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What changed in AbbVie's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of AbbVie's 2024 and 2025 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 2025 report.

+324 added−311 removedSource: 10-K (2026-02-20) vs 10-K (2025-02-14)

Top changes in AbbVie's 2025 10-K

324 paragraphs added · 311 removed · 245 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

78 edited+12 added−12 removed122 unchanged
Biggest changeIt 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.
Biggest changeIt is also indicated for the treatment of moderate to severe active ulcerative colitis and Crohn's disease in adult patients who have an inadequate response or were intolerant to either conventional therapy or a biologic agent.
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.
Juvederm Collection 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.
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.
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 (FFDCA), the Public Health Service Act (PHSA) and the regulations implementing these statutes.
The Inflation Reduction Act of 2022 (the IRA) requires: (i) the government to set prices for select high expenditure Medicare Part D drugs (prices effective beginning in 2026) and Part B drugs (prices effective beginning in 2028) that are more than nine years (for small-molecule drugs) or 13 years (for biological products) from their FDA approval, (ii) manufacturers to pay a rebate for Medicare Part B and Part D drugs when prices for those drugs increase faster than inflation beginning in 2022 for Part D and 2023 for Part B, and (iii) a Medicare Part D redesign replacing the current coverage gap provisions and establishing a $2,000 cap for out-of-pocket costs for Medicare beneficiaries beginning in 2025, with manufacturers being responsible for 10% of costs up to the $2,000 cap and 20% after that cap is reached.
The Inflation Reduction Act of 2022 (IRA) requires: (i) the government to set prices for select high expenditure Medicare Part D drugs (prices effective beginning in 2026) and Part B drugs (prices effective beginning in 2028) that are more than nine years (for small-molecule drugs) or 13 years (for biological products) from their FDA approval, (ii) manufacturers to pay a rebate for Medicare Part B and Part D drugs when prices for those drugs increase faster than inflation beginning in 2022 for Part D and 2023 for Part B and (iii) a Medicare Part D redesign replacing the current coverage gap provisions and establishing a $2,000 cap for out-of-pocket costs for Medicare beneficiaries beginning in 2025, with manufacturers being responsible for 10% of costs up to the $2,000 cap and 20% after that cap is reached.
Further, the FDA continues to regulate device labeling, and prohibits the promotion of products for unapproved or “off-label” uses along with other labeling restrictions. European Union. Medical device products that are marketed in the European Union must comply with the requirements of the Medical Device Regulation (the MDR), which came into effect in May 2021.
Further, the FDA continues to regulate device labeling and prohibits the promotion of products for unapproved or “off-label” uses along with other labeling restrictions. European Union. Medical device products that are marketed in the European Union must comply with the requirements of the Medical Device Regulation (MDR), which came into effect in May 2021.
If preclinical testing of an identified compound proves successful, the compound moves into clinical development which generally includes the following phases: • Phase 1— involves the first human tests in a small number of healthy volunteers or patients to assess safety, tolerability and doses for later phases. • Phase 2— tests different doses of the drug in a disease state in order to assess efficacy. • Phase 3— tests a drug that demonstrates favorable results in the earlier phases in a significantly larger patient population to further demonstrate efficacy and safety in order to meet requirements to enable global approval.
If preclinical testing of an identified compound proves successful, the compound moves into clinical development which generally includes the following phases: • Phase 1— involves the first human tests in a small number of healthy volunteers or patients to assess safety, tolerability and doses for later phases. • Phase 2— tests different doses of the drug in a disease state in order to assess efficacy. • Phase 3— tests a drug that demonstrates favorable results in the earlier phases in a significantly larger patient population to further demonstrate efficacy and safety in order to meet regulatory requirements to enable global approval.
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, 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 (CMS) for subsequent public disclosure.
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).
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).
Imbruvica currently is approved for the treatment of adult patients with blood cancers such as chronic lymphocytic leukemia (CLL), as well as certain forms of non-Hodgkin lymphoma. Imbruvica is approved in adult and pediatric patients one year and older with chronic graft versus host disease after failure of one or more lines of systemic therapy. Venclexta/Venclyxto.
Imbruvica currently is approved for the treatment of adult patients with blood cancers such as chronic lymphocytic leukemia (CLL), as well as certain forms of non-Hodgkin lymphoma. Imbruvica is approved in adult and pediatric patients one year and older with chronic graft versus host disease after failure of one or more lines of systemic therapy. Venclexta.
It is also indicated for the treatment of adult and pediatric patients (12 years and older or weighing at least 45 kilograms) with HCV genotype 1 infection, who previously have been treated with a regimen containing an HCV NS5A inhibitor or an NS3/4A protease inhibitor, but not both. Creon.
It is also indicated for the treatment of adult and pediatric patients (12 years and older or weighing at least 45 kilograms) with HCV genotype 1 infection, who previously have been treated with a regimen containing an HCV NS5A inhibitor or an NS3/4A protease inhibitor, but not both.
A critical component of AbbVie's strategy is to instill an inclusive mindset in all AbbVie leaders and employees, so the company continues to realize the full value of its workforce from recruitment through retirement. AbbVie's Employee Resource Groups also help the company nurture an inclusive culture by building community and creating connections.
A critical component of AbbVie's strategy is to instill an inclusive mindset in all AbbVie leaders and employees, so the company continues to realize the full value of its workforce from recruitment through retirement. AbbVie's Employee Resource Groups also help the company nurture an inclusive culture for all by building community and creating connections.
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.
Botox Cosmetic (onabotulinumtoxinA) 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.
The length of the patent extension is roughly based on 50 percent of the period of time from the filing of an Investigational New Drug Application (NDA) for a compound to the submission of the NDA for such compound, plus 100 percent of the time period from NDA submission to regulatory approval.
The length of the patent extension is roughly based on 50% of the period of time from the filing of an Investigational New Drug Application (NDA) for a compound to the submission of the NDA for such compound, plus 100% of the time period from NDA submission to regulatory approval.
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.
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.
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.
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. Juvederm Collection.
ITEM 1. BUSINESS Overview AbbVie or "the company" refer to AbbVie Inc., or AbbVie Inc. and its consolidated subsidiaries, as the context requires. AbbVie is a global, diversified research-based biopharmaceutical company positioned for success with a comprehensive product portfolio that has leadership positions across immunology, oncology, aesthetics, neuroscience and eye care.
ITEM 1. BUSINESS Overview AbbVie or "the company" refer to AbbVie Inc., or AbbVie Inc. and its consolidated subsidiaries, as the context requires. AbbVie is a global, diversified research-based biopharmaceutical company positioned for success with a comprehensive product portfolio that has leadership positions across immunology, neuroscience, oncology and aesthetics.
Rinvoq (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.
Rinvoq (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 North America, 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 Giant cell arteritis U.S., Canada, European Union, Japan Active polyarticular juvenile idiopathic arthritis U.S.
In addition, Botox Therapeutic is approved to treat spasticity in patients two years of age and older, cervical dystonia in adults, as well as other conditions. Botox is marketed in other countries around the world and licenses will vary. Botox Therapeutic is marketed by GSK in Japan. Vraylar.
In addition, Botox Therapeutic is approved to treat spasticity in patients two years of age and older, cervical dystonia in adults as well as other conditions. Botox is marketed in other countries around the world and licenses will vary. Botox Therapeutic is marketed by GSK in Japan. Ubrelvy.
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.
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.
These products are: Mavyret/Maviret. Mavyret (glecaprevir/pibrentasvir) is approved in the United States and European Union (Maviret) for the treatment of adult and pediatric patients (12 years and older or weighing at least 45 kilograms) with chronic HCV genotype 1-6 infection without cirrhosis and with compensated cirrhosis (Child-Pugh A).
Mavyret (glecaprevir/pibrentasvir) is approved in the United States and European Union (Maviret) for the treatment of adult and pediatric patients (12 years and older or weighing at least 45 kilograms) with chronic HCV genotype 1-6 infection without cirrhosis and with compensated cirrhosis (Child-Pugh A).
Many emerging markets take steps to reduce pharmaceutical product prices, in some cases through direct price controls and in others through the promotion of generic/biosimilar alternatives to branded pharmaceuticals. Since AbbVie markets its products worldwide, certain products of a local nature and variations of product lines must also meet other local regulatory requirements.
Many emerging markets take steps to reduce pharmaceutical product prices, in some cases through direct price controls and in others through the promotion of generic/biosimilar alternatives to branded pharmaceuticals. 11 | 2025 Form 10-K Since AbbVie markets its products worldwide, certain products of a local nature and variations of product lines must also meet other local regulatory requirements.
DRG and PPS entitle a health care facility to a fixed reimbursement based on the diagnosis and/or procedure rather than actual costs incurred in patient treatment, thereby increasing the incentive for the facility to limit or control expenditures for many health care products.
DRG and PPS entitle a health care facility to a fixed 2025 Form 10-K | 10 reimbursement based on the diagnosis and/or procedure rather than actual costs incurred in patient treatment, thereby increasing the incentive for the facility to limit or control expenditures for many health care products.
There is no guarantee when, or if, a molecule will receive the regulatory approval required to launch a new drug or indication. In addition to the development of new products, delivery devices and new formulations, research and development projects also may include Phase 4 trials, sometimes called post-marketing studies.
There is no guarantee when, or if, a molecule will receive the regulatory approval required to launch a new drug or indication. 2025 Form 10-K | 8 In addition to the development of new products, delivery devices and new formulations, research and development projects also may include Phase 4 trials, sometimes called post-marketing studies.
Similar to the requirements in Japan and China, certain countries (notably South Korea, Taiwan, India and Russia) also generally require that clinical studies that include data from patients in those countries be conducted in order to support local regulatory approval. The requirements governing the conduct of clinical trials and product licensing also vary.
Similar to the requirements in Japan and 9 | 2025 Form 10-K China, certain countries (notably South Korea, Taiwan, India and Russia) also generally require that clinical studies that include data from patients in those countries be conducted in order to support local regulatory approval. The requirements governing the conduct of clinical trials and product licensing also vary.
Medical devices that comply with the MDR are entitled to bear a Conformité Européenne marking evidencing such compliance and may be marketed in the European Union. Failure to comply with these domestic and international regulatory requirements could affect AbbVie’s ability to market and sell AbbVie’s products in these countries.
Medical devices that comply with the MDR are entitled to bear a Conformité Européenne marking evidencing such compliance and may be 2025 Form 10-K | 12 marketed in the European Union. Failure to comply with these domestic and international regulatory requirements could affect AbbVie’s ability to market and sell AbbVie’s products in these countries.
The extension, however, cannot exceed five years and the patent term remaining after regulatory approval cannot exceed 14 years. Biological products licensed under the PHSA are similarly eligible for terms of patent restoration. Pharmaceutical products may be entitled to other forms of legal or regulatory exclusivity upon approval.
The extension, however, cannot exceed five years and the patent term remaining after regulatory approval cannot exceed 14 years. Biological products licensed under the PHSA are similarly eligible for terms of patent restoration. 2025 Form 10-K | 6 Pharmaceutical products may be entitled to other forms of legal or regulatory exclusivity upon approval.
