AbbVie (ABBV) generated net revenue of $7.9 billion in 1Q18 compared to $6.5 billion in 1Q17. This rise in revenue was primarily driven by higher Humira and Imbruvica sales and partially offset by lower Viekira sales.
AbbVie’s US sales increased from $4 billion in 1Q17 to $4.7 billion in 1Q18, a constant currency growth of 18.3%. Its international sales grew from $2.4 billion in 1Q17 to $3.1 billion in 1Q18, a rise of 16.6% in constant currency terms.
AbbVie’s cost of products sold was $1.9 billion in 1Q18 compared to $1.6 billion in 1Q17. Its research and development expenses increased from $1.1 billion in 1Q17 to $1.2 billion in 1Q18. This rise in R&D expenses was the result of AbbVie’s increased efforts to support its emerging mid- and late-stage research pipeline.
AbbVie’s selling, general, and administrative expenses increased from $1.4 billion in 1Q17 to $1.8 billion in 1Q18. During 1Q18, AbbVie incurred acquired in-process research and development expenses of $69 million. The increase in its SG&A expenses was due to the impact of new product launch expenses and a litigation reserve charge of $118 million.
The company’s total operating costs and expenses increased from $4.1 billion in 1Q17 to $5 billion in 1Q18. AbbVie’s operating income increased from $2.4 billion in 1Q17 to $2.9 billion in 1Q18.
AbbVie incurred interest expenses of $251 million in 1Q18 compared to $247 million in 1Q17. Its income tax expenses were $14 million in 1Q18 compared to $375 million in 1Q18. Its significantly lower tax expenses coupled with its superior operating performance helped AbbVie generate net income of $2.8 billion in 1Q18 compared to $1.7 billion in 1Q17. This translated into a net income per share of $1.77 in 1Q18 compared to $1.06 in 1Q17.
In the next part of the series, we’ll take a look at AbbVie’s cash flows and share repurchase program.