally identifiable 25 | 2023 Form 10-K information to implement and maintain appropriate security controls and contractually restrict their ability to use our data, including personally identifiable information, for purposes other than to provide services to us, except as required by law.
We also contractually require third-party 25 | 2024 Form 10-K service providers with access to our information technology systems, sensitive business data or personally identifiable information to implement and maintain appropriate security controls and contractually restrict their ability to use our data, including personally identifiable information, for purposes other than to provide services to us, except as required by law.
We maintain a global incident response plan and disaster recovery management plan, each designed to protect against, identify, evaluate, respond to and recover from an incident. These plans anticipate an array of potential scenarios and provide for the assembly of a cybersecurity incident response team in the event of a cyber incident.
We maintain a global incident response plan and disaster recovery management plan, each designed to protect against, identify, detect, respond to and recover from an incident. These plans anticipate an array of potential scenarios and provide for the assembly of a cybersecurity incident response team in the event of a cyber incident.
ITEM 1C. CYBERSECURITY We rely on complex information technology systems and various software applications to operate our business. We have developed a comprehensive cybersecurity program designed to protect our systems and the confidentiality, integrity and availability of our data. We have implemented processes that are intended to assess, identify, manage and reduce cybersecurity risks.
ITEM 1C. CYBERSECURITY We rely on complex information technology systems and various software applications to operate our business. We have developed a comprehensive cybersecurity program designed to protect our systems and the confidentiality, integrity and availability of our data. We have implemented processes that are intended to govern, manage and reduce cybersecurity risks.
We also have invested in tools and technologies to protect our and our patients', customers' and business partners' data and information technology, and we regularly monitor our information technology systems and infrastructure to identify and assess cybersecurity risks. We have designed a Threat Intelligence function that actively looks for risks that target the pharmaceutical industry generally or AbbVie specifically.
We also have invested in tools and technologies to protect our and our patients' and customers' data and information technology, and we regularly monitor our information technology systems and infrastructure to identify and assess cybersecurity risks. We have designed a Threat Intelligence function that actively looks for emerging threats and risks that target the pharmaceutical industry generally or AbbVie specifically.
As of December 31, 2023, cybersecurity risks have not materially affected our business, strategy, results of operations, or financial condition.
As of December 31, 2024, cybersecurity risks have not materially affected our business, strategy, results of operations, or financial condition.
The Audit Committee receives regular updates from the Chief Information Security Officer and other members of management on our cybersecurity program, including on information security and technology risks, program assessments, and risk management practices. Our Chief Information Security Officer also provides similar topical updates to the full board of directors at least annually. 2023 Form 10-K | 26
The Audit Committee receives regular updates from the Chief Information Security Officer and other members of management on our cybersecurity program, including on information security and technology risks, program assessments, and risk management practices.
Training programs are conducted on a periodic basis and are focused on giving employees tools to manage and defend against the most relevant and prevalent cybersecurity risks to AbbVie. We also provide specialized training for employees in specialized information technology roles. We conduct regular drills, such as tabletop exercises, to help with our overall preparedness.
Training programs are conducted on a periodic basis and are focused on giving employees information to manage and defend against the most relevant and prevalent cybersecurity risks to AbbVie. We also provide specialized training for employees in specialized information technology roles and for business functions who may be impacted by a cyber incident.
Added
We conduct regular drills, such as tabletop exercises, to help with our overall preparedness. We take measures to regularly update and improve our cybersecurity program, including conducting independent program assessments, penetration testing and scanning of our systems for vulnerabilities.
Added
Our Chief Information Security Officer and other senior information technology executives also provides similar topical updates to the full board of directors at least annually. 2024 Form 10-K | 26

Item 2. Properties

Properties — owned and leased real estate

3 edited+0 added−0 removed1 unchanged
Biggest changeAbbVie's significant manufacturing facilities are in the following locations: United States Outside the United States Abbott Park, Illinois* Campoverde di Aprilia, Italy Barceloneta, Puerto Rico Clonshaugh, Ireland Branchburg, New Jersey* La Aurora, Costa Rica Campbell, California Ludwigshafen, Germany Cincinnati, Ohio Pringy, France Dublin, California* Singapore* Irvine, California Sligo, Ireland North Chicago, Illinois Westport, Ireland* Waco, Texas Worcester, Massachusetts* Wyandotte, Michigan* _______________________________________________________________________________ * Leased property.
Biggest changeAbbVie's significant manufacturing facilities are in the following locations: United States Outside the United States Abbott Park, Illinois* Campoverde di Aprilia, Italy Barceloneta, Puerto Rico Clonshaugh, Ireland Branchburg, New Jersey* Cork, Ireland Cincinnati, Ohio La Aurora, Costa Rica Dublin, California* Ludwigshafen, Germany Irvine, California Pringy, France North Chicago, Illinois Singapore* Waco, Texas Sligo, Ireland Worcester, Massachusetts* Westport, Ireland* Wyandotte, Michigan* _______________________________________________________________________________ * Leased property.
AbbVie also has research and development facilities in the United States located at: Abbott Park, Illinois; Branchburg, New Jersey; Cambridge, Massachusetts; Irvine, California; Madison, New Jersey; North Chicago, Illinois; Pleasanton, California; South San Francisco, California; and Worcester, Massachusetts. Outside the United States, AbbVie's principal research and development facilities are located in Ludwigshafen, Germany.
AbbVie also has research and development facilities in the United States located at: Abbott Park, Illinois; Branchburg, New Jersey; Cambridge, Massachusetts; Irvine, California; Madison, New Jersey; North Chicago, Illinois; Pleasanton, California; South San Francisco, California; Waltham, Massachusetts, and Worcester, Massachusetts. Outside the United States, AbbVie's principal research and development facilities are located in Ludwigshafen, Germany.
ITEM 2. PROPERTIES AbbVie's corporate offices are located at 1 North Waukegan Road, North Chicago, Illinois 60064-6400. As of December 31, 2023, AbbVie owns or leases approximately 620 facilities worldwide, containing an aggregate of approximately 19.5 million square feet of floor space dedicated to production, distribution and administration.
ITEM 2. PROPERTIES AbbVie's corporate offices are located at 1 North Waukegan Road, North Chicago, Illinois 60064-6400. As of December 31, 2024, AbbVie owns or leases approximately 602 facilities worldwide, containing an aggregate of approximately 19.7 million square feet of floor space dedicated to production, distribution and administration.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

14 edited+1 added−4 removed11 unchanged
Biggest changeBuckbee 58 Senior Vice President, Controller Thomas J. Hudson, M.D. 62 Senior Vice President, Chief Scientific Officer, Global Research Roopal Thakkar, M.D. 52 Senior Vice President, Chief Medical Officer, Global Therapeutics _______________________________________________________________________________ Mr. Gonzalez is the Chairman and Chief Executive Officer of AbbVie, a position he has held since 2013.
Biggest changeStewart 56 Executive Vice President, Chief Commercial Officer Roopal Thakkar, M.D. 53 Executive Vice President, Research & Development and Chief Scientific Officer Kevin K. Buckbee 59 Senior Vice President, Controller _______________________________________________________________________________ Mr. Gonzalez is the Executive Chairman of the Board. Mr. Gonzalez served as Chairman and Chief Executive Officer of AbbVie from 2013 to June 2024.
Richmond joined Abbott in 2006 and was first appointed as an AbbVie corporate officer in December 2012. 2023 Form 10-K | 28 Dr. Saleki-Gerhardt is AbbVie’s Executive Vice President, Chief Operations Officer. She served as Executive Vice President, Operations from 2018 to July 2023, and as Senior Vice President, Operations from 2013 to 2018. Dr.
Richmond joined Abbott in 2006 and was first appointed as an AbbVie corporate officer in December 2012. 2024 Form 10-K | 28 Dr. Saleki-Gerhardt is AbbVie’s Executive Vice President, Chief Operations Officer. She served as Executive Vice President, Operations from 2018 to July 2023, and as Senior Vice President, Operations from 2013 to 2018. Dr.
Michael previously served as Vice Chairman and President from June 2022 to July 2023, as Vice Chairman, Finance and Commercial Operations and Chief Financial Officer from June 2021 to June 2022, as Executive Vice President, Chief Financial Officer from 2019 to 2021, as Senior Vice President, Chief Financial Officer from 2018 to 2019 and as Vice President, Controller from 2017 to 2018.
Michael previously served as President and Chief Operating Officer from July 2023 to June 2024, as Vice Chairman and President from June 2022 to July 2023, as Vice Chairman, Finance and Commercial Operations and Chief Financial Officer from June 2021 to June 2022, as Executive Vice President, Chief Financial Officer from 2019 to 2021, as Senior Vice President, Chief Financial Officer from 2018 to 2019 and as Vice President, Controller from 2017 to 2018.
He previously served as Senior Vice President of Development and Regulatory Affairs and Chief Medical Officer at AbbVie from late 2022 until early December 2023, as Vice President, Global Regulatory Affairs and R&D Quality Assurance from 2019 to 2022, and as Vice President, Global Regulatory Affairs from 2015 to 2019. Dr.
He previously served as Senior Vice President of Development and Regulatory Affairs and Chief Medical Officer at AbbVie from 2022 until 2023, as Vice President, Global Regulatory Affairs and R&D Quality Assurance from 2019 to 2022, and as Vice President, Global Regulatory Affairs from 2015 to 2019. Dr.
There are no family relationships between any of the executive officers listed above. 29 | 2023 Form 10-K PART II
There are no family relationships between any of the executive officers listed above. 29 | 2024 Form 10-K PART II
ITEM 4. MINE SAFETY DISCLOSURES Not applicable. 27 | 2023 Form 10-K INFORMATION ABOUT OUR EXECUTIVE OFFICERS Name Age Position Richard A. Gonzalez 70 Chairman of the Board and Chief Executive Officer Robert A. Michael 53 President and Chief Operating Officer Scott T. Reents 56 Executive Vice President, Chief Financial Officer Nicholas J.
ITEM 4. MINE SAFETY DISCLOSURES Not applicable. 27 | 2024 Form 10-K INFORMATION ABOUT OUR EXECUTIVE OFFICERS Name Age Position Richard A. Gonzalez 71 Executive Chairman of the Board and Retired Chief Executive Officer Robert A. Michael 54 Chief Executive Officer Scott T. Reents 57 Executive Vice President, Chief Financial Officer Nicholas J.
Donoghoe, M.D. 43 Executive Vice President, Chief Business and Strategy Officer Timothy J. Richmond 57 Executive Vice President, Chief Human Resources Officer Azita Saleki-Gerhardt, Ph.D. 60 Executive Vice President, Chief Operations Officer Perry C. Siatis 49 Executive Vice President, General Counsel and Secretary Jeffrey R. Stewart 55 Executive Vice President, Chief Commercial Officer Kevin K.
Donoghoe, M.D. 44 Executive Vice President, Chief Business and Strategy Officer Timothy J. Richmond 58 Executive Vice President, Chief Human Resources Officer Azita Saleki-Gerhardt, Ph.D. 61 Executive Vice President, Chief Operations Officer Perry C. Siatis 50 Executive Vice President, General Counsel and Secretary Jeffrey R.