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.
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.
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.
AbbVie’s Aesthetics portfolio consists of facial injectables, plastics and regenerative medicine, body contouring and skincare products, which hold market-leading positions in the United States and in key markets around the world. These products are: Botox Cosmetic.
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.
In 2025, 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 43% of AbbVie's 2025 gross revenues in the United States.
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.
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 to obtain approval can be long.
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.
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 2025 were approximately $17 million and operating expenditures were approximately $44 million.
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.
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 terms of safety, purity and potency.
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.
The law also includes an extensive process for the innovator biologic and biosimilar manufacturer to litigate patent 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.
In the European Union, Rinvoq is indicated for the treatment of moderate to severe rheumatoid arthritis in adults, for active psoriatic arthritis in adults who have an inadequate response or intolerance to disease-modifying anti-rheumatic medicines (DMARDs), and for active axial spondyloarthritis in adults.
In the European Union, Rinvoq is indicated for the treatment of moderate to severe active rheumatoid arthritis and active psoriatic arthritis in adult patients who have an inadequate response or intolerance to disease-modifying anti-rheumatic medicines (DMARDs).
Licensing, Acquisitions and Other Arrangements In addition to its independent efforts to develop and market products, AbbVie enters into arrangements such as acquisitions, option-to-acquire agreements, licensing arrangements, option-to-license arrangements, strategic alliances, co-promotion arrangements, co-development and co-marketing agreements and joint ventures.
Licensing, Acquisitions and Other Arrangements In addition to its independent efforts to develop and market products, AbbVie enters into arrangements such as acquisitions, option-to-acquire agreements, licensing arrangements, option-to-license arrangements, strategic alliances, co- 7 | 2025 Form 10-K promotion arrangements, co-development and co-marketing agreements and joint ventures.
Vraylar is indicated for acute and maintenance treatment of schizophrenia in adults, acute treatment of manic or mixed episodes associated with bipolar disorder in adults, acute treatment of depressive episodes associated with bipolar I disorder in adults and as an adjunctive treatment in major depressive disorder. Duopa and Duodopa (carbidopa and levodopa).
Vraylar is indicated for acute and maintenance treatment of schizophrenia in adults, acute treatment of manic or mixed episodes associated with bipolar disorder in adults, acute treatment of depressive episodes associated with bipolar I disorder in adults and as an adjunctive treatment in major depressive disorder. Botox Therapeutic.
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.
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.
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 .
Elahere. Elahere (mirvetuximab soravtansine-gynx) is an antibody-drug conjugate (ADC) used to treat certain types of cancer. 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 .
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.
In the United States, Rinvoq is indicated for the treatment of moderate to severe active rheumatoid arthritis, active ankylosing spondylitis, active non-radiographic axial spondyloarthritis, moderate to severe ulcerative colitis and moderate to severe active Crohn's disease in adult patients who have an inadequate response or intolerance to one or more tumor necrosis factor (TNF) blockers.
The European Union has adopted directives and other legislation governing labeling, advertising, distribution, supply, pharmacovigilance and marketing of pharmaceutical products. Such legislation provides mandatory standards throughout the European Union and permits member states to supplement these standards with additional regulations.
The effect of reducing prices and reimbursement could significantly impact revenues for certain of our products. European Union. The European Union has adopted directives and other legislation governing labeling, advertising, distribution, supply, pharmacovigilance and marketing of pharmaceutical products. Such legislation provides mandatory standards throughout the European Union and permits member states to supplement these standards with additional regulations.
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 .
When administered for Crohn’s disease and ulcerative colitis, Skyrizi is given as three induction doses via IV infusion, followed by subcutaneous injection via an on-body injector every eight weeks. Skyrizi is sold in numerous other markets worldwide. 1 | 2025 Form 10-K Rinvoq .
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.
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.
One of AbbVie's mentorship programs allows employees to self-nominate as mentors or mentees and facilitates meaningful relationships supporting employees’ career and development goals. AbbVie also provides structured, broad-based development opportunities, focusing on high-performance skills and leadership training. AbbVie's talent philosophy holds leaders accountable for building a high-performing organization, and the company provides development opportunities for all levels of leadership.
One of AbbVie's mentorship programs allows employees to self-nominate as mentors or mentees and facilitates meaningful relationships supporting employees’ career and development goals. AbbVie also provides structured, broad-based development opportunities, focusing on high-performance skills and leadership training.
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.
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. In addition, AbbVie’s trade secrets may otherwise become known or be independently discovered by competitors.
The acquisitions and option-to-acquire agreements typically include, among other terms and conditions, non-refundable purchase price payments or option fees, option exercise payments, milestones or earn-outs and other customary terms and obligations.
The acquisitions and option-to-acquire agreements typically include, among other terms and conditions, upfront purchase price payments or option fees, option exercise payments, milestones or earn-outs and other customary terms and obligations. The licensing and other arrangements typically include, among other terms and conditions, upfront license fees, option fees and option exercise payments, milestone payments and royalty and/or profit sharing obligations.
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 whose disease is not adequately controlled with other systemic drug products, including biologics, or when use of those therapies are inadvisable.
It is also indicated for the treatment of adults and adolescents 12 years of age and older with moderate to severe atopic dermatitis whose disease is not adequately controlled with other systemic drug products, including biologics, or when use of those therapies are inadvisable.
In 2025, capital expenditures for pollution control are estimated to be approximately $15 million and operating expenditures are estimated to be approximately $37 million.
In 2026, capital expenditures for pollution control are estimated to be approximately $21 million and operating expenditures are estimated to be approximately $46 million.
The Ways We Work are designed to ensure that every AbbVie employee is aware of the company's cultural expectations. AbbVie integrates the Ways We Work into all talent processes, forming the basis for assessing performance, prioritizing development and ultimately rewarding employees.
The Ways We Work are designed to ensure that every AbbVie employee is aware of the company's cultural expectations. AbbVie integrates the Ways We Work into all talent processes, forming the basis for assessing performance, prioritizing development and ultimately rewarding employees. AbbVie believes its culture creates strong engagement, which is measured regularly through a confidential, third-party all-employee survey.
For example, AbbVie's immunology products compete with anti-TNF products, JAK inhibitors and other competitive products intended to treat a number of disease states, and AbbVie's oncology products compete with BTK inhibitors and other competitive products intended to treat certain cancers.
For example, AbbVie's immunology products compete with IL-23 inhibitors, IL-17 inhibitors, JAK inhibitors, biosimilars and other competitive products intended to treat a number of disease states, and AbbVie's oncology products compete with targeted therapies including BTK inhibitors, ADCs, cell therapies and other competitive products intended to treat certain cancers.
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.
Employees AbbVie employed approximately 57,000 employees in over 70 countries as of December 31, 2025. Outside the United States, some of AbbVie's employees are represented by unions or works councils. AbbVie believes that it has good relations with its employees.
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.
Ubrelvy (ubrogepant) is a calcitonin gene-related peptide receptor antagonist indicated for the acute treatment of migraine with or without aura in adults. 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.
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.
In August 2023, the U.S. Department of Health and Human Services (HHS), through CMS, selected Imbruvica as one of 10 medicines subject to government-set prices in Medicare Part D beginning January 1, 2026, and in January 2025, selected Vraylar and Linzess as two of 15 medicines subject to government-set prices in Medicare Part D beginning January 1, 2027.
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.
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 and other critical skill sets, 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.
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.
It is approved to treat the following autoimmune diseases in 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 Neuroscience products.
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.
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. It is marketed as Venclexta in the United States and primarily as Venclyxto outside of the United States.
Botox Therapeutic (onabotulinumtoxinA injection) is an acetylcholine release inhibitor and a neuromuscular blocking agent that is injected into muscle tissue.
Botox Therapeutic (onabotulinumtoxinA) is an injectable product, an acetylcholine release inhibitor and a neuromuscular blocking agent.
Other aesthetics products include, but are not limited to, Alloderm regenerative dermal tissue, CoolSculpting body contouring technology, Natrelle breast implants, the SkinMedica skincare line, Latisse eyelash solution and DiamondGlow dermabrasion technology. Neuroscience products. AbbVie’s neuroscience products address some of the most difficult-to-treat neurologic diseases. These products are: Botox Therapeutic.
Other aesthetics products include, but are not limited to, Alloderm regenerative dermal tissue, CoolSculpting body contouring technology, Natrelle breast implants, the SkinMedica skincare line, Latisse eyelash solution and DiamondGlow dermabrasion technology. 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 .
AbbVie directs its primary marketing efforts toward securing the prescription, or recommendation, of its brand of products by physicians, external experts and other health care providers.
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. AbbVie directs its primary marketing efforts toward securing the prescription, or recommendation, of its brand of products by physicians, external experts and other health care providers.
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.
In addition, certain medical devices and components necessary for the manufacture of AbbVie products are provided by unaffiliated third party suppliers. AbbVie has robust business continuity and supplier monitoring programs. 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.
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. The search for technological innovations in pharmaceutical products is a significant aspect of competition.
In addition, a number of other companies have successfully developed and market products that are being positioned as competitors to Botox. The search for technological innovations in pharmaceutical products is a significant aspect of competition. The introduction of new products by competitors and changes in medical practices and procedures can result in product obsolescence. Price is also a competitive factor.
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.
These patents and applications, including various patents that expire during the period 2026 to the mid 2040s, in aggregate are believed to be of material importance in the operation of AbbVie’s business.
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.
A cornerstone of AbbVie’s human capital management approach is to prioritize fostering an inclusive workforce where all employees have equal opportunity to succeed. 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.
New products or treatments brought to market by AbbVie’s competitors could cause revenues for AbbVie’s products to decrease due to price reductions and sales volume decreases. Biosimilars.
In addition, the substitution of generic and biosimilar pharmaceutical products for branded pharmaceutical products creates competitive pressures on AbbVie's products that do not have patent protection. New products or treatments brought to market by AbbVie’s competitors could cause revenues for AbbVie’s products to decrease due to price reductions and sales volume decreases. Biosimilars.
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.
AbbVie invests in its employees through competitive compensation, benefits and employee support programs and offers best-in-class development and leadership opportunities. 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.
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.
In January 2026, Botox was selected as one of 15 medicines subject to government-set prices in Medicare Parts B and D beginning January 1, 2028. 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.
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.
It is also indicated for the treatment of adult and pediatric patients two years of age and older with active psoriatic arthritis and for the treatment of patients two years of age and older with active polyarticular juvenile idiopathic arthritis who have had an inadequate response or intolerance to one or more TNF blockers.
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.
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.
Skyrizi is approved in multiple countries globally, including the United States, Canada and the European Union, for the treatment of moderate to severe plaque psoriasis in adults who are candidates for systemic therapy or phototherapy. In psoriatic disease (psoriasis or psoriatic arthritis), Skyrizi is administered as a quarterly subcutaneous injection following two induction doses.
It is a biologic therapy approved to treat the following autoimmune diseases in the United States, Canada and Mexico (collectively, 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) North America, European Union, Japan In psoriatic disease (plaque psoriasis or psoriatic arthritis), Skyrizi is administered as a quarterly subcutaneous injection following two induction doses.
