AbbVie Updates 2025 Earnings Guidance to Reflect Q1 Acquired IPR&D and Milestones Expense

NORTH CHICAGO, IL – April 2025 – AbbVie Inc. (NYSE: ABBV) today announced updated 2025 earnings guidance to reflect the impact of $248 million in acquired in-process R&D (IPR&D) and milestones expense incurred during the first quarter of 2025.

For the first quarter ended March 31, 2025, AbbVie now expects adjusted diluted earnings per share (EPS) in the range of $2.34 to $2.38, down from the previously announced range of $2.47 to $2.51 due to a $0.13 per share impact from the IPR&D and milestones expense.

For the full-year 2025, the updated adjusted EPS guidance is $11.99 to $12.19, down from $12.12 to $12.32, also reflecting the $0.13 per share first-quarter IPR&D and milestones impact.

AbbVie noted that this guidance does not include potential IPR&D or milestone expenses beyond Q1 2025, as such costs are not reliably forecastable. Additionally, the guidance excludes the financial impact of the recently closed licensing agreement with Gubra to develop GUB014295, which occurred after the first quarter.

AbbVie will announce its first-quarter 2025 financial results on Friday, April 25, 2025, before the market opens.

AbbVie will host a live webcast of the earnings conference call at 8 a.m. Central time.

It will be accessible through AbbVie's Investor Relations website at investors.abbvie.com. An archived edition of the session will be available later that day.

AbbVie Inc. has filed a Form 8-K with the U.S. Securities and Exchange Commission (SEC) on February 26, 2025, reporting the completion of a previously announced underwritten public offering of senior notes. The key details from this filing include:

AbbVie has issued a total of $4 billion in senior notes, comprising:
- $1.25 billion of 4.650% senior notes due 2028
- $1 billion of 4.875% senior notes due 2030
- $1 billion of 5.200% senior notes due 2035
- $750 million of 5.600% senior notes due 2055

The offering was registered under the Securities Act of 1933 via a registration statement filed on February 14, 2025. The terms of the notes were outlined in a prospectus supplement filed on February 20, 2025.

The notes are unsecured and unsubordinated obligations of AbbVie, ranking equally with all of its existing and future unsecured debt.

AbbVie has the option to redeem the notes before maturity at a specified redemption price, which varies depending on the series of notes. After certain specified dates, the notes can be redeemed at face value plus accrued interest.

The indenture governing the notes includes standard covenants, such as restrictions on AbbVie's ability to incur certain types of secured debt or merge with other entities.

The filing includes exhibits such as the base indenture, a supplemental indenture, forms of the issued notes, and a legal opinion from Wachtell, Lipton, Rosen & Katz regarding the offering.

AbbVie Inc. announced that it has entered into an underwriting agreement to issue and sell $4 billion in senior notes across four maturities: $1.25 billion of 4.650% notes due 2028, $1 billion of 4.875% notes due 2030, $1 billion of 5.200% notes due 2035, and $750 million of 5.600% notes due 2055. The public offering price for the notes ranged from 99.750% to 99.908% of their principal amounts.

The offering is registered under the Securities Act of 1933 and is expected to close on February 26, 2025, pending customary conditions. AbbVie anticipates net proceeds of approximately $3.98 billion, which will be used to repurchase, redeem, or repay existing senior notes due in 2025, including $3.75 billion of 3.600% notes, $2.89 billion of 3.800% notes, and $130.225 million of 3.800% notes from Allergan Funding SCS, as well as for general corporate purposes.

The underwriting agreement includes standard representations, warranties, and indemnifications. Several underwriters, including BofA Securities, J.P. Morgan Securities, Morgan Stanley, Barclays Capital, and Mizuho Securities, are involved. Some of these underwriters have previously provided financial services to AbbVie.

Forward-looking statements in the report note risks and uncertainties that could impact expected outcomes, with additional details available in AbbVie’s latest annual report.

This Form 8-K filing by AbbVie Inc., dated February 5, 2025, announces the company's entry into a new revolving credit agreement on January 30, 2025. This agreement establishes an unsecured revolving credit facility of up to $3.0 billion, maturing on January 30, 2030. It allows AbbVie to borrow funds on an unsecured basis at variable interest rates while maintaining certain covenants.

AbbVie had no borrowings outstanding under this agreement as of the effective date. Additionally, its existing $5.0 billion revolving credit facility maturing in March 2028 remains in effect, bringing the company’s total available revolving credit facilities to $8.0 billion.

AbbVie reported its full-year and fourth-quarter 2024 financial results, highlighting a 3.7% increase in total net revenues to $56.334 billion, with operational growth of 4.6%. The company’s adjusted diluted EPS for the year was $10.12, reflecting an 8.9% decline, partially impacted by acquired in-process research and development (IPR&D) and milestone expenses. Fourth-quarter net revenues rose 5.6% to $15.102 billion, with an adjusted diluted EPS of $2.16.

The immunology portfolio generated $26.682 billion in annual revenue, led by Skyrizi ($11.718 billion, up 50.9%) and Rinvoq ($5.971 billion, up 50.4%), while Humira’s revenue declined to $8.993 billion. The oncology portfolio saw a 10.8% growth to $6.555 billion, driven by Venclexta and the launch of Elahere. Neuroscience revenues increased 16.6% to $8.999 billion, with strong performances from Botox Therapeutic and Vraylar. The aesthetics portfolio declined 2.2% to $5.176 billion, impacted by lower Juvederm sales.

AbbVie reaffirmed its long-term outlook, projecting high single-digit annual revenue growth through 2029. The company raised its 2027 sales forecast for Skyrizi and Rinvoq to over $31 billion and expects its aesthetics division to achieve similar growth from 2025 through 2029. For 2025, AbbVie issued adjusted EPS guidance between $12.12 and $12.32, excluding IPR&D expenses.

Recent strategic moves include the European approval of Elahere, positive results for Parkinson’s treatment tavapadon, and multiple partnerships in oncology and neuroscience. However, the company recorded a $3.5 billion impairment charge related to the schizophrenia treatment emraclidine after its Phase 2 trials failed to meet expectations.

Despite challenges, AbbVie remains optimistic about its growth trajectory, supported by new product launches, strong demand in immunology and neuroscience, and ongoing investments in innovation.