He previously served as Senior Vice President, Chief Financial Officer from June 2022 to November 2022, as Vice President, Tax and Treasury from 2019 to June 2022, and as Vice President, Tax from 2013 to 2019. Mr. Reents joined Abbott in 2008 and was first appointed as an AbbVie corporate officer in June 2022. Dr.
Reents is AbbVie’s Executive Vice President, Chief Financial Officer. He previously served as Senior Vice President, Chief Financial Officer from June 2022 to November 2022, as Vice President, Tax and Treasury from 2019 to June 2022, and as Vice President, Tax from 2013 to 2019. Mr.
Stewart joined Abbott in 1992 and was first appointed as an AbbVie corporate officer in December 2018. Mr. Buckbee is AbbVie’s Senior Vice President, Controller. Mr.
Stewart joined Abbott in 1992 and was first appointed as an AbbVie corporate officer in December 2018. Dr. Thakkar serves as AbbVie's Executive Vice President, Research & Development and Chief Scientific Officer.
Michael joined Abbott in 1993 and was first appointed as an AbbVie corporate officer in March 2017. On February 14, 2024, the Board of Directors of AbbVie unanimously selected Mr. Michael to succeed Mr. Gonzalez as the Company's Chief Executive Officer. Mr.
Michael joined Abbott in 1993 and was first appointed as an AbbVie corporate officer in March 2017. On February 13, 2025, the Board of Directors of AbbVie unanimously elected Mr. Michael to succeed Mr. Gonzalez as Chairman of the Board of Directors, effective July 1, 2025, at which time Mr. Gonzalez will retire from the Board. Mr.
Buckbee previously served as AbbVie’s Vice President, Controller, Global Commercial Operations from January 2016 until March 2023, and as Vice President, Controller, US Commercial Operations from AbbVie’s separation from Abbott in 2013 until December 2015. Mr. Buckbee joined Abbott in 1991 and held several positions in the finance organization. Dr.
Thakkar joined Abbott in 2003 and was first appointed as a corporate officer in December 2023. Mr. Buckbee is AbbVie’s Senior Vice President, Controller. Mr. Buckbee previously served as AbbVie’s Vice President, Controller, Global Commercial Operations from January 2016 until March 2023, and as Vice President, Controller, U.S. Commercial Operations from AbbVie’s separation from Abbott in 2013 until December 2015.
Thakkar joined Abbott in 2003 and was first appointed as a corporate officer in December 2023. The executive officers of AbbVie are elected annually by the board of directors. All other officers are elected by the board or appointed by the Chairman of the Board.
Mr. Buckbee joined Abbott in 1991 and held several positions in the finance organization. The executive officers of AbbVie are elected annually by the board of directors. All other officers are elected by the board or appointed by the Chairman of the Board.
On February 14, 2024, the Board of Directors of AbbVie unanimously selected Mr. Michael to succeed Mr. Gonzalez as the Company's Chief Executive Officer. Mr. Gonzalez will retire from the role of Chief Executive Officer and become Executive Chairman of the Board of Directors, effective July 1, 2024. Mr. Michael is AbbVie’s President and Chief Operating Officer. Mr.
On February 13, 2025, the Board of Directors of AbbVie unanimously elected Mr. Michael to succeed Mr. Gonzalez as Chairman of the Board of Directors, effective July 1, 2025, at which time Mr. Gonzalez will retire from the Board. Mr.
Donoghoe is AbbVie’s Executive Vice President, Chief Business and Strategy Officer.
Reents joined Abbott in 2008 and was first appointed as an AbbVie corporate officer in June 2022. Dr. Donoghoe is AbbVie’s Executive Vice President, Chief Business and Strategy Officer.
Removed
Gonzalez will retire from the role of Chief Executive Officer and become Executive Chairman of the Board of Directors, effective July 1, 2024. The Board also appointed Mr. Michael as a member of the Board of Directors as a Class II director, effective July 1, 2024. Mr. Reents is AbbVie’s Executive Vice President, Chief Financial Officer.
Added
Michael is AbbVie’s Chief Executive Officer, a position he has held since July 2024, and serves on its Board of Directors. Mr.
Removed
Hudson is AbbVie's Senior Vice President, Chief Scientific Officer, Global Research. He previously served as Senior Vice President, Research & Development and Chief Scientific Officer from 2019 to 2023, and as Vice President, Head of Oncology Discovery and Early Development from 2016 to 2019. Prior to joining AbbVie, Dr.
Removed
Hudson served at the Ontario Institute for Cancer Research as President and Scientific Director. He also previously served as Founder and Director of the McGill University and Genome Quebec Innovation Centre and Assistant Director of the Whitehead/MIT Center for Genome Research. Dr. Hudson was first appointed as an AbbVie corporate officer in July 2019. Dr.
Removed
Thakkar serves as AbbVie's Senior Vice President, Chief Medical Officer, Global Therapeutics.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

6 edited+0 added−0 removed3 unchanged
Biggest changeIssuer Purchases of Equity Securities Period Total Number of Shares (or Units) Purchased Average Price Paid per Share (or Unit) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs October 1, 2023 - October 31, 2023 952 (1) $ 147.82 (1) — $ 4,808,991,028 November 1, 2023 - November 30, 2023 1,175 (1) $ 141.94 (1) — $ 4,808,991,028 December 1, 2023 - December 31, 2023 26,320 (1) $ 153.02 (1) — $ 4,808,991,028 Total 28,447 (1) $ 152.39 (1) — $ 4,808,991,028 1.
Biggest changeIssuer Purchases of Equity Securities Period Total Number of Shares (or Units) Purchased Average Price Paid per Share (or Unit) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs October 1, 2024 - October 31, 2024 978 (1) $ 194.17 (1) — $ 3,849,610,303 November 1, 2024 - November 30, 2024 844 (1) $ 202.62 (1) — $ 3,849,610,303 December 1, 2024 - December 31, 2024 2,028,292 (1) $ 173.82 (1) 2,000,000 $ 3,502,031,203 Total 2,030,114 (1) $ 173.84 (1) 2,000,000 $ 3,502,031,203 1.
This graph assumes $100 was invested in AbbVie common stock and each index on December 31, 2018 and also assumes the reinvestment of dividends. The stock price performance on the following graph is not necessarily indicative of future stock price performance.
This graph assumes $100 was invested in AbbVie common stock and each index on December 31, 2019 and also assumes the reinvestment of dividends. The stock price performance on the following graph is not necessarily indicative of future stock price performance.
These shares do not include the shares surrendered to AbbVie to satisfy minimum tax withholding obligations in connection with the vesting or exercise of stock-based awards. 31 | 2023 Form 10-K
These shares do not include the shares surrendered to AbbVie to satisfy minimum tax withholding obligations in connection with the vesting or exercise of stock-based awards. 31 | 2024 Form 10-K
This performance graph is furnished and shall not be deemed "filed" with the SEC or subject to Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any of AbbVie's filings under the Securities Act of 1933, as amended. 2023 Form 10-K | 30 Dividends On October 26, 2023, AbbVie's board of directors declared an increase in the quarterly cash dividend from $1.48 per share to $1.55 per share, payable on February 15, 2024, to stockholders of record as of January 16, 2024.
This performance graph is furnished and shall not be deemed "filed" with the SEC or subject to Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any of AbbVie's filings under the Securities Act of 1933, as amended. 2024 Form 10-K | 30 Dividends On October 30, 2024, AbbVie's board of directors declared an increase in the company’s quarterly dividend from $1.55 per share to $1.64 per share, payable on February 14, 2025, to stockholders of record as of January 15, 2025.
Stockholders There were 42,369 stockholders of record of AbbVie common stock as of January 31, 2024. Performance Graph The following graph compares the cumulative total returns of AbbVie, the S&P 500 Index and the NYSE Arca Pharmaceuticals Index for the period from December 31, 2018 through December 31, 2023.
Stockholders There were 56,544 stockholders of record of AbbVie common stock as of January 31, 2025. Performance Graph The following graph compares the cumulative total returns of AbbVie, the S&P 500 Index and the NYSE Arca Pharmaceuticals Index for the period from December 31, 2019 through December 31, 2024.
In addition to AbbVie shares repurchased on the open market under a publicly announced program, if any, these shares also included the shares purchased on the open market for the benefit of participants in the AbbVie Employee Stock Purchase Plan – 952 in October; 1,175 in November; and 26,320 in December.