Ganfort is a once daily topical fixed combination of bimatoprost 0.03% and timolol 0.5% for the reduction of IOP in adult patients with OAG or OHT. Lumigan is sold in the United States and numerous markets around the world, while Ganfort is approved in the European Union and some markets in South America, the Middle East and Asia. Alphagan/Combigan.
Lumigan is sold in the United States and numerous markets around the world, while Ganfort is approved in the European Union and some markets in South America, the Middle East and Asia. Alphagan/Combigan. Alphagan (brimonidine tartrate ophthalmic solution) is an alpha-adrenergic receptor agonist indicated for the reduction of elevated IOP in patients with open-angle glaucoma or ocular hypertension.
Immunology products. AbbVie maintains an extensive immunology portfolio across rheumatology, dermatology and gastroenterology. AbbVie's immunology products address unmet needs for patients with autoimmune diseases. These products are: Humira. Humira (adalimumab) is a biologic therapy administered as a subcutaneous injection.
Immunology products. AbbVie maintains an extensive immunology portfolio across rheumatology, dermatology and gastroenterology. AbbVie's immunology products address unmet needs for patients with autoimmune diseases. These products are: Skyrizi. Skyrizi (risankizumab) is an interleukin-23 (IL-23) inhibitor that selectively blocks IL-23 by binding to its p19 subunit.
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.
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 leverages numerous resources to identify and enhance strategic and leadership capability, foster employee engagement and create a culture where talent is productive and engaged.
Vraylar (cariprazine) is a dopamine D3-preferring D3/D2 receptor partial agonist and a 5-HT1A receptor partial agonist.
AbbVie’s neuroscience products address some of the most difficult-to-treat neurologic diseases. These products are: Vraylar. Vraylar (cariprazine) is a dopamine D3-preferring D3/D2 receptor partial agonist and a 5-HT1A receptor partial agonist.
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.
Duodopa (carbidopa and levodopa) is a levodopa-carbidopa intestinal gel for the treatment of advanced Parkinson's disease is marketed as Duopa in the United States and primarily as Duodopa outside of the United States. 3 | 2025 Form 10-K Oncology products. AbbVie’s oncology products target some of the most complex and difficult-to-treat cancers. These products are: Imbruvica.
Alphagan (brimonidine tartrate ophthalmic solution) is an alpha-adrenergic receptor agonist indicated for the reduction of elevated IOP in patients with open-angle glaucoma or ocular hypertension. Combigan (brimonidine tartrate/timolol maleate ophthalmic solution) is approved for reducing elevated IOP in patients with glaucoma who require additional or adjunctive IOP-lowering therapy.
Combigan (brimonidine tartrate/timolol maleate ophthalmic solution) is approved for reducing elevated IOP in patients with glaucoma who require additional or adjunctive IOP-lowering therapy. Both Alphagan and Combigan are available for sale in the United States and numerous markets around the world. Other eye care. Other eye care products include Refresh/Optive, Xen, Durysta and Restasis. Other key products.
AbbVie competes with other research-based pharmaceuticals and biotechnology companies that discover, manufacture, market and sell proprietary pharmaceutical products, therapies and biologics.
Orders are generally filled on a current basis and order backlog is not material to AbbVie's business. 5 | 2025 Form 10-K Competition The markets for AbbVie's products are highly competitive. AbbVie competes with other research-based pharmaceuticals and biotechnology companies that discover, manufacture, market and sell proprietary pharmaceutical products, therapies and biologics.
These studies can lead to updates to the data regarding utilization, safety and efficacy of previously marketed products.
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. These studies can lead to updates to the data regarding utilization, safety and efficacy of previously marketed products.
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 .
Qulipta is commercialized in the United States and Canada and is approved in the European Union under the brand name Aquipta. Vyalev. Vyalev (foscarbidopa and foslevodopa) is a subcutaneous 24-hour infusion of levodopa-based therapy for the treatment of motor fluctuations in adults with advanced Parkinson's disease.
AbbVie’s other key products include, among other things, treatments for patients with hepatitis C virus (HCV), metabolic and hormone products that target a number of conditions, including exocrine pancreatic insufficiency and hypothyroidism, as well as endocrinology products 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.
AbbVie’s other key products include, among other things, treatments for patients with hepatitis C virus (HCV), exocrine pancreatic insufficiency, hypothyroidism, irritable bowel syndrome with constipation and chronic idiopathic constipation. These products are: Mavyret.
Removed
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.
Added
For Crohn's disease and ulcerative colitis, it is additionally approved prior to the use of TNF blockers in patients for whom the use of these treatments is clinically inadvisable and who have received at least one approved systemic therapy.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeRebates 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.
Biggest changeAbbVie cannot predict with certainty whether additional government initiatives to contain health care costs or other factors could lead to new or modified regulatory or contractual requirements that include higher or incremental rebates, discounts or other price concessions. Other rebate and discount programs arise from contractual agreements with private payers , including PBMs and managed care organizations .
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.
Products that appear promising in development may fail to reach the market for numerous reasons, including, but not limited to, 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.
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.
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 2025, 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.
In the United States, practices of managed care groups, and institutional and governmental purchasers, as well as federal laws and regulations related to Medicare and Medicaid, contribute to pricing pressures. In particular, the IRA will have the effect of reducing prices and reimbursements for certain of our products, which could significantly impact AbbVie’s results of operations.
In the United States, practices of managed care organizations, and institutional and governmental purchasers, as well as federal laws and regulations related to Medicare and Medicaid, contribute to pricing pressures. In particular, the IRA will have the effect of reducing prices and reimbursements for certain of our products, which could significantly impact AbbVie’s results of operations.
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.
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, neuroscience, oncology and aesthetics.
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.
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; • 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 21 | 2025 Form 10-K • 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.
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.
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 two major products.
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'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 2025.
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.
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. 2025 Form 10-K | 24 Risks Related to AbbVie's Common Stock AbbVie cannot guarantee the timing, amount, or payment of dividends on its common stock or the repurchase of its common stock.
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." 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.
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.
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.
These provisions may also prevent or discourage attempts to remove and replace incumbent directors. 2025 Form 10-K | 26 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.
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.
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.
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.
In such case, the trading price of AbbVie's common stock could decline. 2025 Form 10-K | 14 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.
A goodwill or IPR&D impairment, if any, would be recorded in operating income and could have a material adverse effect on AbbVie’s results of operations and financial condition. Failure to attract, develop and retain highly qualified personnel could affect AbbVie’s ability to successfully develop and commercialize products.
A goodwill or IPR&D impairment, if any, would be recorded in operating income and could have a material adverse effect on AbbVie’s results of operations and financial condition. 23 | 2025 Form 10-K Failure to attract, develop and retain highly qualified personnel could affect AbbVie’s ability to successfully develop and commercialize products.
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.
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. The international nature of AbbVie's business subjects it to additional business risks that may cause its revenue and profitability to decline.
If AbbVie loses its investment grade credit rating or adequate funds are not available on acceptable terms, AbbVie may be unable to fund its expansion, successfully develop or enhance products, or respond to competitive pressures, any of which could negatively affect AbbVie's business.
If AbbVie 2025 Form 10-K | 22 loses its investment grade credit rating or adequate funds are not available on acceptable terms, AbbVie may be unable to fund its expansion, successfully develop or enhance products, or respond to competitive pressures, any of which could negatively affect AbbVie's business.
Any of these events could disrupt AbbVie's business and have a material adverse effect on its business and results of operations. Laws and regulations affecting government benefit programs could impose new obligations on AbbVie, require it to change its business practices, and restrict its operations.
Any of these events could disrupt AbbVie's business and have a material adverse effect on its business and results of operations. 2025 Form 10-K | 20 Laws and regulations affecting government benefit programs could impose new obligations on AbbVie, require it to change its business practices, and restrict its operations.
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.
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. Additionally, AbbVie utilizes AI and other emerging technologies in select applications to support its operations.
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.
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 2025 Form 10-K | 18 among certain pharmaceutical and biotechnology companies can enhance such advantages.
For example, AbbVie may voluntarily provide or be required to provide updated information on a product's label or narrow its approved indication, either of which could reduce the product's market acceptance.
For example, AbbVie may voluntarily provide or be required to provide updated 19 | 2025 Form 10-K information on a product's label or narrow its approved indication, either of which could reduce the product's market acceptance.
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.
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.
However, these provisions apply even if the offer may be considered beneficial by some stockholders and could delay or prevent an acquisition that AbbVie's board of directors determines is not in the best interests of AbbVie and AbbVie's stockholders.
These provisions are not intended to make the company immune from takeovers. However, these provisions apply even if the offer may be considered beneficial by some stockholders and could delay or prevent an acquisition that AbbVie's board of directors determines is not in the best interests of AbbVie and AbbVie's stockholders.
The full impact of the IRA on AbbVie’s business and the pharmaceutical industry, including the implications to us of our or a competitor's product being selected for price setting, remains uncertain. AbbVie continues to evaluate the impact that the IRA may have on the company.
The full impact of the IRA on AbbVie’s business and the pharmaceutical industry, including the implications to us of our or a competitor's product being selected for price setting, remains uncertain.
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.
As of December 31, 2025, the carrying value of AbbVie’s developed product rights and other intangible assets was $52.6 billion and the carrying value of AbbVie’s goodwill was $35.6 billion. AbbVie’s developed product rights are stated at cost, less accumulated amortization.
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.
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.
Risks Related to AbbVie's Common Stock AbbVie cannot guarantee the timing, amount, or payment of dividends on its common stock or the repurchase of its common stock. Although AbbVie expects to pay regular cash dividends, the timing, declaration, amount and payment of future dividends to stockholders will fall within the discretion of AbbVie's board of directors.
Although AbbVie expects to pay regular cash dividends, the timing, declaration, amount and payment of future dividends to stockholders will fall within the discretion of AbbVie's board of directors.
Under the IRA, the U.S Department of Health and Human Services can effectively set prices for certain single-source drugs and biologics reimbursed under Medicare Part B and Part D.
Under the IRA, HHS can effectively set prices for certain single-source drugs and biologics reimbursed under Medicare Part B and Part D.
The potential for continuing changes to the health care system in the United States and the increased purchasing power of entities that negotiate on behalf of Medicare, Medicaid and private sector beneficiaries may result in additional pricing pressures.
The potential for continuing changes to the health care system in the United States and the increased purchasing power of entities that negotiate on behalf of Medicare, Medicaid and private sector beneficiaries, including pharmacy benefit managers (PBMs) and managed care organizations may result in additional pricing pressures and formulary restrictions that limit patient access to our products.
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.
In August 2023, HHS, through CMS, 2025 Form 10-K | 16 selected Imbruvica as one of 10 medicines subject to government-set prices in Medicare Part D beginning January 1, 2026, and in January 2025, selected Vraylar and Linzess as two of 15 medicines subject to government-set prices in Medicare Part D beginning January 1, 2027.
