AbbVie 10-Q 2025-03-31

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-35565

AbbVie Inc.

(Exact name of registrant as specified in its charter)
Delaware						32-0375147
(State or other jurisdiction of incorporation or organization)						(I.R.S. employer identification number)

1 North Waukegan Road

North Chicago, Illinois 60064-6400

Telephone: (847) 932-7900

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer			☒			Accelerated Filer			☐
Non-Accelerated Filer			☐			Smaller reporting company			☐
						Emerging growth company			☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Securities registered pursuant to Section 12(b) of the Act:

Title of each class						Trading Symbol(s)						Name of each exchange on which registered
Common Stock, par value $0.01 per share						ABBV						New York Stock Exchange
												NYSE Texas
0.750% Senior Notes due 2027						ABBV27						New York Stock Exchange
2.125% Senior Notes due 2028						ABBV28						New York Stock Exchange
2.625% Senior Notes due 2028						ABBV28B						New York Stock Exchange
2.125% Senior Notes due 2029						ABBV29						New York Stock Exchange
1.250% Senior Notes due 2031						ABBV31						New York Stock Exchange

As of April 30, 2025, AbbVie Inc. had 1,766,403,027 shares of common stock at $0.01 par value outstanding.

AbbVie Inc. and Subsidiaries

Table of Contents

PART I.			FINANCIAL INFORMATION
						Page
Item 1.			FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA			1
Item 2.			MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS			25
Item 3.			QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK			33
Item 4.			CONTROLS AND PROCEDURES			33
PART II.			OTHER INFORMATION
Item 1.			LEGAL PROCEEDINGS			35
Item 2.			UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS			35
Item 5.			OTHER ITEMS			35
Item 6.			EXHIBITS			36

PART I. FINANCIAL INFORMATION

AbbVie Inc. and Subsidiaries

Condensed Consolidated Statements of Earnings (unaudited)

												Three months ended March 31,
(in millions, except per share data)																		2025						2024
Net revenues																		$	13,343					$	12,310
Cost of products sold																		4,002						4,094
Selling, general and administrative																		3,293						3,315
Research and development																		2,067						1,939
Acquired IPR&D and milestones																		248						164
Total operating costs and expenses																		9,610						9,512
Operating earnings																		3,733						2,798
Interest expense, net																		627						453
Net foreign exchange loss																		4						4
Other expense, net																		1,441						586
Earnings before income tax expense																		1,661						1,755
Income tax expense																		372						383
Net earnings																		1,289						1,372
Net earnings attributable to noncontrolling interest																		3						3
Net earnings attributable to AbbVie Inc.																		$	1,286					$	1,369
Per share data
Basic earnings per share attributable to AbbVie Inc.																		$	0.72					$	0.77
Diluted earnings per share attributable to AbbVie Inc.																		$	0.72					$	0.77
Weighted-average basic shares outstanding																		1,768						1,769
Weighted-average diluted shares outstanding																		1,772						1,773

The accompanying notes are an integral part of these condensed consolidated financial statements.

2025 Form 10-Q |			1

AbbVie Inc. and Subsidiaries Condensed Consolidated Statements of Comprehensive Income (unaudited)

									Three months ended March 31,
(in millions)															2025						2024
Net earnings															$	1,289					$	1,372
Foreign currency translation adjustments, net of tax expense (benefit) of $17 for the three months ended March 31, 2025 and $(20) for the three months ended March 31, 2024															487						(396)
Net investment hedging activities, net of tax expense (benefit) of $(77) for the three months ended March 31, 2025 and $57 for the three months ended March 31, 2024															(283)						207
Pension and post-employment benefits, net of tax expense (benefit) of $0 for the three months ended March 31, 2025 and $1 for the three months ended March 31, 2024															(2)						10
Cash flow hedging activities, net of tax expense (benefit) of $(4) for the three months ended March 31, 2025 and $7 for the three months ended March 31, 2024															(19)						30
Other comprehensive income (loss)															183						(149)
Comprehensive income															1,472						1,223
Comprehensive income attributable to noncontrolling interest															3						3
Comprehensive income attributable to AbbVie Inc.															$	1,469					$	1,220

The accompanying notes are an integral part of these condensed consolidated financial statements.

2025 Form 10-Q |			2

AbbVie Inc. and Subsidiaries Condensed Consolidated Balance Sheets

(in millions, except share data)			March 31, 2025						December 31, 2024
			(unaudited)
Assets
Current assets
Cash and equivalents			$	5,175					$	5,524
Short-term investments			1						31
Accounts receivable, net			12,477						10,919
Inventories			4,526						4,181
Prepaid expenses and other			5,496						4,927
Total current assets			27,675						25,582
Investments			287						279
Property and equipment, net			5,237						5,134
Intangible assets, net			58,489						60,068
Goodwill			35,285						34,956
Other assets			9,192						9,142
Total assets			$	136,165					$	135,161
Liabilities and Equity
Current liabilities
Short-term borrowings			$	1,593					$	—
Current portion of long-term debt and finance lease obligations			3,769						6,804
Accounts payable and accrued liabilities			31,041						31,9

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The following is a discussion and analysis of the financial condition of AbbVie Inc. (AbbVie or the company) as of March 31, 2025 and December 31, 2024 and the results of operations for the three months ended March 31, 2025 and 2024. This commentary should be read in conjunction with the Condensed Consolidated Financial Statements and accompanying notes appearing in Item 1, “Financial Statements and Supplementary Data.”