In addition to AbbVie shares repurchased on the open market under a publicly announced program, if any, these shares also included the shares purchased on the open market for the benefit of participants in the AbbVie Employee Stock Purchase Plan – 978 in October; 844 in November; and 28,292 in December.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

82 edited+33 added−35 removed50 unchanged
Biggest changePercent change At actual currency rates At constant currency rates years ended (dollars in millions) 2023 2022 2021 2023 2022 2023 2022 United States $ 41,883 $ 45,713 $ 43,510 (8.4) % 5.1 % (8.4) % 5.1 % International 12,435 12,341 12,687 0.8 % (2.7) % 3.4 % 5.5 % Net revenues $ 54,318 $ 58,054 $ 56,197 (6.4) % 3.3 % (5.9) % 5.1 % 2023 Form 10-K | 38 The following table details AbbVie's worldwide net revenues: Percent change At actual currency rates At constant currency rates years ended December 31 (dollars in millions) 2023 2022 2021 2023 2022 2023 2022 Immunology Humira United States $ 12,160 $ 18,619 $ 17,330 (34.7) % 7.4 % (34.7) % 7.4 % International 2,244 2,618 3,364 (14.3) % (22.2) % (11.8) % (14.9) % Total $ 14,404 $ 21,237 $ 20,694 (32.2) % 2.6 % (31.9) % 3.8 % Skyrizi United States $ 6,753 $ 4,484 $ 2,486 50.6 % 80.4 % 50.6 % 80.4 % International 1,010 681 453 48.3 % 50.4 % 50.3 % 67.1 % Total $ 7,763 $ 5,165 $ 2,939 50.3 % 75.7 % 50.6 % 78.3 % Rinvoq United States $ 2,824 $ 1,794 $ 1,271 57.4 % 41.2 % 57.4 % 41.2 % International 1,145 728 380 57.3 % 91.4 % 60.7 % >100.0 % Total $ 3,969 $ 2,522 $ 1,651 57.4 % 52.8 % 58.4 % 58.1 % Oncology Imbruvica United States $ 2,665 $ 3,426 $ 4,321 (22.2) % (20.7) % (22.2) % (20.7) % Collaboration revenues 931 1,142 1,087 (18.5) % 5.1 % (18.5) % 5.1 % Total $ 3,596 $ 4,568 $ 5,408 (21.3) % (15.5) % (21.3) % (15.5) % Venclexta United States $ 1,087 $ 1,009 $ 934 7.8 % 8.0 % 7.8 % 8.0 % International 1,201 1,000 886 20.1 % 12.9 % 22.3 % 24.6 % Total $ 2,288 $ 2,009 $ 1,820 13.9 % 10.4 % 15.0 % 16.1 % Epkinly Collaboration Revenues $ 28 $ — $ — n/m n/m n/m n/m International 3 — — n/m n/m n/m n/m Total $ 31 $ — $ — n/m n/m n/m n/m Aesthetics Botox Cosmetic United States $ 1,670 $ 1,654 $ 1,424 1.0 % 16.2 % 1.0 % 16.2 % International 1,012 961 808 5.3 % 18.9 % 9.7 % 28.8 % Total $ 2,682 $ 2,615 $ 2,232 2.6 % 17.2 % 4.2 % 20.8 % Juvederm Collection United States $ 519 $ 548 $ 658 (5.4) % (16.7) % (5.4) % (16.7) % International 859 880 877 (2.4) % 0.3 % 1.9 % 8.9 % Total $ 1,378 $ 1,428 $ 1,535 (3.6) % (7.0) % (0.9) % (2.1) % Other Aesthetics United States $ 1,060 $ 1,122 $ 1,268 (5.6) % (11.5) % (5.6) % (11.5) % International 174 168 198 3.3 % (14.9) % 8.1 % (8.3) % Total $ 1,234 $ 1,290 $ 1,466 (4.4) % (12.0) % (3.8) % (11.1) % Neuroscience Botox Therapeutic United States $ 2,476 $ 2,255 $ 2,012 9.8 % 12.1 % 9.8 % 12.1 % International 515 464 439 11.1 % 5.6 % 15.5 % 15.3 % Total $ 2,991 $ 2,719 $ 2,451 10.0 % 10.9 % 10.8 % 12.6 % Vraylar United States $ 2,755 $ 2,037 $ 1,728 35.2 % 17.9 % 35.2 % 17.9 % International 4 1 — >100.0 % n/m >100.0 % n/m Total $ 2,759 $ 2,038 $ 1,728 35.4 % 17.9 % 35.4 % 17.9 % Duodopa United States $ 97 $ 95 $ 102 3.0 % (6.7) % 3.0 % (6.7) % International 371 363 409 2.1 % (11.3) % 1.8 % (0.8) % Total $ 468 $ 458 $ 511 2.3 % (10.4) % 2.1 % (2.0) % Ubrelvy United States $ 803 $ 680 $ 552 18.2 % 23.2 % 18.2 % 23.2 % International 12 — — >100.0 % n/m >100.0 % n/m Total $ 815 $ 680 $ 552 19.9 % 23.2 % 19.9 % 23.2 % Qulipta United States $ 405 $ 158 $ — >100.0 % >100.0 % >100.0 % >100.0 % International 3 — — >100.0 % n/m >100.0 % n/m Total $ 408 $ 158 $ — >100.0 % >100.0 % >100.0 % >100.0 % 39 | 2023 Form 10-K Percent change At actual currency rates At constant currency rates years ended December 31 (dollars in millions) 2023 2022 2021 2023 2022 2023 2022 Other Neuroscience United States $ 254 $ 456 $ 667 (44.4) % (30.5) % (44.4) % (30.5) % International 22 19 18 20.2 % 4.8 % 24.4 % 9.0 % Total $ 276 $ 475 $ 685 (41.9) % (29.6) % (41.7) % (29.5) % Eye Care Ozurdex United States $ 143 $ 139 $ 130 2.7 % 6.9 % 2.7 % 6.9 % International 329 289 288 14.0 % 0.3 % 15.9 % 12.9 % Total $ 472 $ 428 $ 418 10.3 % 2.4 % 11.6 % 11.0 % Lumigan/Ganfort United States $ 173 $ 242 $ 273 (28.4) % (11.0) % (28.4) % (11.0) % International 259 272 306 (4.8) % (11.3) % (3.6) % (3.0) % Total $ 432 $ 514 $ 579 (15.9) % (11.2) % (15.3) % (6.8) % Alphagan/Combigan United States $ 121 $ 202 $ 373 (40.1) % (45.8) % (40.1) % (45.8) % International 151 144 156 4.9 % (7.9) % 10.4 % 2.5 % Total $ 272 $ 346 $ 529 (21.4) % (34.6) % (19.1) % (31.5) % Restasis United States $ 382 $ 621 $ 1,234 (38.5) % (49.6) % (38.5) % (49.6) % International 54 45 56 19.3 % (20.2) % 25.3 % (13.8) % Total $ 436 $ 666 $ 1,290 (34.6) % (48.3) % (34.2) % (48.0) % Other Eye Care United States $ 433 $ 399 $ 393 9.0 % 0.8 % 9.0 % 0.8 % International 370 348 358 6.1 % (2.4) % 8.7 % 5.4 % Total $ 803 $ 747 $ 751 7.6 % (0.7) % 8.8 % 3.0 % Other Key Products Mavyret United States $ 659 $ 755 $ 754 (12.7) % 0.2 % (12.7) % 0.2 % International 771 786 956 (1.9) % (17.8) % 1.0 % (8.5) % Total $ 1,430 $ 1,541 $ 1,710 (7.2) % (9.9) % (5.7) % (4.7) % Creon United States $ 1,268 $ 1,278 $ 1,191 (0.8) % 7.3 % (0.8) % 7.3 % Linzess/Constella United States $ 1,073 $ 1,003 $ 1,006 7.1 % (0.4) % 7.1 % (0.4) % International 35 32 32 8.8 % 0.3 % 9.7 % 7.6 % Total $ 1,108 $ 1,035 $ 1,038 7.1 % (0.3) % 7.1 % (0.1) % All other $ 3,035 $ 4,137 $ 5,019 (26.7) % (17.6) % (25.7) % (16.3) % Total net revenues $ 54,318 $ 58,054 $ 56,197 (6.4) % 3.3 % (5.9) % 5.1 % n/m – Not meaningful The following discussion and analysis of AbbVie's net revenues by product is presented on a constant currency basis.
Biggest changePercent change At actual currency rates At constant currency rates years ended (dollars in millions) 2024 2023 2022 2024 2023 2024 2023 United States $ 43,029 $ 41,883 $ 45,713 2.7 % (8.4) % 2.7 % (8.4) % International 13,305 12,435 12,341 7.0 % 0.8 % 11.1 % 3.4 % Net revenues $ 56,334 $ 54,318 $ 58,054 3.7 % (6.4) % 4.6 % (5.9) % 2024 Form 10-K | 38 The following table details AbbVie's worldwide net revenues: Percent change At actual currency rates At constant currency rates years ended December 31 (dollars in millions) 2024 2023 2022 2024 2023 2024 2023 Immunology Humira United States $ 7,142 $ 12,160 $ 18,619 (41.3) % (34.7) % (41.3) % (34.7) % International 1,851 2,244 2,618 (17.5) % (14.3) % (13.2) % (11.8) % Total $ 8,993 $ 14,404 $ 21,237 (37.6) % (32.2) % (36.9) % (31.9) % Skyrizi United States $ 10,086 $ 6,753 $ 4,484 49.3 % 50.6 % 49.3 % 50.6 % International 1,632 1,010 681 61.6 % 48.3 % 65.4 % 50.3 % Total $ 11,718 $ 7,763 $ 5,165 50.9 % 50.3 % 51.4 % 50.6 % Rinvoq United States $ 4,259 $ 2,824 $ 1,794 50.8 % 57.4 % 50.8 % 57.4 % International 1,712 1,145 728 49.6 % 57.3 % 57.0 % 60.7 % Total $ 5,971 $ 3,969 $ 2,522 50.4 % 57.4 % 52.5 % 58.4 % Oncology Imbruvica United States $ 2,448 $ 2,665 $ 3,426 (8.1) % (22.2) % (8.1) % (22.2) % Collaboration revenues 899 931 1,142 (3.5) % (18.5) % (3.5) % (18.5) % Total $ 3,347 $ 3,596 $ 4,568 (6.9) % (21.3) % (6.9) % (21.3) % Venclexta United States $ 1,234 $ 1,087 $ 1,009 13.5 % 7.8 % 13.5 % 7.8 % International 1,349 1,201 1,000 12.3 % 20.1 % 18.0 % 22.3 % Total $ 2,583 $ 2,288 $ 2,009 12.9 % 13.9 % 15.9 % 15.0 % Elahere (a) United States $ 477 $ — $ — n/m n/m n/m n/m International 2 — — n/m n/m n/m n/m Total $ 479 $ — $ — n/m n/m n/m n/m Epkinly Collaboration revenues $ 118 $ 28 $ — >100.0 % n/m >100.0 % n/m International 28 3 — >100.0 % n/m >100.0 % n/m Total $ 146 $ 31 $ — >100.0 % n/m >100.0 % n/m Aesthetics Botox Cosmetic United States $ 1,682 $ 1,670 $ 1,654 0.7 % 1.0 % 0.7 % 1.0 % International 1,038 1,012 961 2.7 % 5.3 % 6.7 % 9.7 % Total $ 2,720 $ 2,682 $ 2,615 1.4 % 2.6 % 2.9 % 4.2 % Juvederm Collection United States $ 469 $ 519 $ 548 (9.6) % (5.4) % (9.6) % (5.4) % International 708 859 880 (17.6) % (2.4) % (13.4) % 1.9 % Total $ 1,177 $ 1,378 $ 1,428 (14.6) % (3.6) % (12.0) % (0.9) % Other Aesthetics United States $ 1,118 $ 1,060 $ 1,122 5.5 % (5.6) % 5.5 % (5.6) % International 161 174 168 (7.1) % 3.3 % (1.0) % 8.1 % Total $ 1,279 $ 1,234 $ 1,290 3.7 % (4.4) % 4.6 % (3.8) % Neuroscience Botox Therapeutic United States $ 2,718 $ 2,476 $ 2,255 9.8 % 9.8 % 9.8 % 9.8 % International 565 515 464 9.8 % 11.1 % 14.0 % 15.5 % Total $ 3,283 $ 2,991 $ 2,719 9.8 % 10.0 % 10.5 % 10.8 % Vraylar United States $ 3,260 $ 2,755 $ 2,037 18.4 % 35.2 % 18.4 % 35.2 % International 7 4 1 57.8 % >100.0 % 58.6 % >100.0 % Total $ 3,267 $ 2,759 $ 2,038 18.4 % 35.4 % 18.4 % 35.4 % Duodopa United States $ 96 $ 97 $ 95 (1.8) % 3.0 % (1.8) % 3.0 % International 351 371 363 (5.3) % 2.1 % (5.4) % 1.8 % Total $ 447 $ 468 $ 458 (4.6) % 2.3 % (4.7) % 2.1 % Ubrelvy United States $ 981 $ 803 $ 680 22.1 % 18.2 % 22.1 % 18.2 % International 25 12 — >100.0 % >100.0 % >100.0 % >100.0 % Total $ 1,006 $ 815 $ 680 23.4 % 19.9 % 23.4 % 19.9 % Qulipta United States $ 628 $ 405 $ 158 55.3 % >100.0 % 55.3 % >100.0 % International 30 3 — >100.0 % >100.0 % >100.0 % >100.0 % Total $ 658 $ 408 $ 158 61.3 % >100.0 % 61.3 % >100.0 % 39 | 2024 Form 10-K Percent change At actual currency rates At constant currency rates years ended December 31 (dollars in millions) 2024 2023 2022 2024 2023 2024 2023 Other Neuroscience United States $ 224 $ 254 $ 456 (11.6) % (44.4) % (11.6) % (44.4) % International 114 22 19 >100.0 % 20.2 % >100.0 % 24.4 % Total $ 338 $ 276 $ 475 22.4 % (41.9) % 22.7 % (41.7) % Eye Care Ozurdex United States $ 138 $ 143 $ 139 (4.1) % 2.7 % (4.1) % 2.7 % International 356 329 289 8.3 % 14.0 % 10.7 % 15.9 % Total $ 494 $ 472 $ 428 4.5 % 10.3 % 6.2 % 11.6 % Lumigan/Ganfort United States $ 187 $ 173 $ 242 7.5 % (28.4) % 7.5 % (28.4) % International 242 259 272 (6.4) % (4.8) % (3.9) % (3.6) % Total $ 429 $ 432 $ 514 (0.9) % (15.9) % 0.6 % (15.3) % Alphagan/Combigan United States $ 95 $ 121 $ 202 (21.8) % (40.1) % (21.8) % (40.1) % International 153 151 144 1.5 % 4.9 % 7.6 % 10.4 % Total $ 248 $ 272 $ 346 (8.8) % (21.4) % (5.4) % (19.1) % Restasis United States $ 172 $ 382 $ 621 (55.2) % (38.5) % (55.2) % (38.5) % International 52 54 45 (3.0) % 19.3 % 2.1 % 25.3 % Total $ 224 $ 436 $ 666 (48.7) % (34.6) % (48.1) % (34.2) % Other Eye Care United States $ 472 $ 433 $ 399 8.9 % 9.0 % 8.9 % 9.0 % International 375 370 348 1.5 % 6.1 % 6.1 % 8.7 % Total $ 847 $ 803 $ 747 5.5 % 7.6 % 7.6 % 8.8 % Other Key Products Mavyret United States $ 595 $ 659 $ 755 (9.7) % (12.7) % (9.7) % (12.7) % International 716 771 786 (7.2) % (1.9) % (4.5) % 1.0 % Total $ 1,311 $ 1,430 $ 1,541 (8.3) % (7.2) % (6.9) % (5.7) % Creon United States $ 1,383 $ 1,268 $ 1,278 9.1 % (0.8) % 9.1 % (0.8) % Linzess/Constella United States $ 916 $ 1,073 $ 1,003 (14.6) % 7.1 % (14.6) % 7.1 % International 38 35 32 7.5 % 8.8 % 7.2 % 9.7 % Total $ 954 $ 1,108 $ 1,035 (13.9) % 7.1 % (13.9) % 7.1 % All other $ 3,032 $ 3,035 $ 4,137 — % (26.7) % 1.4 % (25.7) % Total net revenues $ 56,334 $ 54,318 $ 58,054 3.7 % (6.4) % 4.6 % (5.9) % n/m – Not meaningful (a) Net revenues include ImmunoGen product revenues after the acquisition closing date of February 12, 2024.