Failure to do so would have a material adverse effect on AbbVie's revenue and profitability. Accordingly, AbbVie commits substantial effort, funds and other resources to research and development and must make ongoing substantial expenditures without any assurance that its efforts will be commercially successful.
Accordingly, AbbVie commits substantial effort, funds and other resources to research and development and must make ongoing substantial expenditures without any assurance that its efforts will be commercially successful.
In addition, Section 203 of the Delaware General Corporation Law provides that, subject to limited exceptions, persons that acquire, or are affiliated with a person that acquires, more than 15% of the outstanding voting stock of a Delaware corporation shall not engage in any business combination with that corporation, including by merger, consolidation or acquisitions of additional shares, for a three-year period following the date on which that person or its affiliates becomes the holder of more than 15% of the corporation's outstanding voting stock.
In addition, Section 203 of the Delaware General Corporation Law provides that, subject to limited exceptions, persons that acquire, or are affiliated with a person that acquires, more than 15% of the outstanding voting stock of a Delaware corporation shall not engage in any business combination with that corporation, including by merger, consolidation or acquisitions of additional shares, for a three-year period following the date on which that person or its affiliates becomes the holder of more than 15% of the corporation's outstanding voting stock. 25 | 2025 Form 10-K AbbVie believes these provisions protect its stockholders from coercive or otherwise unfair takeover tactics by requiring potential acquirors to negotiate with AbbVie's board of directors and by providing AbbVie's board of directors with more time to assess any acquisition proposal.
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.
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.
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.
In January 2026, Botox was selected as one of 15 medicines subject to government-set prices in Medicare Parts B and D beginning January 1, 2028. 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.
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 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.
To the extent AbbVie's intellectual property is successfully challenged, circumvented or weakened, or to the extent such intellectual property does not allow AbbVie to compete effectively, AbbVie's business will suffer. To the extent that countries do not enforce AbbVie's intellectual property rights or require compulsory licensing of AbbVie's intellectual property, AbbVie's revenues and operating earnings will be reduced.
To the extent AbbVie's intellectual property is successfully challenged, circumvented or weakened, or to the extent such intellectual property does not allow AbbVie to compete effectively, AbbVie's business will suffer.
In addition, in its pursuit of valid business opportunities, AbbVie may be required to challenge intellectual property rights held by others that it believes were improperly granted. Resolving an intellectual property infringement or other claim can be costly and time consuming and may require AbbVie to enter into license agreements.
Third parties may claim that an AbbVie product infringes upon their intellectual property. In addition, in its pursuit of valid business opportunities, AbbVie may be required to challenge intellectual property rights held by others that it believes were improperly granted.
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.
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.
Such awards will have a dilutive effect on AbbVie's earnings per share, which could adversely affect the market price of AbbVie's common stock.
Such awards will have a dilutive effect on AbbVie's earnings per share, which could adversely affect the market price of AbbVie's common stock. From time to time, AbbVie will issue additional options or other stock-based awards to its employees under AbbVie's employee benefits plans.
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.
Specifically, Skyrizi and Rinvoq each represented greater than 10% of AbbVie's total net revenues and, in aggregate, these products accounted for approximately 42% of total net revenues in 2025.
To remain competitive, AbbVie must continue to launch new products and new indications and/or brand extensions for existing products. Such launches must generate revenue sufficient both to cover its substantial research and development costs and to replace revenues of profitable products that are lost to or displaced by competing products or therapies.
Such launches must generate revenue sufficient both to cover its substantial research and development costs and to replace revenues of profitable products that are lost to or displaced by competing products or therapies. Failure to do so would have a material adverse effect on AbbVie's revenue and profitability.
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.
Failure to successfully discover, develop, manufacture and sell biologics—including Skyrizi, Botox, Humira and Creon —could have a negative impact on AbbVie's business and results of operations. Trade restrictions, tariffs, and other changes in global trade policy could increase costs, disrupt supply chains, and adversely affect AbbVie’s business and 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 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.
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.
Various factors, including market factors, consolidation among PBMs and the ability of private payers to control patient access to products, including through formulary management and utilization controls, may provide payers the leverage to negotiate higher or additional rebates or discounts that could have a material adverse effect on AbbVie's operations.
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.
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 cannot guarantee that it would be able to obtain license agreements on commercially reasonable terms. A successful claim of patent or other intellectual property infringement could subject AbbVie to significant damages or an injunction preventing the manufacture, sale, or use of the affected AbbVie product or products.
A successful claim of patent or other intellectual property infringement could subject AbbVie to significant damages or an injunction preventing the manufacture, sale, or use of the affected AbbVie product or products. Any of these events could have a material adverse effect on AbbVie's profitability and financial condition.
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.
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. The healthcare and biopharmaceutical industries remain targets of cybersecurity threats due to the value and sensitivity of the data they hold.
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.
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.
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.
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. To remain competitive, AbbVie must continue to launch new products and new indications and/or brand extensions for existing products.
In particular, many European countries have ongoing government-mandated price reductions for many pharmaceutical products, and AbbVie anticipates continuing pricing pressures in Europe. Differences between countries' pricing regulations could lead to third-party cross-border trading in AbbVie's products that results in a reduction in revenues and operating earnings.
Differences between countries' pricing regulations could lead to third-party cross-border trading in AbbVie's products that results in a reduction in revenues and operating earnings. Rebates related to government programs, such as fee-for-service Medicaid or Medicaid managed care programs, arise from laws and regulations.
A third party's intellectual property may prevent AbbVie from selling its products or have a material adverse effect on AbbVie's profitability and financial condition. Third parties may claim that an AbbVie product infringes upon their intellectual property.
To the extent that countries do not enforce AbbVie's intellectual property rights or require compulsory licensing of AbbVie's intellectual property, AbbVie's revenues and operating earnings will be reduced. 15 | 2025 Form 10-K A third party's intellectual property may prevent AbbVie from selling its products or have a material adverse effect on AbbVie's profitability and financial condition.
In major markets worldwide, governments play a significant role in funding health care services and determining the pricing and reimbursement of pharmaceutical products. Consequently, in those markets, AbbVie is subject to government decision-making and budgetary actions with respect to its products.
Consequently, in those markets, AbbVie is subject to government decision-making and budgetary actions with respect to its products. In particular, many European countries have ongoing government-mandated price reductions for many pharmaceutical products, and AbbVie anticipates continuing pricing pressures in Europe.
Removed
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.
Added
Resolving an intellectual property infringement or other claim can be costly and time consuming and may require AbbVie to enter into license agreements. AbbVie cannot guarantee that it would be able to obtain license agreements on commercially reasonable terms.
Removed
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.
Added
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.
Removed
Other rebate and discount programs arise from contractual agreements with private payers.
Added
In addition to the pricing mechanisms established under the IRA, governments and other payers may pursue or implement additional approaches intended to reduce pharmaceutical costs, including arrangements or frameworks that reference international prices, most-favored-nation (MFN) concepts, or other comparative pricing methodologies.
Removed
AbbVie is subject to governmental regulations, and it can be costly to comply with these regulations and to develop compliant products and processes.
Added
Such approaches may be implemented through legislation, regulation, administrative action, negotiated arrangements, or other means, and their scope, structure, and application may continue to evolve.
Removed
AbbVie believes these provisions protect its stockholders from coercive or otherwise unfair takeover tactics by requiring potential acquirors to negotiate with AbbVie's board of directors and by providing AbbVie's board of directors with more time to assess any acquisition proposal. These provisions are not intended to make the company immune from takeovers.
Added
In January 2026, AbbVie entered into a voluntary agreement with the United States government to provide certain pricing concessions and U.S.-based research and development and capital investments in exchange for exemptions from tariffs and future pricing mandates during the three-year agreement period.
Added
In addition, our pricing concessions and expansion of direct-to-patient offerings may subject AbbVie to new pricing or reimbursement policies that could affect our commercial performance.
Added
Where pricing arrangements incorporate MFN, reference pricing, or similar concepts, AbbVie’s realized pricing, revenues, or commercial flexibility could be affected by factors outside of AbbVie’s control, including changes in applicable policies, methodologies, guidance, or related pricing regimes, as well as interactions with other governmental or private-sector pricing and reimbursement programs.
Added
Such arrangements could also influence pricing expectations or negotiations in other markets or with other payers. AbbVie continues to evaluate the impact that pricing and cost-containment related policy developments may have on the company.
Added
For further discussion of PBM formulary practices and their impact on pricing and patient access, see "Pharmacy benefit managers and other supply chain intermediaries exert significant influence over pricing and patient access to our products" below. In major markets worldwide, governments play a significant role in funding health care services and determining the pricing and reimbursement of pharmaceutical products.
Added
Pharmacy benefit managers and other supply chain intermediaries exert significant influence over pricing and patient access to our products, which could adversely affect our revenues and results of operations. Consolidation and vertical integration among PBMs, managed care organizations and other supply chain intermediaries has increased their purchasing power and ability to influence formulary placement and reimbursement levels.
Added
A limited number of these entities negotiate pricing, rebates and patient access terms on behalf of health plans and government programs that cover a significant portion of insured patients in the United States. 17 | 2025 Form 10-K These entities employ formulary management and utilization tools, including formulary exclusions, step therapy requirements, prior authorization protocols and tiered placement decisions, that could limit or delay patient access to our products, potentially increase patient cost-sharing and/or shift utilization to competing therapies.
Added
Unfavorable formulary decisions and increased utilization management restrictions could reduce prescription volumes and adversely affect our revenues. Further changes in formulary placement or access restrictions implemented by these intermediaries could occur with limited advance notice and may be difficult to predict or mitigate.
Added
PBM business practices, rebate structures and pricing arrangements are also subject to change as a result of enforcement actions, regulatory settlements, legislation or other government actions. Government-mandated changes to PBM rebate methodologies, formulary design or pricing transparency practices could affect our contractual arrangements with PBMs, alter manufacturer-PBM economic relationships or shift costs to manufacturers.
Added
Additionally, these entities may negotiate higher or additional rebates, discounts, administrative fees or other price concessions that could adversely affect our revenues and results of operations. 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.
Added
AbbVie operates in a global environment and relies on complex international supply chains for the development, manufacture, and distribution of its products, including the sourcing of active pharmaceutical ingredients and key materials.
Added
Changes in global trade policy, including the potential imposition of import or export tariffs, trade restrictions, or other measures affecting pharmaceutical products or related inputs, could increase manufacturing and procurement costs, reduce margins or disrupt supply continuity.
Added
If AbbVie is unable to substantially mitigate or offset increased costs or disruptions resulting from such measures through pricing adjustments, operational changes, or alternative sourcing arrangements, it may have an adverse effect 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.
Added
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
The 340B Drug Pricing Program requires participating manufacturers to offer discounts to covered entities and growth in entities claiming entitlement to 340B pricing has increased the portion of our sales subject to such discounts. Manufacturer policies designed to improve program integrity have been subject to enforcement actions and legal challenges under federal and state laws.
Added
Adverse outcomes in 340B-related litigation or significant changes to our 340B approach could adversely affect our revenues and results of operations.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

4 edited+0 added−0 removed21 unchanged
Biggest changeOur 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
Biggest changeOur Chief Information Security Officer and other senior information technology executives also provide similar topical updates to the full board of directors at least annually. 2025 Form 10-K | 28
We rely in part on third parties (including assessors, consultants, advisors and others) in connection with our processes for assessing, identifying, managing and reducing cyber risks. In addition, we have implemented a cybersecurity awareness program designed to educate and train our entire employee network on how to identify and report cybersecurity threats.
We rely in part on third parties (including assessors, consultants, advisors and others) in connection with our processes for assessing, identifying, managing and reducing cyber risks. In addition, we have implemented a cybersecurity awareness program designed to educate and train our entire workforce on how to identify and report cybersecurity threats.
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 also contractually require third-party 27 | 2025 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.
As of December 31, 2024, cybersecurity risks have not materially affected our business, strategy, results of operations, or financial condition.
As of December 31, 2025, cybersecurity risks have not materially affected our business, strategy, results of operations, or financial condition.

Item 2. Properties

Properties — owned and leased real estate

4 edited+1 added−0 removed0 unchanged
Biggest changeAbbVie 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.
Biggest changeAbbVie also has research and development sites in the United States located at: Abbott Park, Illinois; Branchburg, New Jersey; Cambridge, Massachusetts; Irvine, California; Madison, New Jersey; Madison, Wisconsin; North Chicago, Illinois; Pleasanton, California; San Diego, California; South San Francisco, California; Waltham, Massachusetts, and Worcester, Massachusetts.
AbbVie'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's significant manufacturing sites 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 believes its facilities are suitable and provide adequate production capacity for its current and projected operations. There are no material encumbrances on AbbVie's owned properties. AbbVie distributes products through a network of central and regional distribution centers, with its central distribution centers located in the U.S. and Europe.
AbbVie believes its sites are suitable and provide adequate production capacity for its current and projected operations. There are no material encumbrances on AbbVie's owned properties. AbbVie distributes products through a network of central and regional distribution centers, with its central distribution centers located in the U.S. and Europe.
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 2. PROPERTIES AbbVie's corporate offices are located at 1 North Waukegan Road, North Chicago, Illinois 60064-6400. As of December 31, 2025, AbbVie owns or leases approximately 600 facilities worldwide, containing an aggregate of approximately 19.4 million square feet of floor space dedicated to production, distribution and administration.
Added
Outside the United States, AbbVie's principal research and development facilities are located in Ludwigshafen, Germany and Oxford, United Kingdom.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

15 edited+4 added−8 removed3 unchanged
Biggest changeSaleki-Gerhardt served as Abbott’s Vice President, Pharmaceuticals Manufacturing and Supply from 2011 to 2012, and as Divisional Vice President, Quality Assurance, Global Pharmaceutical Operations from 2008 to 2011. Dr. Saleki-Gerhardt joined Abbott in 1993 and was first appointed as an AbbVie corporate officer in December 2012. She serves on the board of Entegris Inc. Mr.
Biggest changeSaleki-Gerhardt joined Abbott in 1993 and was first appointed as an AbbVie corporate officer in December 2012. She serves on the board of Entegris Inc. Mr. Siatis is AbbVie’s Executive Vice President, General Counsel and Secretary. He previously served as Senior Vice President, Deputy General Counsel from September 2021 until October 2022. From 2013 until 2021, Mr.
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.
Michael previously served as Chief Executive Officer starting in 2024 and 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 has previously served as AbbVie’s Senior Vice President, Chief Operating Officer, R&D from 2022 to 2023, as Senior Vice President, Portfolio Innovation from 2021 to 2022, as Senior Vice President, Global Strategy and Operations, Allergan Aesthetics, from 2020 to 2021, and as Senior Vice President, Enterprise Innovation from 2019 to 2020.
He previously served as AbbVie’s Senior Vice President, Chief Operating Officer, R&D from 2022 to 2023, as Senior Vice President, Portfolio Innovation from 2021 to 2022, as Senior Vice President, Global Strategy and Operations, Allergan Aesthetics, from 2020 to 2021, and as Senior Vice President, Enterprise Innovation from 2019 to 2020. Dr.
There are no family relationships between any of the executive officers listed above. 29 | 2024 Form 10-K PART II
There are no family relationships between any of the executive officers listed above. 31 | 2025 Form 10-K PART II
Siatis also served in various roles including as Senior Vice President, Legal and Chief Ethics and Compliance Officer; Senior Vice President of Legal Transactions and R&D/Alliance Management and Chief Ethics and Compliance Officer; and Vice President, Biologic Strategic Development and Legal Regulatory. Mr. Siatis joined Abbott in 2005 and was first appointed as an AbbVie corporate officer in October 2022.
Siatis also served in various roles including as Senior Vice President, Legal and Chief Ethics and Compliance Officer, as Senior Vice President of Legal Transactions and R&D/Alliance Management and Chief Ethics and Compliance Officer, and as Vice President, Biologic Strategic Development and Legal Regulatory. 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.
Prior to AbbVie’s separation from Abbott, he served as Vice President, Abbott Proprietary Pharmaceutical Division, United States. 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.
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.
ITEM 4. MINE SAFETY DISCLOSURES Not applicable. 29 | 2025 Form 10-K INFORMATION ABOUT OUR EXECUTIVE OFFICERS Name Age Position Robert A. Michael 55 Chairman of the Board and Chief Executive Officer Scott T. Reents 58 Executive Vice President, Chief Financial Officer Demetris D. Crum 45 Executive Vice President, Chief Human Resources Officer Nicholas J.
Prior to joining AbbVie in 2019, he served as a Partner at McKinsey & Company where he was a leader of the firm's Pharma and Biotechnology practice for over a decade. Mr. Richmond is AbbVie’s Executive Vice President, Chief Human Resources Officer. He served as Senior Vice President, Human Resources from 2013 to 2018. Mr.
Donoghoe was first appointed as an AbbVie corporate officer in January 2019 when he joined AbbVie. Prior to joining AbbVie, he served as a Partner at McKinsey & Company where he was a leader of the firm's Pharma and Biotechnology practice for over a decade. Dr. Saleki-Gerhardt is AbbVie’s Executive Vice President, Chief Operations Officer.
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.
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. Mr.
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.
Michael joined Abbott in 1993 and was first appointed as an AbbVie corporate officer in March 2017. Mr. Reents is AbbVie’s Executive Vice President, Chief Financial Officer.
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.
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.
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.
Donoghoe, M.D. 45 Executive Vice President, Chief Business and Strategy Officer Azita Saleki-Gerhardt, Ph.D. 62 Executive Vice President, Chief Operations Officer Perry C. Siatis 51 Executive Vice President, General Counsel and Secretary Jeffrey R. Stewart 57 Executive Vice President, Chief Commercial Officer Roopal Thakkar, M.D. 54 Executive Vice President, Research & Development and Chief Scientific Officer David R.
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.
Siatis joined Abbott in 2005 and was first appointed as an AbbVie corporate officer in October 2022. Mr. Stewart is AbbVie’s Executive Vice President, Chief Commercial Officer. He previously served as Senior Vice President, U.S. Commercial Operations from 2018 to 2020 and as AbbVie’s President, U.S. Commercial Operations from 2013 2025 Form 10-K | 30 to 2018.
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 an AbbVie corporate officer in December 2023. Mr. Purdue is AbbVie’s Senior Vice President, Controller.
Michael is AbbVie’s Chief Executive Officer, a position he has held since July 2024, and serves on its Board of Directors. Mr.
Purdue 48 Senior Vice President, Controller _______________________________________________________________________________ Mr. Michael is AbbVie’s Chairman and Chief Executive Officer, a position he has held since July 2025. Mr.
Removed
Stewart 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.
Added
Crum is AbbVie’s Executive Vice President, Chief Human Resources Officer. He previously served as Vice President, Total Rewards from August 2022 to June 2025, as Vice President, Compensation from January 2022 to August 2022, and as Vice President, Business Human Resources for corporate staff functions from August 2020 to January 2022. Mr.
Removed
He served as Abbott’s Executive Vice President of the pharmaceutical products group from July 2010 to December 2012, and was responsible for Abbott’s worldwide pharmaceutical business, including commercial operations, research and development, and manufacturing. He also served as President, Abbott Ventures Inc., Abbott’s medical technology investment arm, from 2009 to 2011. Mr.
Added
Crum joined AbbVie in 2017 and was first appointed as an AbbVie corporate officer in July 2025. Prior to joining AbbVie, Mr. Crum held several human resources leadership roles at The Kraft Heinz Company and PepsiCo. Dr. Donoghoe is AbbVie’s Executive Vice President, Chief Business and Strategy Officer.
Removed
Gonzalez joined Abbott in 1977 and held various management positions before briefly retiring in 2007, including: Abbott’s President and Chief Operating Officer; President, Chief Operating Officer of Abbott’s Medical Products Group; Senior Vice President and President of Abbott’s former Hospital Products Division; Vice President and President of Abbott’s Health Systems Division; and Divisional Vice President and General Manager for Abbott’s Diagnostics Operations in the United States and Canada.
Added
She previously served as Executive Vice President, Operations from 2018 to July 2023, and as Senior Vice President, Operations from 2013 to 2018. Dr. Saleki-Gerhardt served as Abbott’s Vice President, Pharmaceuticals Manufacturing and Supply from 2011 to 2012, and as Divisional Vice President, Quality Assurance, Global Pharmaceutical Operations from 2008 to 2011. Dr.
Removed
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.
Added
He previously served as AbbVie’s Vice President, Controller, Commercial Operations from 2023 to 2025, Vice President, Corporate Treasurer from 2022 to 2023, Vice President, Corporate Financial Planning and Analysis from 2020 to 2022, and Vice President, Allergan Integration from 2019 to 2020. Mr. Purdue joined Abbott in 2003 and was first appointed as an AbbVie corporate officer in March 2025.
Removed
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.
Removed
Richmond served as Abbott’s Divisional Vice President of Compensation & Benefits from 2008 to 2012, as Group Vice President of Talent and Rewards from 2007 to 2008 and as Divisional Vice President of Talent Acquisition from 2006 to 2007. Mr.
Removed
Siatis is AbbVie’s Executive Vice President, General Counsel and Secretary. Mr. Siatis previously served as Senior Vice President, Deputy General Counsel from September 2021 until October 2022. From 2013 until 2021, Mr.
Removed
Mr. Stewart is AbbVie’s Executive Vice President, Chief Commercial Officer. He previously served as Senior Vice President, U.S. Commercial Operations from 2018 to 2020 and as AbbVie’s President, Commercial Operations from 2013 to 2018. Prior to AbbVie’s separation from Abbott, he served as Vice President, Abbott Proprietary Pharmaceutical Division, United States. Mr.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

7 edited+0 added−0 removed2 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, 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.
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, 2025 - October 31, 2025 861 (1) $ 228.89 (1) — $ 2,896,110,760 November 1, 2025 - November 30, 2025 691 (1) $ 217.83 (1) — $ 2,896,110,760 December 1, 2025 - December 31, 2025 24,742 (1) $ 224.39 (1) — $ 2,896,110,760 Total 26,294 (1) $ 224.36 (1) — $ 2,896,110,760 1.