These products are described in greater detail in the section labeled "Research and Development" included as part of this Item 7. 2023 Financial Results AbbVie's strategy has focused on delivering strong financial results, maximizing the benefits of a diversified revenue base, advancing and investing in its pipeline and returning value to shareholders while ensuring a strong, sustainable growth business over the long term.
These products are described in greater detail in the section labeled "Research and Development" included as part of this Item 7. 2024 Financial Results AbbVie's strategy has focused on delivering strong financial results, maximizing the benefits of a diversified revenue base, advancing and investing in its pipeline and returning value to shareholders while ensuring a strong, sustainable growth business over the long term.
Discussions of 2021 items and year-to-year comparisons between 2022 and 2021 that are not included in this Form 10-K can be found in “Management's Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022.
Discussions of 2022 items and year-to-year comparisons between 2023 and 2022 that are not included in this Form 10-K can be found in “Management's Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
Significant judgment is employed in determining the appropriateness of certain of these inputs, which are disclosed in Note 11 to the Consolidated Financial Statements. Changes to the inputs described above could have a material impact on the company's financial position and results of operations in any given period. 2023 Form 10-K | 48
Significant judgment is employed in determining the appropriateness of certain of these inputs, which are disclosed in Note 11 to the Consolidated Financial Statements. Changes to the inputs described above could have a material impact on the company's financial position and results of operations in any given period. 2024 Form 10-K | 48
The current health care cost trend rate is supported by the historical trend experience of each plan. Assumed health care cost trend rates have a significant effect on the amounts reported for health care plans as of December 31, 2023 and will be used in the calculation of net periodic benefit cost in 2024.
The current health care cost trend rate is supported by the historical trend experience of each plan. Assumed health care cost trend rates have a significant effect on the amounts reported for health care plans as of December 31, 2024 and will be used in the calculation of net periodic benefit cost in 2025.
Interest payments on debt are calculated for future periods using forecasted interest rates in effect at the end of 2023. Projected interest payments include the related effects of interest rate swap agreements. Certain of these projected interest payments may differ in the future based on changes in floating interest rates or other factors or events.
Interest payments on debt are calculated for future periods using forecasted interest rates in effect at the end of 2024. Projected interest payments include the related effects of interest rate swap agreements. Certain of these projected interest payments may differ in the future based on changes in floating interest rates or other factors or events.
AbbVie's assumed expected long-term rate of return has a significant effect on the amounts reported for defined benefit pension plans as of December 31, 2023 and will be used in the calculation of net periodic benefit cost in 2024.
AbbVie's assumed expected long-term rate of return has a significant effect on the amounts reported for defined benefit pension plans as of December 31, 2024 and will be used in the calculation of net periodic benefit cost in 2025.
This commentary should be read in conjunction with the Consolidated Financial Statements and accompanying notes appearing in Item 8, "Financial Statements and Supplementary Data." This section of Form 10-K generally discusses 2023 and 2022 items and year-to-year comparisons between 2023 and 2022.
This commentary should be read in conjunction with the Consolidated Financial Statements and accompanying notes appearing in Item 8, "Financial Statements and Supplementary Data." This section of Form 10-K generally discusses 2024 and 2023 items and year-to-year comparisons between 2024 and 2023.
Revenue Recognition AbbVie recognizes revenue when control of promised goods or services is transferred to the company’s customers, in an amount that reflects the consideration AbbVie expects to be entitled to in exchange for those goods or services. Sales, value add and other taxes collected concurrent with revenue-producing activities are excluded from revenue.
Revenue Recognition AbbVie recognizes revenue when control of promised goods or services is transferred to the company’s customers, in an amount that reflects the consideration AbbVie expects to be entitled to in exchange for those goods or services. Sales, value add and other taxes collected concurrent with revenue-producing activities are excluded from revenue. AbbVie generates revenue primarily from product sales.
The following sections summarize transitions of significant programs from mid-stage development to late-stage development as well as developments in significant late-stage and registration programs. AbbVie expects multiple mid-stage programs to transition into late-stage programs in the next 12 months.
The following sections summarize transitions of significant programs from mid-stage development to late-stage development as well as developments in significant late-stage and registrational programs. AbbVie expects multiple mid-stage programs to transition into late-stage programs in the next 12 months.
In 2022, Puerto Rico enacted Act 52-2002 (the “Puerto Rico Act”) allowing for a transition from a Puerto Rico excise tax levied on gross inventory purchases to an income-based tax beginning in 2023.
In 2022, Puerto Rico enacted Act 52-2002 (the Puerto Rico Act) allowing for a transition from a Puerto Rico excise tax levied on gross inventory purchases to an income-based tax beginning in 2023.
In 2023, the change in fair value reflected higher estimated Skyrizi sales driven by stronger market share uptake, the passage of time and lower discount rates. In 2022, the change in fair value reflected higher estimated Skyrizi sales driven by stronger market share uptake and the passage of time, partially offset by higher discount rates.
In 2024, the change in fair value reflected higher estimated Skyrizi sales and the passage of time, partially offset by higher discount rates. In 2023, the change in fair value reflected higher estimated Skyrizi sales driven by stronger market share uptake, the passage of time and lower discount rates.
AbbVie's assumed discount rates have a significant effect on the amounts reported for defined benefit pension and other post-employment plans as of December 31, 2023.
AbbVie's assumed discount rates have a significant effect on the amounts reported for defined benefit pension and other post-employment plans as of December 31, 2024.
AbbVie's pipeline currently includes approximately 90 compounds, devices or indications in development individually or under collaboration or license agreements and is focused on such important specialties as immunology, oncology, aesthetics, neuroscience and eye care. Of these programs, approximately 50 are in mid- and late-stage development.
AbbVie's pipeline currently includes approximately 90 compounds, devices or indications in development individually or under collaboration or license agreements and is focused on important specialties including immunology, oncology, aesthetics, neuroscience and eye care. Of these programs, approximately 50 are in mid- and late-stage development.
A one percentage point change in assumed expected long-term rate of return on plan assets would increase or decrease the net period benefit cost of these plans in 2024 by $106 million. The health care cost trend rate is selected by reviewing historical trends and current views on projected future health care cost increases.
A one percentage point change in assumed expected long-term rate of return on plan assets would increase or decrease the net period benefit cost of these plans in 2025 by $109 million. The health care cost trend rate is selected by reviewing historical trends and current views on projected future health care cost increases.
The significant assumptions, which are reviewed annually, include the discount rate, the expected long-term rate of return on plan assets and the health care cost trend rates and are disclosed in Note 12 to the Consolidated Financial Statements. 2023 Form 10-K | 46 The discount rate is selected based on current market rates on high-quality, fixed-income investments at December 31 each year.
The significant assumptions, which are reviewed annually, include the discount rate, the expected long-term rate of return on plan assets and the health care cost trend rates and are disclosed in Note 12 to the Consolidated Financial Statements. The discount rate is selected based on current market rates on high-quality, fixed-income investments at December 31 each year.
These projects include a global minimum tax rate of 15%, referred to as "Pillar Two", and the creation of a new global system to tax income based on the location to which products are sold, referred to as "Pillar One." Numerous countries have agreed to a statement in support of the OECD model rules and European Union member states have agreed to 2023 Form 10-K | 42 implement Pillar Two.
These projects include a global minimum tax rate of 15%, referred to as "Pillar Two", and the creation of a new global system to tax income based on the location to which products are sold, referred to as "Pillar One." Numerous countries have agreed to a statement in support of the OECD model rules and European Union member states have agreed to implement Pillar Two.
In-process research and development (IPR&D) acquired in a business combination is capitalized as an indefinite-lived intangible asset until regulatory approval is obtained, at which time it is accounted for as a definite-lived asset and amortized over its estimated useful life, or discontinuation, at which point the intangible asset will be written off.
In-process research and development (IPR&D) acquired in a business combination is capitalized as an 47 | 2024 Form 10-K indefinite-lived intangible asset until regulatory approval is obtained, at which time it is accounted for as a definite-lived asset and amortized over its estimated useful life, or discontinuation, at which point the intangible asset will be written off.
Historically, adjustments to rebate accruals have not been material to net earnings. The following table is an analysis of the three largest accruals for rebates and chargebacks, which comprise approximately 94% of the total consolidated rebate and chargebacks recorded as reductions to revenues in 2023.
Historically, adjustments to rebate accruals have not been material to net earnings. The following table is an analysis of the three largest accruals for rebates and chargebacks, which comprise approximately 92% of the total consolidated rebate and chargebacks recorded as reductions to revenues in 2024.
The effective income tax rates differed from the statutory tax rate principally due to the impact of foreign operations with lower income tax rates in locations outside the United States, the U.S. global minimum tax, changes in fair value of contingent consideration, tax credits and incentives in the United States, Puerto Rico and other foreign tax jurisdictions, and business development activities.
The effective income tax rates in 2024, 2023 and 2022 differed from the statutory tax rate principally due to the impact of foreign operations with lower income tax rates in locations outside the United States, the U.S. global minimum tax, changes in fair value of contingent consideration, tax audits and settlements, tax credits and incentives in the United States, Puerto Rico and other foreign tax jurisdictions, and business development activities.
See Part I, Item 1 “Business – Regulation – Commercialization, Distribution and Manufacturing,” Part I, Item 1A “Risk Factors” and Note 7 to the consolidated financial statements for additional information. Research and Development Research and innovation are the cornerstones of AbbVie's business as a global biopharmaceutical company.
See Part I, Item 1 “Business – Regulation – Commercialization, Distribution and Manufacturing,” Part I, Item 1A “Risk Factors” and Note 7 to the consolidated financial statements for additional information. 2024 Form 10-K | 34 Research and Development Research and innovation are the cornerstones of AbbVie's business as a global biopharmaceutical company.
The company completed the transition requirements of the Puerto Rico Act in 2022, resulting in the remeasurement of certain deferred tax assets and liabilities based on income tax rates at which they are expected to reverse in the future.
The company completed the transition 2024 Form 10-K | 42 requirements of the Puerto Rico Act in 2022, resulting in the remeasurement of certain deferred tax assets and liabilities based on income tax rates at which they are expected to reverse in the future.
The projected interest payments only pertain to obligations and agreements outstanding at December 31, 2023. See Note 10 to the Consolidated Financial Statements for additional information regarding the company's debt instruments and Note 11 for additional information on the interest rate swap agreements outstanding at December 31, 2023.
The projected interest payments only pertain to 2024 Form 10-K | 44 obligations and agreements outstanding at December 31, 2024. See Note 10 to the Consolidated Financial Statements for additional information regarding the company's debt instruments and Note 11 for additional information on the interest rate swap agreements outstanding at December 31, 2024.
AbbVie repurchased 10 million shares for $1.6 billion in 2023 and 8 million shares for $1.1 billion in 2022. AbbVie's remaining stock repurchase authorization was $4.8 billion as of December 31, 2023. On February 16, 2023, AbbVie's board of directors authorized a $5.0 billion increase to the existing stock repurchase authorization.
AbbVie repurchased 7 million shares for $1.3 billion in 2024 and 10 million shares for $1.6 billion in 2023. AbbVie's remaining stock repurchase authorization was $3.5 billion as of December 31, 2024. On February 16, 2023, AbbVie's board of directors authorized a $5.0 billion increase to the existing stock repurchase authorization.
Research and Development Percent change years ended December 31 (dollars in millions) 2023 2022 2021 2023 2022 Research and development $ 7,675 $ 6,510 $ 6,922 18 % (6) % as a percent of net revenues 14 % 11 % 12 % Research and development (R&D) expenses as a percentage of net revenues increased in 2023 compared to 2022.
Research and Development Percent change years ended December 31 (dollars in millions) 2024 2023 2022 2024 2023 Research and development $ 12,791 $ 7,675 $ 6,510 67 % 18 % as a percent of net revenues 23 % 14 % 11 % Research and development (R&D) expenses as a percentage of net revenues increased in 2024 compared to 2023.
At December 31, 2023, the company was in compliance with all covenants, and commitment fees under the credit facility were insignificant. No amounts were outstanding under the company's credit facility as of December 31, 2023, December 31, 2022, or December 31, 2021.
At December 31, 2024, the company was in compliance with all covenants, and commitment fees under the credit facility were insignificant. No amounts were outstanding under the company's credit facilities as of December 31, 2024 and December 31, 2023.
Reserves for cash discounts and sales incentives are readily determinable because the company's experience of payment history is fairly consistent. Product returns can be reliably estimated based on the company's historical return experience. Cash discounts totaled $2.0 billion in 2023, $1.8 billion in 2022 and $1.6 billion in 2021. Allowances other than cash discounts are not significant.
Reserves for cash discounts and sales incentives are readily determinable because the company's experience of payment history is fairly consistent. Product returns can be reliably estimated based on the company's historical return experience. Cash discounts totaled $2.0 billion in 2024, $2.0 billion in 2023 and $1.8 billion in 2022.
Net revenues for Rinvoq increased 58% in 2023 primarily driven by continued strong market share uptake as well as market growth across all indications, partially offset by unfavorable pricing. Net revenues for Imbruvica represent product revenues in the United States and collaboration revenues outside of the United States related to AbbVie's 50% share of Imbruvica profit.
Net revenues for Rinvoq increased 53% in 2024 primarily driven by continued strong market share uptake as well as market growth across all indications. Net revenues for Imbruvica represent product revenues in the United States and collaboration revenues outside of the United States related to AbbVie's 50% share of Imbruvica profit.
AbbVie reflects the plans' specific cash flows and applies them to the corresponding individual spot rates along the yield curve in calculating the service cost and interest cost portions of expense. For other countries, AbbVie reviews various indices such as corporate bond and government bond benchmarks to estimate the discount rate.
AbbVie reflects 2024 Form 10-K | 46 the plans' specific cash flows and applies them to the corresponding individual spot rates along the yield curve in calculating the service cost and interest cost portions of expense. For certain plans, AbbVie reviews various indices such as corporate bond and government bond benchmarks to estimate the discount rate.
Lutikizumab • In January 2024, AbbVie announced Phase 2 results showing adults with moderate to severe hidradenitis suppurativa (HS) who had previously failed anti-TNF therapy who received lutikizumab achieved higher response rates than placebo in the primary endpoint of achieving HS Clinical Response at week 16.
Lutikizumab • In January 2024, AbbVie announced Phase 2 results showing adults with moderate to severe hidradenitis suppurativa (HS) who had previously failed anti-TNF therapy who received lutikizumab achieved higher response rates than placebo in the primary endpoint of achieving HS Clinical Response at week 16. • In July 2024, AbbVie initiated a Phase 3 clinical trial to evaluate lutikizumab in adult and adolescent patients with moderate to severe HS.
See Note 5 to the Consolidated Financial Statements for additional information. Other Operating Expense (Income), Net Other operating expense (income), net included a gain of $169 million in 2023 and a charge of $229 million in 2022 related to a development liability associated with an asset divested as part of Allergan acquisition.
(Aliada) and $250 million to acquire Celsius Therapeutics. See Note 5 to the Consolidated Financial Statements for additional information. Other Operating Expense (Income), Net Other operating expense (income), net included a gain of $169 million in 2023 related to a development liability associated with an asset divested as part of the acquisition of Allergan, Inc. (Allergan) in 2020.
A 50 basis point change in the assumed discount rate would have had the following effects on AbbVie's calculation of net periodic benefit costs in 2024 and projected benefit obligations as of December 31, 2023: 50 basis point (in millions) (brackets denote a reduction) Increase Decrease Defined benefit plans Net periodic benefit cost $ (49) $ 70 Projected benefit obligation (674) 756 Other post-employment plans Net periodic benefit cost $ (6) $ 7 Projected benefit obligation (53) 59 The expected long-term rate of return is based on the asset allocation, historical performance and the current view of expected future returns.
A 50 basis point change in the assumed discount rate would have had the following effects on AbbVie's calculation of net periodic benefit costs in 2025 and projected benefit obligations as of December 31, 2024: 50 basis point (in millions) (brackets denote a reduction) Increase Decrease Defined benefit plans Net periodic benefit cost $ (25) $ 39 Projected benefit obligation (596) 664 Other post-employment plans Net periodic benefit cost $ (5) $ 6 Projected benefit obligation (46) 51 The expected long-term rate of return is based on the asset allocation, historical performance and the current view of expected future returns.
(in millions) Medicaid and Medicare Rebates Managed Care Rebates Wholesaler Chargebacks Balance as of December 31, 2020 $ 2,945 $ 2,907 $ 741 Provisions 9,622 11,306 11,286 Payments (8,751) (11,116) (11,125) Balance as of December 31, 2021 3,816 3,097 902 Provisions 11,713 14,119 13,070 Payments (10,331) (12,974) (12,829) Balance as of December 31, 2022 5,198 4,242 1,143 Provisions 15,153 23,978 14,191 Payments (15,054) (21,200) (14,162) Balance as of December 31, 2023 $ 5,297 $ 7,020 $ 1,172 Other Allowances Other allowances include cash discounts, product returns, sales incentives and other adjustments, which are accounted for as variable consideration and are recorded as a reduction to revenue in the same period the related product is sold.
(in millions) Medicaid and Medicare Rebates Managed Care Rebates Wholesaler Chargebacks Balance as of December 31, 2021 $ 3,816 $ 3,097 $ 902 Provisions 11,713 14,119 13,070 Payments (10,331) (12,974) (12,829) Balance as of December 31, 2022 5,198 4,242 1,143 Provisions 15,153 23,978 14,191 Payments (15,054) (21,200) (14,162) Balance as of December 31, 2023 5,297 7,020 1,172 Provisions 15,866 24,127 14,782 Payments (13,756) (25,622) (14,797) Balance as of December 31, 2024 $ 7,407 $ 5,525 $ 1,157 Other Allowances Other allowances include cash discounts, product returns, sales incentives and other adjustments, which are accounted for as variable consideration and are recorded as a reduction to revenue in the same period the related product is sold.
Diluted earnings per share in 2023 was $2.72 and included the following after-tax costs: (i) $6.7 billion related to the amortization of intangible assets; (ii) $5.0 billion for the change in fair value of contingent consideration liabilities; (iii) $3.5 billion related to intangible asset impairment; and (iv) $122 million of acquisition and integration expenses.
Diluted earnings per share in 2024 was $2.39 and included the following after-tax costs: (i) $6.5 billion related to the amortization of intangible assets; (ii) $3.7 billion for the change in fair value of contingent consideration liabilities; (iii) $3.5 billion related to intangible asset impairment; (iv) $978 million of acquisition and integration expenses; and (v) $721 million for charges related to litigation matters.
AbbVie's global Imbruvica revenues decreased 21% in 2023 primarily driven by decreased demand and lower market share in the United States as well as decreased collaboration revenues. Net revenues for Venclexta increased 15% in 2023. In the United States, Venclexta net revenues increased 8% driven by continued market growth across all indications, market share uptake as well as favorable pricing.