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.
This graph assumes $100 was invested in AbbVie common stock and each index on December 31, 2020 and also assumes the reinvestment of dividends. The stock price performance on the following graph is not necessarily indicative of future stock price performance.
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Principal Market The principal market for AbbVie's common stock is the New York Stock Exchange (Symbol: ABBV). AbbVie's common stock is also listed on the Chicago Stock Exchange and traded on various regional and electronic exchanges.
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Principal Market The principal market for AbbVie's common stock is the New York Stock Exchange (Symbol: ABBV). AbbVie's common stock is also listed on the NYSE Texas and traded on various regional and electronic exchanges.
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
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.
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.
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. 2025 Form 10-K | 32 Dividends On October 31, 2025, AbbVie announced that its board of directors declared an increase in the company’s quarterly dividend from $1.64 per share to $1.73 per share, payable on February 17, 2026, to stockholders of record as of January 16, 2026.
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.
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 – 861 in October; 691 in November; and 24,742 in December.
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.
Stockholders There were 58,040 stockholders of record of AbbVie common stock as of February 10, 2026. 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, 2020 through December 31, 2025.

Item 7. Management's Discussion & Analysis

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

81 edited+42 added−41 removed43 unchanged
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.
Biggest changePercent change At actual currency rates At constant currency rates years ended (dollars in millions) 2025 2024 2023 2025 2024 2025 2024 United States $ 46,603 $ 43,029 $ 41,883 8.3 % 2.7 % 8.3 % 2.7 % International 14,557 13,305 12,435 9.4 % 7.0 % 9.2 % 11.1 % Net revenues $ 61,160 $ 56,334 $ 54,318 8.6 % 3.7 % 8.5 % 4.6 % 39 | 2025 Form 10-K 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) 2025 2024 2023 2025 2024 2025 2024 Immunology Skyrizi United States $ 15,202 $ 10,086 $ 6,753 50.7 % 49.3 % 50.7 % 49.3 % International 2,360 1,632 1,010 44.6 % 61.6 % 43.0 % 65.4 % Total $ 17,562 $ 11,718 $ 7,763 49.9 % 50.9 % 49.7 % 51.4 % Rinvoq United States $ 5,940 $ 4,259 $ 2,824 39.5 % 50.8 % 39.5 % 50.8 % International 2,364 1,712 1,145 38.0 % 49.6 % 37.1 % 57.0 % Total $ 8,304 $ 5,971 $ 3,969 39.1 % 50.4 % 38.8 % 52.5 % Humira United States $ 3,062 $ 7,142 $ 12,160 (57.1) % (41.3) % (57.1) % (41.3) % International 1,478 1,851 2,244 (20.2) % (17.5) % (19.5) % (13.2) % Total $ 4,540 $ 8,993 $ 14,404 (49.5) % (37.6) % (49.4) % (36.9) % Neuroscience Vraylar United States $ 3,612 $ 3,260 $ 2,755 10.8 % 18.4 % 10.8 % 18.4 % International 9 7 4 33.3 % 57.8 % 36.8 % 58.6 % Total $ 3,621 $ 3,267 $ 2,759 10.8 % 18.4 % 10.8 % 18.4 % Botox Therapeutic United States $ 3,151 $ 2,718 $ 2,476 16.0 % 9.8 % 16.0 % 9.8 % International 618 565 515 9.3 % 9.8 % 9.9 % 14.0 % Total $ 3,769 $ 3,283 $ 2,991 14.8 % 9.8 % 14.9 % 10.5 % Ubrelvy United States $ 1,239 $ 981 $ 803 26.3 % 22.1 % 26.3 % 22.1 % International 32 25 12 28.6 % >100.0 % 30.7 % >100.0 % Total $ 1,271 $ 1,006 $ 815 26.4 % 23.4 % 26.5 % 23.4 % Qulipta United States $ 906 $ 628 $ 405 44.1 % 55.3 % 44.1 % 55.3 % International 130 30 3 >100.0 % >100.0 % >100.0 % >100.0 % Total $ 1,036 $ 658 $ 408 57.3 % 61.3 % 56.8 % 61.3 % Vyalev United States $ 167 $ 1 $ — >100.0 % n/m >100.0 % n/m International 315 98 3 >100.0 % >100% >100.0 % >100% Total $ 482 $ 99 $ 3 >100.0 % >100% >100.0 % >100% Duodopa United States $ 73 $ 96 $ 97 (23.7) % (1.8) % (23.7) % (1.8) % International 308 351 371 (12.3) % (5.3) % (14.1) % (5.4) % Total $ 381 $ 447 $ 468 (14.8) % (4.6) % (16.2) % (4.7) % Other Neuroscience United States $ 192 $ 223 $ 254 (13.9) % (12.1) % (13.9) % (12.1) % International 15 16 19 (0.4) % (18.9) % 2.8 % (18.3) % Total $ 207 $ 239 $ 273 (13.0) % (12.5) % (12.8) % (12.5) % Oncology Imbruvica United States $ 2,048 $ 2,448 $ 2,665 (16.4) % (8.1) % (16.4) % (8.1) % Collaboration revenues 821 899 931 (8.6) % (3.5) % (8.6) % (3.5) % Total $ 2,869 $ 3,347 $ 3,596 (14.3) % (6.9) % (14.3) % (6.9) % Venclexta United States $ 1,306 $ 1,234 $ 1,087 5.9 % 13.5 % 5.9 % 13.5 % International 1,486 1,349 1,201 10.2 % 12.3 % 9.8 % 18.0 % Total $ 2,792 $ 2,583 $ 2,288 8.1 % 12.9 % 7.9 % 15.9 % Elahere United States $ 607 $ 477 $ — 27.2 % n/m 27.2 % n/m International 83 2 — >100.0 % n/m >100.0 % n/m Total $ 690 $ 479 $ — 44.0 % n/m 43.4 % n/m Epkinly Collaboration revenues $ 181 $ 118 $ 28 52.9 % >100.0 % 52.9 % >100.0 % International 90 28 3 >100.0 % >100.0 % >100.0 % >100.0 % Total $ 271 $ 146 $ 31 85.5 % >100.0 % 85.0 % >100.0 % Other Oncology United States $ 33 $ — $ — n/m n/m n/m n/m Aesthetics Botox Cosmetic United States $ 1,504 $ 1,682 $ 1,670 (10.5) % 0.7 % (10.5) % 0.7 % International 1,098 1,038 1,012 5.7 % 2.7 % 6.2 % 6.7 % Total $ 2,602 $ 2,720 $ 2,682 (4.3) % 1.4 % (4.1) % 2.9 % Juvederm Collection United States $ 385 $ 469 $ 519 (18.0) % (9.6) % (18.0) % (9.6) % International 608 708 859 (14.1) % (17.6) % (13.6) % (13.4) % Total $ 993 $ 1,177 $ 1,378 (15.6) % (14.6) % (15.3) % (12.0) % 2025 Form 10-K | 40 Other Aesthetics United States $ 1,101 $ 1,118 $ 1,060 (1.5) % 5.5 % (1.5) % 5.5 % International 164 161 174 1.8 % (7.1) % 2.7 % (1.0) % Total $ 1,265 $ 1,279 $ 1,234 (1.1) % 3.7 % (1.0) % 4.6 % Eye Care Ozurdex United States $ 124 $ 138 $ 143 (10.1) % (4.1) % (10.1) % (4.1) % International 369 356 329 3.7 % 8.3 % 3.0 % 10.7 % Total $ 493 $ 494 $ 472 (0.2) % 4.5 % (0.7) % 6.2 % Lumigan/Ganfort United States $ 189 $ 187 $ 173 1.2 % 7.5 % 1.2 % 7.5 % International 221 242 259 (8.7) % (6.4) % (8.3) % (3.9) % Total $ 410 $ 429 $ 432 (4.4) % (0.9) % (4.2) % 0.6 % Alphagan/Combigan United States $ 53 $ 95 $ 121 (43.3) % (21.8) % (43.3) % (21.8) % International 144 153 151 (6.3) % 1.5 % (4.6) % 7.6 % Total $ 197 $ 248 $ 272 (20.4) % (8.8) % (19.4) % (5.4) % Other Eye Care United States $ 588 $ 644 $ 815 (8.7) % (21.1) % (8.7) % (21.1) % International 421 427 424 (1.4) % 0.9 % 0.5 % 5.6 % Total $ 1,009 $ 1,071 $ 1,239 (5.8) % (13.6) % (5.0) % (12.0) % Other Key Products Mavyret United States $ 635 $ 595 $ 659 6.7 % (9.7) % 6.7 % (9.7) % International 682 716 771 (4.7) % (7.2) % (5.7) % (4.5) % Total $ 1,317 $ 1,311 $ 1,430 0.4 % (8.3) % (0.2) % (6.9) % Creon United States $ 1,512 $ 1,383 $ 1,268 9.3 % 9.1 % 9.3 % 9.1 % Linzess/Constella United States $ 864 $ 916 $ 1,073 (5.7) % (14.6) % (5.7) % (14.6) % International 43 38 35 13.6 % 7.5 % 13.3 % 7.2 % Total $ 907 $ 954 $ 1,108 (4.9) % (13.9) % (4.9) % (13.9) % All other $ 2,627 $ 3,032 $ 3,035 (13.3) % — % (12.8) % 1.4 % Total net revenues $ 61,160 $ 56,334 $ 54,318 8.6 % 3.7 % 8.5 % 4.6 % n/m – Not meaningful The following discussion and analysis of AbbVie's net revenues by product is presented on a constant currency basis.
Regulation The Inflation Reduction Act of 2022 has and will continue to have a significant impact on how drugs are covered and paid for under the Medicare program, including through the creation of financial penalties for drugs whose price increases outpace inflation, the redesign of Medicare Part D benefits to shift a greater portion of the costs to manufacturers, and through government price-setting for certain Medicare Part B and Part D drugs.
The Inflation Reduction Act of 2022 has and will continue to have a significant impact on how drugs are covered and paid for under the Medicare program, including through the creation of financial penalties for drugs whose price increases outpace inflation, the redesign of Medicare Part D benefits to shift a greater portion of the costs to manufacturers, and through government price-setting for certain Medicare Part B and Part D drugs.
AbbVie reviews the recoverability of definite-lived intangible assets whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. Goodwill and indefinite-lived intangible assets are reviewed for impairment annually or when an event occurs that could result in an impairment. See Note 2 to the Consolidated Financial Statements for additional information.
AbbVie reviews the recoverability of definite-lived intangible assets whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. Goodwill and indefinite-lived intangible assets are reviewed for impairment annually or when an event occurs that could result in an impairment. See Note 2 and Note 7 to the Consolidated Financial Statements for additional information.
IPR&D acquired in transactions that are not business combinations is expensed immediately, unless deemed to have an alternative future use. Payments made to third parties subsequent to regulatory approval are capitalized and amortized over the remaining useful life.
IPR&D acquired in transactions that are not business combinations is expensed immediately, unless deemed to have an alternative future use. Milestone payments made to third parties subsequent to regulatory approval are capitalized and amortized over the remaining useful life.
EXECUTIVE OVERVIEW Company Overview AbbVie is a global, diversified research-based biopharmaceutical company positioned for success with a comprehensive product portfolio that has leadership positions across immunology, oncology, aesthetics, neuroscience and eye care. AbbVie uses its expertise, dedicated people and unique approach to innovation to develop and market advanced therapies that address some of the world’s most complex and serious diseases.
EXECUTIVE OVERVIEW Company Overview AbbVie is a global, diversified research-based biopharmaceutical company positioned for success with a comprehensive product portfolio that has leadership positions across immunology, neuroscience, oncology and aesthetics. AbbVie uses its expertise, dedicated people and unique approach to innovation to develop and market advanced therapies that address some of the world’s most complex and serious diseases.
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.
The effective income tax rates in 2025, 2024 and 2023 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.
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.
Discussions of 2023 items and year-to-year comparisons between 2024 and 2023 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, 2024.
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.
Investing cash flows in 2024 included $18.5 billion cash consideration paid to acquire ImmunoGen, Inc. (ImmunoGen) and Cerevel Therapeutics Holdings, Inc. (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 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.
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, 2025 and will be used in the calculation of net periodic benefit cost in 2026.
In addition, AbbVie anticipates several regulatory submissions and data readouts from key clinical trials in the next 12 months.
In addition, AbbVie anticipates several regulatory submissions, approvals and data readouts from key clinical trials in the next 12 months.
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.
Interest payments on debt are calculated for future periods using forecasted interest rates in effect at the end of 2025. 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, 2024 and will be used in the calculation of net periodic benefit cost in 2025.
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, 2025 and will be used in the calculation of net periodic benefit cost in 2026.
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.
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 2025 and 2024 items and year-to-year comparisons between 2025 and 2024.
Our net earnings and cash flows could be affected by future tax policy and law changes in the jurisdictions in which we operate, including changes in tax law related to the projects undertaken by the Organization for Economic Cooperation and Development (OECD).
The company's net earnings and cash flows could be affected by future tax policy and law changes in the jurisdictions in which we operate, including changes in tax law related to the projects undertaken by the Organization for Economic Cooperation and Development (OECD).
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 assumed discount rates have a significant effect on the amounts reported for defined benefit pension and other post-employment plans as of December 31, 2025.
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.
In-process research and development (IPR&D) acquired in a business combination is capitalized as an 2025 Form 10-K | 48 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.
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.
For the majority of sales, the company transfers control, invoices the customer and recognizes revenue upon shipment to the customer. 2025 Form 10-K | 46 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.
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.
AbbVie reflects 47 | 2025 Form 10-K 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.
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.
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 2026 by $118 million. The health care cost trend rate is selected by reviewing historical trends and current views on projected future health care cost increases.
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
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. 49 | 2025 Form 10-K
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.
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 $2.2 billion in 2025, $2.0 billion in 2024 and $2.0 billion in 2023.
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.
These products are described in greater detail in the section labeled "Research and Development" included as part of this Item 7. 2025 Form 10-K | 34 2025 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.
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.
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 2025.
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.
AbbVie expects to achieve its strategic objectives through: • Maximizing revenue growth of our key on-market products, including Skyrizi, Rinvoq, Vraylar, Botox Therapeutic, Ubrelvy, Qulipta, Vyalev, Venclexta, Elahere, Botox Cosmetic 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. • The favorable impact of pipeline products and indications recently approved or currently under regulatory review where approval is expected in 2026.
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.
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.
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.
The projected interest payments only pertain to obligations and agreements outstanding at December 31, 2025. 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, 2025.
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.
AbbVie repurchased 3 million shares for $606 million in 2025 and 7 million shares for $1.3 billion in 2024. AbbVie's remaining stock repurchase authorization was $2.9 billion as of December 31, 2025. On February 16, 2023, AbbVie's board of directors authorized a $5.0 billion increase to the existing stock repurchase authorization.
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. Provisions for rebates and chargebacks totaled $59.3 billion in 2024, $56.8 billion in 2023 and $41.4 billion in 2022.
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. Provisions for rebates and chargebacks totaled $65.1 billion in 2025, $59.3 billion in 2024 and $56.8 billion in 2023.
AbbVie intends to execute its strategy and advance its mission in a number of ways, including: (i) maximizing the benefits of a diversified revenue base with multiple long-term growth drivers; (ii) leveraging AbbVie's commercial strength and international infrastructure across therapeutic areas and ensuring strong commercial execution of new product launches; (iii) continuing to invest in and expand its pipeline in support of opportunities in immunology, oncology, aesthetics, neuroscience and eye care as well as continued investment in key on-market products; (iv) generating substantial operating cash flows to support investment in innovative research and development, and return cash to shareholders via a strong and growing dividend while also continuing to repay debt.
AbbVie intends to execute its strategy and advance its mission in a number of ways, including: (i) maximizing the benefits of a diversified revenue base with multiple long-term growth drivers; (ii) leveraging AbbVie's commercial strength and international infrastructure across therapeutic areas, ensuring strong commercial execution of new product launches as well as continued investment in key on-market products; (iii) continuing to invest in and expand its pipeline in support of opportunities across our core areas of immunology, neuroscience, oncology and aesthetics as well as new sources of growth such as obesity; (iv) generating substantial operating cash flows to support investments in innovative research and development and returning cash to shareholders via a strong and growing dividend while maintaining a strong investment grade credit rating.
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.
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 2026 and projected benefit obligations as of December 31, 2025: 50 basis point (in millions) (brackets denote a reduction) Increase Decrease Defined benefit plans Net periodic benefit cost $ (22) $ 48 Projected benefit obligation (607) 672 Other post-employment plans Net periodic benefit cost $ (5) $ 6 Projected benefit obligation (47) 52 The expected long-term rate of return is based on the asset allocation, historical performance and the current view of expected future returns.
Income Tax Expense The effective income tax rate was (15%) in 2024, 22% in 2023 and 12% in 2022. The effective income tax rate fluctuates year to year due to the allocation of the company’s taxable earnings among jurisdictions, as well as certain discrete factors and events in each year, including changes in tax law and business development activities.
The effective income tax rate fluctuates year to year due to the allocation of the company’s taxable earnings among jurisdictions, as well as certain discrete factors and events in each year, including changes in tax law and business development activities.
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.
Quarterly Cash Dividend On October 31, 2025, AbbVie announced that its board of directors declared an increase in the company’s quarterly dividend from $1.64 per share to $1.73 per share beginning with the dividend payable on February 17, 2026 to stockholders of record as of January 16, 2026. This reflects an increase of approximately 5.5% over the previous quarterly rate.
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.
Selling, General and Administrative Percent change years ended December 31 (dollars in millions) 2025 2024 2023 2025 2024 Selling, general and administrative $ 14,010 $ 14,752 $ 12,872 (5) % 15 % as a % of net revenues 23 % 26 % 24 % Selling, general and administrative (SG&A) expenses as a percentage of net revenues decreased in 2025 compared to 2024.
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.
Net revenues for Qulipta increased 57% in 2025 primarily driven by continued strong market share uptake as well as market growth. 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.
(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.
(in millions) Medicaid and Medicare Rebates Managed Care Rebates Wholesaler Chargebacks 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 Provisions 21,283 22,307 17,710 Payments (21,250) (22,487) (17,482) Balance as of December 31, 2025 $ 7,440 $ 5,345 $ 1,385 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.
AbbVie's long-term success depends to a great extent on its ability to continue to discover and develop innovative products and acquire or collaborate on compounds currently in development by other biotechnology or pharmaceutical companies.
AbbVie's long-term success depends to a great extent on its ability to continue to discover and develop innovative products and acquire or collaborate on compounds currently in development by other biotechnology or pharmaceutical companies. AbbVie’s pipeline currently includes approximately 90 compounds, devices or indications in development individually or under collaboration or license agreements.
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.
Research and Development Percent change years ended December 31 (dollars in millions) 2025 2024 2023 2025 2024 Research and development $ 9,096 $ 12,791 $ 7,675 (29) % 67 % as a % of net revenues 15 % 23 % 14 % Research and development (R&D) expenses as a percentage of net revenues decreased in 2025 compared to 2024.
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.
Gross Margin Percent change years ended December 31 (dollars in millions) 2025 2024 2023 2025 2024 Gross margin $ 42,956 $ 39,430 $ 33,903 9 % 16 % as a % of net revenues 70 % 70 % 62 % Gross margin as a percentage of net revenues in 2025 was flat compared to 2024.
See Note 5 to the Consolidated Financial Statements for additional information on these collaboration arrangements. CRITICAL ACCOUNTING POLICIES AND ESTIMATES The preparation of financial statements in accordance with generally accepted accounting principles in the United States requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenue and expenses.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES The preparation of financial statements in accordance with generally accepted accounting principles in the United States requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenue and expenses.
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.
The company's financial performance in 2025 included delivering worldwide net revenues of $61.2 billion, operating earnings of $15.1 billion, diluted earnings per share of $2.36 and cash flows from operations of $19.0 billion. Worldwide net revenues increased by 9% on a reported and on a constant currency basis.
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.
In January 2026, Botox was selected as one of 15 medicines subject to government-set prices in Medicare Parts B and D beginning in 2028. 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.
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.
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.
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.
AbbVie establishes an allowance for credit losses equal to the estimate of future losses over the contractual life of outstanding accounts receivable. 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.
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.
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 facilities and would not result in an acceleration of scheduled maturities of any of the company’s outstanding debt.
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.
Certain products are co-marketed or co-promoted with other companies. AbbVie operates as a single global business segment. 2026 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.
During the quarter ended December 31, 2024, the company refinanced its $2.0 billion floating rate three-year term loan. As part of the refinancing, the company repaid the existing $2.0 billion term loan due May 2025 and borrowed $2.0 billion under a new term loan due April 2027.
Additionally, the company refinanced its $2.0 billion floating rate three-year term loan. As part of the refinancing, the company repaid the existing $2.0 billion term loan due May 2025 and borrowed $2.0 billion under a new term loan due April 2027. Financing cash flows also included cash dividend payments of $11.7 billion in 2025 and $11.0 billion in 2024.
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.
Net revenues for Botox Therapeutic increased 15% in 2025 primarily driven by market growth as well as continued market share uptake. Net revenues for Ubrelvy increased 27% in 2025 primarily driven by continued market share uptake as well as market growth.
The fair value of contingent consideration liabilities is impacted by the passage of time and multiple other inputs, including the probability of success of achieving regulatory/commercial milestones, discount rates, the estimated amount of future sales of the acquired products and other market-based factors.
The fair value of contingent consideration liabilities is impacted by the passage of time and multiple other inputs, including discount rates, the estimated amount of future sales of the acquired products and other market-based factors. In 2025, the change in fair value reflected higher estimated Skyrizi sales, the passage of time, lower discount rates and a longer estimated royalty period.
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.
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.
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.