AbbVie's global Imbruvica revenues decreased 7% in 2024 primarily driven by decreased demand and lower market share in the United States as well as decreased collaboration revenues. Net revenues for Venclexta increased 16% in 2024 primarily driven by continued market share uptake and market growth across all indications.
AbbVie may issue additional commercial paper or retire commercial paper to meet liquidity requirements as needed. Credit Risk AbbVie monitors economic conditions, the creditworthiness of customers and government regulations and funding, both domestically and abroad.
There were no commercial paper borrowings outstanding as of December 31, 2024 and December 31, 2023. AbbVie may issue additional commercial paper or retire commercial paper to meet liquidity requirements as needed. Credit Risk AbbVie monitors economic conditions, the creditworthiness of customers and government regulations and funding, both domestically and abroad.
Quarterly Cash Dividend On October 26, 2023, AbbVie announced that its board of directors declared an increase in the quarterly cash dividend from $1.48 per share to $1.55 per share beginning with the dividend payable on February 15, 2024, to stockholders of record as of January 16, 2024. This reflects an increase of approximately 4.7% over the previous quarterly rate.
Quarterly Cash Dividend On October 30, 2024, AbbVie announced that its board of directors declared an increase in the company’s quarterly dividend from $1.55 per share to $1.64 per share beginning with the dividend payable on February 14, 2025 to stockholders of record as of January 15, 2025. This reflects an increase of approximately 5.8% over the previous quarterly rate.
Certain products are co-marketed or co-promoted with other companies. AbbVie operates as a single global business segment and has approximately 50,000 employees. 2024 Strategic Objectives AbbVie's mission is to discover and develop innovative medicines and products that solve serious health issues today and address the medical challenges of tomorrow while achieving top-tier financial performance through outstanding execution.
AbbVie operates as a single global business segment and has approximately 55,000 employees. 33 | 2024 Form 10-K 2025 Strategic Objectives AbbVie's mission is to discover and develop innovative medicines and products that solve serious health issues today and address the medical challenges of tomorrow while achieving top-tier financial performance through outstanding execution.
Gross Margin Percent change years ended December 31 (dollars in millions) 2023 2022 2021 2023 2022 Gross margin $ 33,903 $ 40,640 $ 38,751 (17) % 5 % as a percent of net revenues 62 % 70 % 69 % Gross margin as a percentage of net revenues in 2023 decreased compared to 2022.
Gross Margin Percent change years ended December 31 (dollars in millions) 2024 2023 2022 2024 2023 Gross margin $ 39,430 $ 33,903 $ 40,640 16 % (17) % as a percent of net revenues 70 % 62 % 70 % Gross margin as a percentage of net revenues in 2024 increased compared to 2023.
No commercial paper borrowings were issued during 2023 or 2022 and there were no commercial paper borrowings outstanding as of December 31, 2023 or December 31, 2022. Subsequent to 2023, AbbVie issued commercial paper borrowings of which $1.7 billion were outstanding as of the date of filing this Annual Report on Form 10-K.
During 2024, the company issued and redeemed $7.7 billion of commercial paper. Subsequent to December 31, 2024, AbbVie issued commercial paper borrowings of which $3.3 billion were outstanding as of date of filing of this Annual Report 43 | 2024 Form 10-K on Form 10-K.
Unfavorable changes to the ratings may have an adverse impact on future financing arrangements; however, they would not affect the company’s ability to draw on its credit facility and would not result in an acceleration of scheduled maturities of any of the company’s outstanding debt.
However, they would not affect the company’s ability to draw on its credit facility and would not result in an acceleration of scheduled maturities of any of the company’s outstanding debt.
(b) Includes contingent consideration liabilities which are recorded at fair value on the consolidated balance sheet. Potential contingent consideration payments that exceed the fair value recorded on the consolidated balance sheet are not included in the table of contractual obligations.
(b) Includes contingent consideration liabilities which are recorded at fair value on the consolidated balance sheet. Potential contingent consideration payments that exceed the fair value recorded on the consolidated balance sheet are not included in the table of contractual obligations. See Note 11 to the Consolidated Financial Statements for additional information regarding these liabilities.
During the quarter ended December 31, 2023 the company also repaid €500 million aggregate principal amount of 1.50% senior euro notes and $1.3 billion aggregate principal amount of 3.75% senior notes at maturity.
During the quarter ended December 31, 2023 the company also repaid €500 million aggregate principal amount of 1.50% senior euro notes and $1.3 billion aggregate principal amount of 3.75% senior notes at maturity. Financing cash flows also included cash dividend payments of $11.0 billion in 2024 and $10.5 billion in 2023.
FINANCIAL POSITION, LIQUIDITY AND CAPITAL RESOURCES years ended December 31 (in millions) 2023 2022 2021 Cash flows provided by (used in) Operating activities $ 22,839 $ 24,943 $ 22,777 Investing activities (2,009) (623) (2,344) Financing activities (17,222) (24,803) (19,039) Operating cash flows in 2023 decreased from 2022 primarily due to decreased results of operations driven by lower net revenues and higher income tax payments, partially offset by the timing of working capital.
FINANCIAL POSITION, LIQUIDITY AND CAPITAL RESOURCES years ended December 31 (in millions) 2024 2023 2022 Cash flows provided by (used in) Operating activities $ 18,806 $ 22,839 $ 24,943 Investing activities (20,820) (2,009) (623) Financing activities (5,211) (17,222) (24,803) Operating cash flows in 2024 decreased compared to the prior year primarily due to the timing of working capital and higher contingent consideration payments classified as operating cash flows, partially offset by increased results from operations driven by higher net revenues.
At the current time, the company believes it has sufficient financial flexibility to issue debt, enter into other financing arrangements and attract long-term capital on acceptable terms to support the company's growth objectives.
At the current time, the company believes it has sufficient financial flexibility to issue debt, enter into other financing arrangements and attract long-term capital on acceptable terms to support the company's growth objectives. Credit Ratings In August 2024, Moody’s Investors Service (Moody’s) affirmed its A3 senior unsecured long-term rating.
These costs were partially offset by an after-tax gain of $381 million related to a favorable settlement of a litigation matter. Additionally, financial results reflected continued funding to support all stages of AbbVie’s pipeline assets and continued investment in AbbVie’s on-market brands.
These costs were partially offset by an income tax benefit of $1.8 billion primarily related to the settlement of income tax examinations. Additionally, financial results reflected continued funding to support all stages of AbbVie’s pipeline assets and continued investment in AbbVie’s on-market brands.
In 2023, Imbruvica was selected as one of the first 10 medicines subject to government-set prices beginning in 2026. The price-setting process will conclude in 2024 and the Centers for Medicare & Medicaid Services will publish prices that will be applicable to the 10 selected drugs beginning in 2026.
In 2023, Imbruvica was selected as one of the first 10 medicines subject to government-set prices beginning in 2026. In 2024, the CMS published Medicare Part D prices that will be applicable to the 10 selected drugs, including Imbruvica, beginning in 2026.
Interest income in 2023 increased compared to 2022 primarily due to the impact of higher interest rates. Other expense, net included charges related to changes in fair value of contingent consideration liabilities of $5.1 billion in 2023 and $2.8 billion in 2022.
Other expense, net included charges related to changes in fair value of contingent consideration liabilities of $3.8 billion in 2024 and $5.1 billion in 2023.
This implementation includes aspects of legislation that are effective starting in 2024. More widespread implementation of Pillar Two is expected to continue, and incremental aspects of the legislation may start in 2025. Significant details around the provision are still emerging. These changes increase tax uncertainty and may adversely impact income tax expense in future years.
This implementation includes aspects of legislation that were effective starting in 2024. Significant details around the provision are still emerging. These potential changes increase tax uncertainty and may adversely impact income tax expense in future years. We will continue to monitor pending legislation and implementation by individual countries and evaluate the potential impact on our business in future periods.
Provisions for rebates and chargebacks totaled $56.8 billion in 2023, $41.4 billion in 2022 and $33.9 billion in 2021. Rebate amounts are typically based upon the volume of purchases using contractual or statutory prices, which may vary by product and by payer.
Rebate amounts are typically based upon the volume of purchases using contractual or statutory prices, which may vary by product and by payer.
AbbVie may also utilize factoring arrangements to mitigate credit risk, although the receivables included in such arrangements have historically not been a significant amount of total outstanding receivables. 43 | 2023 Form 10-K Credit Facility, Access to Capital and Credit Ratings Credit Facility In March 2023, AbbVie entered into an amended and restated five-year revolving credit facility.
AbbVie may also utilize factoring arrangements to mitigate credit risk, although the receivables included in such arrangements have historically not been a significant amount of total outstanding receivables.
It is possible that more of our products, including products that generate substantial revenues, could be selected in future years, which could, among other things, accelerate revenue erosion prior to expiration of intellectual property protections. The effect of reducing prices and reimbursement for certain of our products would significantly impact our results of operations.
In January 2025, HHS, through the CMS, selected Vraylar and Linzess as two of the 15 medicines subject to government-set prices beginning in 2027. It is possible that more of our products, including products that generate substantial revenues, could be selected in future years, which could, among other things, accelerate revenue erosion prior to expiration of intellectual property protections.
Transactions involving the purchase or sale of intangible assets occur between companies in 47 | 2023 Form 10-K the pharmaceuticals industry and valuations are usually based on a discounted cash flow analysis incorporating the stage of completion.
Valuation of Goodwill and Intangible Assets AbbVie has acquired and may continue to acquire significant intangible assets in connection with business combinations that AbbVie records at fair value. Transactions involving the purchase or sale of intangible assets occur between companies in the pharmaceuticals industry and valuations are usually based on a discounted cash flow analysis incorporating the stage of completion.
The company's financial performance in 2023 included delivering worldwide net revenues of $54.3 billion, operating earnings of $12.8 billion, diluted earnings per share of $2.72 and cash flows from operations of $22.8 billion.
The company's financial performance in 2024 included delivering worldwide net revenues of $56.3 billion, operating earnings of $9.1 billion, diluted earnings per share of $2.39 and cash flows from operations of $18.8 billion. Worldwide net revenues increased by 4% on a reported and 5% on a constant currency basis.
In connection with the acquisition of ImmunoGen and proposed acquisition of Cerevel Therapeutics, AbbVie entered into a $9.0 billion 364-day bridge credit agreement and a 364-day term loan credit agreement with an aggregate principal amount of $5.0 billion. No amounts were drawn under the bridge credit agreement or term loan credit agreement as of December 31, 2023 .
Credit Facility, Access to Capital and Credit Ratings Credit Facility In December 2023, in connection with the acquisitions of ImmunoGen and Cerevel Therapeutics, AbbVie entered into a $9.0 billion 364-day bridge credit agreement and $5.0 billion 364-day term loan credit agreement. In February 2024, AbbVie borrowed and repaid $5.0 billion under the term loan credit agreement.
Net revenues for Botox Therapeutic increased 11% in 2023 driven by market growth and market share uptake, partially offset by unfavorable pricing. Net revenues for Vraylar increased 35% in 2023 primarily driven by continued market share uptake as well as market growth.
Net revenues for Vraylar increased 18% in 2024 primarily driven by continued market share uptake as well as market growth. Net revenues for Ubrelvy increased 23% in 2024 primarily driven by continued market share uptake as well as market growth.
AbbVie continues to pursue strategies to maintain broad formulary access of Humira and manage the impact of biosimilar erosion. Net revenues for Skyrizi increased 51% in 2023 primarily driven by continued strong market share uptake as well as market growth across all indications, partially offset by unfavorable pricing.
Internationally, Humira revenues decreased 13% in 2024 primarily driven by the continued impact of direct biosimilar competition. Net revenues for Skyrizi increased 51% in 2024 primarily driven by continued strong market share uptake as well as market growth across all indications.
Global Humira sales decreased 32% in 2023. In the United States, Humira sales decreased 35% in 2023 primarily driven by direct biosimilar competition following loss of exclusivity on January 31, 2023. Internationally, Humira revenues decreased 12% in 2023 primarily driven by the continued impact of direct biosimilar competition.
The following discussion and analysis of AbbVie's net revenues by product is presented on a constant currency basis. Global Humira sales decreased 37% in 2024. In the United States, Humira sales decreased 41% in 2024 primarily driven by direct biosimilar competition following loss of exclusivity on January 31, 2023.
Future Cash Requirements Contractual Obligations The following table summarizes AbbVie's estimated material contractual obligations as of December 31, 2023: (in millions) Total Current Long-term Long-term debt, including current portion $ 59,245 $ 7,170 $ 52,075 Interest on long-term debt (a) 26,273 2,313 23,960 Contingent consideration liabilities (b) 19,890 1,952 17,938 (a) Includes estimated future interest payments on long-term debt.
Future Cash Requirements Contractual Obligations The following table summarizes AbbVie's estimated material contractual obligations as of December 31, 2024: (in millions) Total Current Long-term Long-term debt, including current portion $ 66,841 $ 6,771 $ 60,070 Interest on long-term debt (a) 36,040 2,764 33,276 Contingent consideration liabilities (b) 21,666 2,589 19,077 (a) Includes estimated future interest payments on long-term debt.
Investing cash flows in 2022 included payments made for capital expenditures of $695 million, other acquisitions and investments of $539 million, $255 million cash consideration paid to acquire DJS Antibodies Ltd offset by cash acquired and net revenues and maturities of investments securities totaling $92 million.
Investing cash flows in 2024 included $18.5 billion cash consideration paid to acquire ImmunoGen and Cerevel Therapeutics offset by cash acquired of $952 million, net sales and maturities of investment securities of $482 million, payments made for other acquisitions and investments of $3.0 billion and capital expenditures of $974 million.
The one-time transition tax liability was $3.0 billion as of December 31, 2023 and is payable in three future annual installments. Liabilities for unrecognized tax benefits totaled $6.7 billion as of December 31, 2023. It is not possible to reliably estimate the timing of the future cash outflows related to these liabilities.
Liabilities for unrecognized tax benefits totaled $5.0 billion as of December 31, 2024. It is not possible to reliably estimate the timing of the future cash outflows related to these liabilities. See Note 14 to the Consolidated Financial Statements for additional information on these unrecognized tax benefits.
AbbVie expects to achieve its strategic objectives through: • Skyrizi and Rinvoq revenue growth driven by increasing market share and Skyrizi indication expansion. • Successful integration of the ImmunoGen, Inc. and proposed Cerevel Therapeutics acquisitions. • Advancing our oncology portfolio driven by Venclexta, strong commercial execution of Epkinly, Elahere and other new product launches and effectively managing regulatory, market and competitive challenges impacting Imbruvica. • Aesthetics revenue growth driven by global expansion, increasing market penetration of Botox and Juvederm Collection and strong commercial execution of new product launches. • Neuroscience revenue growth driven by Vraylar, Botox Therapeutic, Ubrelvy and Qulipta as well as strong commercial execution of new product launches. • Maximizing AbbVie's existing eye care portfolio. • Continuing to effectively manage the impact of Humira biosimilar erosion. 33 | 2023 Form 10-K • The favorable impact of pipeline products and indications recently approved or currently under regulatory review where approval is expected in 2024.
AbbVie expects to achieve its strategic objectives through: • Maximizing revenue growth of our key on-market products, including Skyrizi, Rinvoq, Venclexta, Elahere, Vraylar, Ubrelvy, Qulipta, Vyalev/Produodopa, Botox and Juvederm Collection. • Advancing our research and development pipeline by delivering late-stage pipeline milestones, achieving key proof-of-concept objectives across therapeutic areas and continuing to invest in key on-market product indication expansion. • Maximizing the value of key acquisitions as well as continuing to invest in external innovation. • Continuing to effectively manage the impact of Humira biosimilar erosion. • The favorable impact of pipeline products and indications recently approved or currently under regulatory review where approval is expected in 2025.
The CRL did not request that AbbVie conduct additional efficacy and safety trials related to the drug. • In December 2023, AbbVie submitted the Complete Response Resubmission for NDA for ABBV-951. • In January 2024, AbbVie announced the launch of Produodopa (ABBV-951) in the European Union for the treatment of advanced Parkinson's disease with severe motor fluctuations and hyperkinesia (excessive movement) or dyskinesia (involuntary movement), and when available combinations of Parkinson's medicinal products have not given satisfactory results. 37 | 2023 Form 10-K RESULTS OF OPERATIONS Net Revenues The comparisons presented at constant currency rates reflect comparative local currency net revenues at the prior year's foreign exchange rates.
Neuroscience Vyalev/Produodopa • In January 2024, AbbVie announced the launch of Produodopa (ABBV-951) in the European Union for the treatment of advanced Parkinson's disease with severe motor fluctuations and hyperkinesia (excessive movement) or dyskinesia (involuntary movement), and when available combinations of Parkinson's medicinal products have not given satisfactory results. • In June 2024, AbbVie announced it received a Complete Response Letter (CRL) from the FDA for the New Drug Application (NDA) for ABBV-951 for the treatment of motor fluctuations in adults with advanced Parkinson's disease.
There have been no changes to these commitments that would have a material impact on the company’s ability to meet either short-term or long-term future cash requirements. Income Taxes Future income tax cash requirements include a one-time transition tax liability on a mandatory deemed repatriation of previously untaxed earnings of foreign subsidiaries resulting from U.S. tax reform enacted in 2017.
Income Taxes Future income tax cash requirements include a one-time transition tax liability on a mandatory deemed repatriation of previously untaxed earnings of foreign subsidiaries resulting from U.S. tax reform enacted in 2017. The one-time transition tax liability was $2.2 billion as of December 31, 2024 and is payable in two future annual installments.
Rebates AbbVie provides rebates to pharmacy benefit managers, state government Medicaid programs, insurance companies that administer Medicare drug plans, wholesalers, group purchasing organizations and other government agencies and private entities. Rebate and chargeback accruals are accounted for as variable consideration and are recorded as a reduction to revenue in the period the related product is sold.
For the majority of sales, the company transfers control, invoices the customer and recognizes revenue upon shipment to the customer. 45 | 2024 Form 10-K Rebates AbbVie provides rebates to pharmacy benefit managers, state government Medicaid programs, insurance companies that administer Medicare drug plans, wholesalers, group purchasing organizations and other government agencies and private entities.
Oncology Epkinly • In March 2023, AbbVie initiated a Phase 3 clinical trial to evaluate epcoritamab in combination with R-CHOP compared to R-CHOP in patients with newly diagnosed diffuse large B-cell lymphoma (DLBCL). • In May 2023, AbbVie announced that the FDA approved Epkinly (epcoritamab) as the first bispecific antibody to treat adult patients with relapsed or refractory (R/R) DLBCL. • In September 2023, AbbVie announced that the EC approved Tepkinly (epcoritamab) for adults with R/R DLBCL after two or more lines of systemic therapy. • In November 2023, AbbVie announced that the FDA granted Breakthrough Therapy Designation to Epkinly for the treatment of adult patients with R/R follicular lymphoma after two or more therapies.
Oncology Epkinly • In March 2024, AbbVie initiated a Phase 3 clinical trial to evaluate Epkinly in combination with rituximab and lenalidomide in patients with previously untreated follicular lymphoma (FL). 35 | 2024 Form 10-K • In June 2024, AbbVie announced that the FDA approved Epkinly for the treatment of adults with relapsed or refractory (R/R) FL after two or more lines of prior therapy.
Operating cash flows also reflected AbbVie’s contributions to its defined benefit plans of $366 million in 2023 and $357 million in 2022. Investing cash flows in 2023 included payments made for other acquisitions and investments of $1.2 billion, capital expenditures of $777 million, and net purchases of investments securities totaling $22 million.
Investing cash flows in 2023 included payments made for other acquisitions and investments of $1.2 billion, capital expenditures of $777 million and net purchases of investments securities totaling $22 million. Financing cash flows in 2024 included the issuance of unsecured senior notes totaling $15.0 billion aggregate principal which were used to finance the acquisitions of ImmunoGen and Cerevel Therapeutics.
Net revenues for Qulipta increased greater than 100% in 2023 primarily driven by continued strong market share uptake as well as market growth. Net revenues were also favorably impacted by the regulatory approval of Qulipta for the preventive treatment of chronic migraine in adults.
Net revenues for Qulipta increased 61% in 2024 primarily driven by continued strong market share uptake as well as market growth.
R&D expense percentage in 2023 was also unfavorably impacted by an intangible asset impairment charge of $630 million. 41 | 2023 Form 10-K Acquired IPR&D and Milestones years ended December 31 (in millions) 2023 2022 2021 Upfront charges $ 582 $ 445 $ 962 Development milestones 196 252 162 Acquired IPR&D and milestones $ 778 $ 697 $ 1,124 Acquired IPR&D and milestones expense in 2022 included a charge related to the upfront payment of $130 million to acquire Syndesi Therapeutics SA.
See Note 5 to the Consolidated Financial Statements for additional information. 41 | 2024 Form 10-K Acquired IPR&D and Milestones years ended December 31 (in millions) 2024 2023 2022 Upfront charges $ 2,627 $ 582 $ 445 Development milestones 130 196 252 Acquired IPR&D and milestones $ 2,757 $ 778 $ 697 Acquired IPR&D and milestones expense in 2024 included charges related to the upfront payments of $1.4 billion to acquire Aliada Therapeutics Holdings, Inc.
Other Non-Operating Expenses years ended December 31 (in millions) 2023 2022 2021 Interest expense $ 2,224 $ 2,230 $ 2,423 Interest income (540) (186) (39) Interest expense, net $ 1,684 $ 2,044 $ 2,384 Net foreign exchange loss $ 146 $ 148 $ 51 Other expense, net 4,677 2,448 2,500 Interest expense in 2023 decreased compared to 2022 primarily driven by lower average debt balances as a result of deleveraging, partially offset by the impact of higher interest rates.