At December 31, 2025, the company was in compliance with all covenants, and commitment fees under the revolving credit facilities were insignificant. No amounts were outstanding under the company's revolving credit facilities as of December 31, 2025 and December 31, 2024. In April 2025, the company entered into a $4.0 billion 364-day term loan credit agreement.
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. On February 12, 2024, AbbVie completed the acquisition of ImmunoGen, Inc. (ImmunoGen).
On February 13, 2025, the board of directors of AbbVie unanimously elected Chief Executive Officer (CEO) Robert A. Michael to succeed Richard A. Gonzalez as Chairman of the board of directors, effective July 1, 2025, at which time Mr. Gonzalez retired from the board.
Net revenues for Qulipta increased 61% in 2024 primarily driven by continued strong market share uptake as well as market growth.
Net revenues for Skyrizi increased 50% in 2025 primarily driven by continued strong market share uptake as well as market growth across all indications. Net revenues for Rinvoq increased 39% in 2025 primarily driven by continued strong market share uptake as well as market growth across all indications.
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.
Other Non-Operating Expenses years ended December 31 (in millions) 2025 2024 2023 Interest expense $ 2,893 $ 2,808 $ 2,224 Interest income (266) (648) (540) Interest expense, net $ 2,627 $ 2,160 $ 1,684 Net foreign exchange loss $ 58 $ 21 $ 146 Other expense, net 5,793 3,240 4,677 Interest expense in 2025 increased compared to 2024 primarily due to the impact of higher effective interest rates.
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.
Net revenues for Humira decreased 49% in 2025 primarily driven by continued impact of direct biosimilar competition following the loss of exclusivity. Net revenues for Vraylar increased 11% in 2025 primarily driven by continued market share uptake as well as market growth.
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.
Internationally, Botox Cosmetic net revenues increased 6% primarily driven by increased consumer demand across certain international markets, partially offset by unfavorable pricing. Net revenues for Juvederm Collection decreased 15% in 2025 primarily driven by decreased consumer demand, partially offset by the timing of customer inventory destocking in the prior year.
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.
Financial results for 2025 also included the following costs: (i) $7.4 billion related to the amortization of intangible assets; (ii) $6.5 billion for the change in fair value of contingent consideration liabilities; (iii) $847 million related to intangible asset impairment; and (iv) $276 million of acquisition and integration expenses.
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.
AbbVie will continue to monitor pending legislation and implementation by individual countries and evaluate the potential impact on the company's business in future periods. 43 | 2025 Form 10-K FINANCIAL POSITION, LIQUIDITY AND CAPITAL RESOURCES years ended December 31 (in millions) 2025 2024 2023 Cash flows provided by (used in) Operating activities $ 19,030 $ 18,806 $ 22,839 Investing activities (6,643) (20,820) (2,009) Financing activities (12,724) (5,211) (17,222) Operating cash flows in 2025 increased compared to the prior year primarily due to increased results from operations driven by higher net revenues, timing of working capital and lower acquisition-related cash expenses, partially offset by higher payments related to litigation matters and higher payments of contingent consideration liabilities.
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.
Interest income in 2025 decreased compared to 2024 primarily due to a lower average cash and equivalents balance. Other expense, net included charges related to changes in fair value of contingent consideration liabilities of $6.5 billion in 2025 and $3.8 billion in 2024.
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.
In 2024, the change in fair value reflected higher estimated Skyrizi sales and the passage of time, partially offset by higher discount rates. Income Tax Expense The effective income tax rate was 36% in 2025, (15)% in 2024 and 22% in 2023.
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.
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. U.S.
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.
Future Cash Requirements Contractual Obligations The following table summarizes AbbVie's estimated material contractual obligations as of December 31, 2025: (in millions) Total Current Long-term Long-term debt, including current portion $ 64,503 $ 6,000 $ 58,503 Interest on long-term debt (a) 35,243 2,712 32,531 Contingent consideration liabilities (b) 25,374 3,455 21,919 (a) Includes estimated future interest payments on long-term debt.
AbbVie also issued $15.0 billion aggregate principal amount of unsecured senior notes in February 2024. Subsequent to the issuance of these senior notes, AbbVie terminated both the bridge and term loan credit agreements in the first quarter of 2024. AbbVie currently has an existing $5.0 billion five-year revolving credit facility that matures in March 2028.
Subsequent to the $15.0 billion issuance of senior notes in February 2024, AbbVie terminated both the bridge and term loan credit agreements in the first quarter of 2024.
The lower effective income tax rate in 2024 also reflects an increase due to acquisition costs related to certain business development activities and a decrease related to changes in fair value of contingent consideration.
IRS examination in 2024, partially offset by decreases in unrecognized tax benefits, a decrease in the impact of acquisition costs related to certain business development activities and a decrease related to the impact of changes in fair value of contingent consideration.
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.
The one-time transition tax liability was $1.1 billion, which is classified as a current liability as of December 31, 2025. Liabilities for unrecognized tax benefits totaled $5.6 billion as of December 31, 2025. It is not possible to reliably estimate the timing of the future cash outflows related to these liabilities.
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's global Imbruvica revenues decreased 14% in 2025 primarily driven by decreased demand and unfavorable pricing in the United States as well as decreased collaboration revenues. Net revenues for Venclexta increased 8% in 2025 primarily driven by increased demand, partially offset by unfavorable pricing.
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.
During 2025 and 2024, the company issued and redeemed commercial paper. The balance of commercial paper borrowings outstanding was $499 million as of December 31, 2025. There were no commercial paper borrowings outstanding as of December 31, 2024. AbbVie may issue additional commercial paper or retire commercial paper to meet liquidity requirements as needed.
AbbVie regularly communicates with its customers regarding the status of receivable balances, including their payment plans and obtains positive confirmation of the validity of the receivables. AbbVie establishes an allowance for credit losses equal to the estimate of future losses over the contractual life of outstanding accounts receivable.
Credit Risk AbbVie monitors economic conditions, the creditworthiness of customers and government regulations and funding, both domestically and abroad. AbbVie regularly communicates with its customers regarding the status of receivable balances, including their payment plans and obtains positive confirmation of the validity of the receivables.
Operating cash flows also reflected AbbVie’s contributions to its defined benefit plans of $326 million in 2024 and $366 million in 2023.
Operating cash flows also reflected AbbVie’s contributions to its defined benefit plans of $348 million in 2025 and $326 million in 2024. Investing cash flows in 2025 included payments made for other acquisitions and investments, net of cash acquired of $5.2 billion and capital expenditures of $1.2 billion.
Subsequent to December 31, 2024, in addition to the existing revolving credit facility, AbbVie entered into a new $3.0 billion five-year revolving credit facility that matures in January 2030. The revolving credit facilities enable the company to borrow funds on an unsecured basis at variable interest rates and contain various covenants.
Credit Facilities, Access to Capital and Credit Ratings Credit Facilities In January 2025, AbbVie entered into a new $3.0 billion five-year revolving credit facility that matures in January 2030 which is in addition to the existing $5.0 billion five-year revolving credit facility that matures in March 2028.
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.
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. 45 | 2025 Form 10-K 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.
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.
Acquired IPR&D and Milestones years ended December 31 (in millions) 2025 2024 2023 Upfront charges $ 4,808 $ 2,627 $ 582 Development milestones 208 130 196 Acquired IPR&D and milestones $ 5,016 $ 2,757 $ 778 Acquired IPR&D and milestones expense in 2025 included upfront charges of $1.9 billion related to the acquisition of Capstan Therapeutics, Inc., $906 million related to the acquisition of Gilgamesh Pharmaceuticals, Inc., $700 million related to a license agreement with Ichnos Glenmark Innovation, Inc., $350 million related to a license agreement with Gubra A/S and $335 million related to an option-to-license agreement with ADARx Pharmaceuticals, Inc.
Financing cash flows in 2023 included repayment of $1.0 billion floating rate three-year term loan, $1.0 billion aggregate principal amount of the company's 2.85% senior notes and $350 million aggregate principal amount of the company's 2.80% senior notes.
Financing cash flows in 2025 included the issuance of unsecured senior notes totaling $4.0 billion aggregate principal and $2.0 billion under the 364-day term loan credit agreement. Financing cash flows also included the repayment of $3.0 billion aggregate principal of 3.80% senior notes and $3.8 billion aggregate principal 3.60% senior notes.
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.
In the United States, Botox Cosmetic net revenues decreased 11% primarily driven by unfavorable pricing due to customer loyalty program changes, lower market share and decreased consumer demand, partially offset by the timing of customer inventory destocking in the prior year.
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.
R&D expense percentage for 2025 was favorably impacted by lower intangible asset impairment charges. Intangible asset impairment charges were $4.5 billion in 2024. R&D expenses other than intangible asset impairment charges increased to support all stages of the company's pipeline assets.
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.
In 2023, the U.S. Department of Health and Human Services, through Centers for Medicare and Medicaid Service, selected Imbruvica as one of 10 medicines subject to government-set prices in Medicare Part D beginning in 2026 and in 2025, selected Vraylar and Linzess as two of 15 medicines subject to government-set prices in Medicare Part D beginning in 2027.
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.
Of these programs, approximately 60 are in mid- and late-stage development. The company’s pipeline is focused on such important therapeutic areas as immunology, neuroscience, oncology and aesthetics and other specialties, including obesity. 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 enters into certain unconditional purchase obligations and other commitments in the normal course of business. 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.
AbbVie enters into certain unconditional purchase obligations and other commitments in the normal course of business.
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.
Gross margin percentage for 2025 was favorably impacted by increased leverage from net revenues growth, lower amortization of intangible assets and lower acquisition and integration costs offset by the unfavorable impact of intangible asset impairment charges of $847 million.
(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.
See Note 5 to the Consolidated Financial Statements for additional information. 2025 Form 10-K | 42 Other Operating Income Other operating income included a gain of $217 million in 2025 related to the termination of an R&D collaboration agreement with Calico Life Sciences LLC.
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.
FDA granted accelerated approval for Emrelis (telisotuzumab vedotin-tllv) for the treatment of adult patients with locally advanced or metastatic, non-squamous non-small cell lung cancer with high c-Met protein overexpression who have received a prior systemic therapy.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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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.
Biggest changeThe following table reflects the total foreign currency forward exchange contracts outstanding at December 31, 2025 and 2024: 2025 2024 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 $ 14,505 1.149 $ (443) $ 10,590 1.094 $ 183 Canadian dollar 1,042 1.373 (11) 1,042 1.365 39 Japanese yen 799 149.220 36 836 148.386 40 British pound 560 1.336 (2) 461 1.271 (1) All other currencies 2,662 n/a (38) 2,308 n/a 17 Total $ 19,568 $ (458) $ 15,237 $ 278 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 $2.0 billion at December 31, 2025.
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.
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, Canadian dollar, Japanese yen and British pound.
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.
As of December 31, 2025, 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.
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.
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 $81 million at December 31, 2025. 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 $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
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 $4.5 billion at December 31, 2025. A 100 basis point change is believed to be a reasonably possible near-term change in interest rates. 2025 Form 10-K | 50

Other ABBV 10-K year-over-year comparisons