Other Non-Operating Expenses years ended December 31 (in millions) 2024 2023 2022 Interest expense $ 2,808 $ 2,224 $ 2,230 Interest income (648) (540) (186) Interest expense, net $ 2,160 $ 1,684 $ 2,044 Net foreign exchange loss $ 21 $ 146 $ 148 Other expense, net 3,240 4,677 2,448 Interest expense in 2024 increased compared to 2023 primarily due to the incremental interest associated with financing the ImmunoGen and Cerevel Therapeutics acquisitions.
Gross margin percentage for 2023 was unfavorably impacted by intangible asset impairment charges of $3.6 billion primarily related to Imbruvica, CoolSculpting and Liletta, higher amortization of intangibles and changes in product mix, partially offset by the favorable tax law changes in Puerto Rico.
Gross margin percentage for 2024 was favorably impacted by lower intangible asset impairment charges and lower amortization of intangibles. Intangible asset impairment charges were $3.6 billion in 2023.
Selling, General and Administrative Percent change years ended December 31 (dollars in millions) 2023 2022 2021 2023 2022 Selling, general and administrative $ 12,872 $ 15,260 $ 12,349 (16) % 24 % as a percent of net revenues 24 % 26 % 22 % Selling, general and administrative (SG&A) expenses as a percentage of net revenues decreased in 2023 compared to the prior year primarily due to income of $485 million driven by a favorable settlement of a litigation matter in 2023 compared to litigation reserve charges of $2.5 billion in 2022, partially offset by the unfavorable impact of increased brand investments and lower net revenues primarily driven by the Humira loss of exclusivity in the United States.
Selling, General and Administrative Percent change years ended December 31 (dollars in millions) 2024 2023 2022 2024 2023 Selling, general and administrative $ 14,752 $ 12,872 $ 15,260 15 % (16) % as a percent of net revenues 26 % 24 % 26 % Selling, general and administrative (SG&A) expenses as a percentage of net revenues increased in 2024 compared to 2023.
In the United States, Juvederm Collection net revenues decreased 5% primarily driven by decreased consumer demand due to economic pressures, partially offset by new product launches. Internationally, Juvederm Collection revenue increased 2% driven by increased consumer demand across key international markets and price.
In the United States, Botox Cosmetic net revenues increased 1% primarily driven by favorable pricing, partially offset by the unfavorable impact of customer inventory destocking and decreased consumer demand. Internationally, Botox Cosmetic net revenues increased 7% primarily driven by favorable pricing and increased consumer demand across key international markets.
Navitoclax • In July 2023, AbbVie announced top-line results from the Phase 3 TRANSFORM-1 clinical trial evaluating the safety and efficacy of navitoclax, a BCL-XL/BCL-2 inhibitor, in combination with ruxolitinib in adult patients with primary or secondary myelofibrosis (MF).
Navitoclax • In April 2024, AbbVie announced its decision to discontinue the Phase 3 TRANSFORM-2 study evaluating navitoclax, a BCL-XL/BCL-2 inhibitor, plus ruxolitinib in patients with R/R myelofibrosis following evaluation of the totality of data from the Phase 3 TRANSFORM-1 trial and feedback from regulators.
Teliso-V • In November 2023, AbbVie announced positive top-line results from the Phase 2 LUMINOSITY trial evaluating telisotuzumab-vedotin (Teliso-V) in patients with c-Met protein overexpression, epidermal growth factor receptor wild type, advanced/metastatic nonsquamous non-small cell lung cancer.
Teliso-V • In September 2024, AbbVie announced submission of a Biologics License Application to the FDA for accelerated approval of Teliso-V in adult patients with previously treated, locally advanced or metastatic epidermal growth factor receptor (EGFR) wild type, nonsquamous non-small cell lung cancer (NSCLC) with c-Met protein overexpression.
Financing cash flows in 2022 included repayment of $3.1 billion aggregate principal amount of the company's 2.9% senior notes, $3.0 billion aggregate principal amount of the company's 2.3% senior notes, $2.9 billion aggregate principal amount of the company's 3.45% senior notes, $1.7 billion aggregate principal amount of the company's 3.25% senior notes, $1.0 billion aggregate principal amount of the company’s 3.2% senior notes and $750 million aggregate principal amount of the company's floating rate senior notes.
Additionally, financing cash flows included the issuance and repayment of $5.0 billion under the term loan credit agreement and repayments of $3.8 billion aggregate principal amount of 2.60% senior notes, €1.5 billion aggregate principal amount of 1.38% senior euro notes, €700 million aggregate principal amount of 1.25% senior euro notes, $1.0 billion aggregate principal amount of 3.85% senior notes, $99 million of secured term notes assumed from ImmunoGen in conjunction with the acquisition and settlement of $400 million aggregate amount of 2.5% convertible senior notes assumed from Cerevel Therapeutics.
Confirming the Committee for Medicinal Products for Human Use (CHMP) opinion, the previously approved Rinvoq indication statements were not changed and the dosage and special warnings for all JAK inhibitors were updated to include additional information about the risks associated with JAK inhibitors. 2023 Form 10-K | 34 • In April 2023, AbbVie announced that the EC approved Rinvoq for the treatment of adults with moderately to severely active Crohn’s disease who have had an inadequate response, lost response or were intolerant to either conventional therapy or a biologic agent. • In May 2023, AbbVie announced that the U.S.
Skyrizi • In June 2024, AbbVie announced that the FDA approved Skyrizi for adults with moderately to severely active ulcerative colitis (UC). • In July 2024, AbbVie announced that the European Commission (EC) approved Skyrizi for the treatment of adult patients with moderately to severely active UC who have had an inadequate response to, lost response to, or were intolerant to conventional therapy or a biologic therapy.
Internationally, Venclexta net revenues increased 22% primarily driven by continued market share uptake and market growth across all indications. Net revenues for Botox Cosmetic increased 4% in 2023. In the United States, Botox Cosmetic net revenues increased 1% driven by increased consumer demand due to economic recovery in the toxin market.
Net revenues for Juvederm Collection decreased 12% in 2024 primarily driven by the unfavorable impact of decreased consumer demand and customer inventory destocking. Net revenues for Botox Therapeutic increased 11% in 2024 primarily driven by continued market share uptake as well as market growth.
See Note 14 to the Consolidated Financial Statements for additional information on these unrecognized tax benefits.
See Note 5 to the Consolidated Financial Statements for additional information on the acquisition. Subsequent to the acquisition date, AbbVie's consolidated financial statements include the assets, liabilities, operating results and cash flows of ImmunoGen.
R&D expense percentage for 2023 was unfavorably impacted by increased funding to support all stages of the company's pipeline assets and lower net revenues primarily driven by the Humira loss of exclusivity in the United States.
R&D expense percentage for 2024 was unfavorably impacted by the intangible asset impairment charge of $4.5 billion related to emraclidine compared to an intangible asset impairment charge of $630 million in 2023, increased funding to support all stages of the company's pipeline assets and acquisition and integration costs incurred in connection with the ImmunoGen and Cerevel Therapeutics acquisitions including cash-settled, post-closing expense for employee incentive awards.

… 70 more changes not shown on this page.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

5 edited+0 added−0 removed3 unchanged
Biggest changeThe following table reflects the total foreign currency forward exchange contracts outstanding at December 31, 2023 and 2022: 2023 2022 as of December 31 (in millions) Contract amount Weighted average exchange rate Fair and carrying value receivable/(payable) Contract amount Weighted average exchange rate Fair and carrying value receivable/(payable) Receive primarily U.S. dollars in exchange for the following currencies: Euro $ 10,707 1.107 $ (99) $ 8,507 1.071 $ 9 Canadian dollar 1,244 1.329 (8) 1,302 1.312 40 Japanese yen 726 139.636 2 567 133.271 (3) British pound 505 1.271 (1) 772 1.234 (8) Chinese yuan 479 7.104 — 596 7.024 (5) All other currencies 2,263 n/a (31) 1,954 n/a (2) Total $ 15,924 $ (137) $ 13,698 $ 31 The company estimates that a 10% appreciation in the underlying currencies being hedged from their levels against the U.S. dollar, with all other variables held constant, would decrease the fair value of foreign exchange forward contracts by $1.6 billion at December 31, 2023.
Biggest changeThe following table reflects the total foreign currency forward exchange contracts outstanding at December 31, 2024 and 2023: 2024 2023 as of December 31 (in millions) Contract amount Weighted average exchange rate Fair and carrying value receivable/(payable) Contract amount Weighted average exchange rate Fair and carrying value receivable/(payable) Receive primarily U.S. dollars in exchange for the following currencies: Euro $ 10,590 1.094 $ 183 $ 10,707 1.107 $ (99) Canadian dollar 1,042 1.365 39 1,244 1.329 (8) Japanese yen 836 148.386 40 726 139.636 2 British pound 461 1.271 (1) 505 1.271 (1) All other currencies 2,308 n/a 17 2,742 n/a (31) Total $ 15,237 $ 278 $ 15,924 $ (137) The company estimates that a 10% appreciation in the underlying currencies being hedged from their levels against the U.S. dollar, with all other variables held constant, would decrease the fair value of foreign exchange forward contracts by $1.5 billion at December 31, 2024.
See Note 11 to the Consolidated Financial Statements for additional information regarding the company's financial instruments and hedging strategies. Foreign Currency Risk AbbVie's primary net foreign currency exposures are the Euro, Japanese yen, Canadian dollar, Chinese yuan and British pound.
See Note 11 to the Consolidated Financial Statements for additional information regarding the company's financial instruments and hedging strategies. Foreign Currency Risk AbbVie's primary net foreign currency exposures are the Euro, Japanese yen, Canadian dollar and British pound.
Interest Rate Risk The company estimates that an increase in interest rates of 100 basis points would adversely impact the fair value of AbbVie's interest rate swap contracts by approximately $216 million at December 31, 2023. If realized, the fair value reduction would affect earnings over the remaining life of the contracts.
Interest Rate Risk The company estimates that an increase in interest rates of 100 basis points would adversely impact the fair value of AbbVie's interest rate swap contracts by approximately $140 million at December 31, 2024. If realized, the fair value reduction would affect earnings over the remaining life of the contracts.
The company estimates that an increase of 100 basis points in long-term interest rates would decrease the fair value of long-term debt by $3.9 billion at December 31, 2023. A 100 basis point change is believed to be a reasonably possible near-term change in interest rates. 49 | 2023 Form 10-K
The company estimates that an increase of 100 basis points in long-term interest rates would decrease the fair value of long-term debt by $4.6 billion at December 31, 2024. A 100 basis point change is believed to be a reasonably possible near-term change in interest rates. 49 | 2024 Form 10-K
As of December 31, 2023, the company has €5.4 billion aggregate principal amount of unsecured senior Euro notes outstanding, which are exposed to foreign currency risk. The company designated these foreign currency denominated notes as hedges of its net investments in certain foreign subsidiaries and affiliates.
As of December 31, 2024, the company has unsecured senior Euro notes outstanding, which are exposed to foreign currency risk. The company designated €3.1 billion aggregate principal amount of these foreign currency denominated notes as hedges of its net investments in certain foreign subsidiaries and affiliates.

Other ABBV 10-K year-over-year comparisons