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, aesthetics 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.

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 will retire from the board.

AbbVie's products are generally sold worldwide directly to wholesalers, distributors, government agencies, health care facilities, specialty pharmacies and independent retailers from AbbVie-owned distribution centers and public warehouses. Certain products (including aesthetic products and devices) are also sold directly to physicians and other licensed healthcare providers. In the United States, AbbVie distributes pharmaceutical products principally through independent wholesale distributors, with some sales directly to retailers, pharmacies, patients or other customers. Outside the United States, AbbVie sells products primarily to wholesalers or through distributors, and depending on the market works through largely centralized national payers system to agree on reimbursement terms. Certain products are co-marketed or co-promoted with other companies. AbbVie operates as a single global business segment and has approximately 55,000 employees.

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. 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, neuroscience, oncology, aesthetics 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. In addition, AbbVie anticipates several regulatory submissions and data readouts from key clinical trials in the next 12 months.

Financial Results

The company’s financial performance for the three months ended March 31, 2025 included delivering worldwide net revenues of $13.3 billion, operating earnings of $3.7 billion, diluted earnings per share of $0.72 and cash flows from operations of $1.6 billion. Worldwide net revenues increased 8% on a reported basis and 10% on a constant currency basis.

Financial results for the three months ended March 31, 2025 also included the following costs: (i) $1.9 billion related to the amortization of intangible assets; and (ii) $1.5 billion for the change in fair value of contingent consideration liabilities. Additionally, financial results reflected continued funding to support all stages of AbbVie’s pipeline assets and continued investment in AbbVie’s on-market brands.

2025 Form 10-Q |			25

Recent Events

AbbVie’s business may be impacted by risks associated with global macroeconomic conditions, including international trade disruptions and disputes as well as trade protection measures. For example, the U.S. government has recently imposed broad based tariffs targeting specified countries. While the impact of these tariffs on AbbVie’s operations to date has not been material, the U.S. government may in the future pause, reimpose or increase tariffs and foreign governments have and, in the future, may impose retaliatory trade protection measures. Any new or additional tariffs, particularly those targeting the pharmaceuticals industry, may increase uncertainties and associated risks and could adversely impact AbbVie’s business and results of operations.

Research and Development

Research and innovation are the cornerstones of AbbVie’s business as a global biopharmaceutical company. 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. Of these programs, approximately 50 are in mid- and late-stage development. The company’s pipeline is focused on such important specialties as immunology, neuroscience, oncology, aesthetics and eye care. AbbVie’s recently announced partnership with Gubra marks the company’s entrance into the obesity field, a therapeutic area with significant unmet need.

The following sections summarize transitions of significant programs from mid-stage development to late-stage development as well as developments in significant late-stage and registration programs. AbbVie expects multiple mid-stage programs to transition into late-stage programs in the next 12 months.

Significant Programs and Developments

Immunology

Rinvoq

• In April 2025, AbbVie announced that the European Commission (EC) granted marketing authorization to Rinvoq for the treatment of giant cell arteritis (GCA) in adult patients.

• In April 2025, AbbVie announced that the U.S. Food and Drug Administration (FDA) approved Rinvoq for the treatment of GCA in adult patients.

Neuroscience

Qulipta

• In February 2025, AbbVie initiated a Phase 3 clinical trial to evaluate Qulipta for the preventive treatment of menstrual migraine.

Aesthetics

BoNT/E

• In April 2025, AbbVie announced that it submitted a Biologics License Application (BLA) to the U.S. FDA for approval of trenibotulinumtoxinE (BoNT/E) for the treatment of moderate to severe glabellar lines. BoNT/E is a first-in-class botulinum neurotoxin serotype E characterized by a rapid onset of action as early as 8 hours after administration and short duration of effect of 2-3 weeks. If approved, BoNT/E will be the first neurotoxin of its kind available to patients.

Other

Emblaveo

• In February 2025, AbbVie announced that the U.S. FDA approved Emblaveo (aztreonam and avibactam), as the first fixed-dose, intravenous, monobactam/β-lactamase inhibitor combination antibiotic to treat complicated intra-abdominal infections, including those caused by Gram-negative bacteria.

For a more comprehensive discussion of AbbVie’s products and pipeline, see the company’s Annual Report on Form 10-K for the year ended December 31, 2024.

2025 Form 10-Q |			26

RESULTS OF OPERATIONS

Net Revenues

The comparisons presented at constant currency rates reflect comparative local currency net revenues at the prior year’s foreign exchange rates. This measure provides information on the change in net revenues assuming that foreign currency exchange rates had not changed between the prior and current periods. AbbVie believes that the non-GAAP measure of change in net revenues at constant currency rates, when used in conjunction with the GAAP measure of change in net revenues at actual currency rates, may provide a more complete understanding of the company’s operations and can facilitate analysis of the company’s results of operations, particularly in evaluating performance from one period to another.

																		Three months ended March 31,												Percent change
																								At actual currency rates						At constant currency rates
(dollars in millions)																					2025						2024
United States																														$	9,979					$	9,041					10.4		%				10.4		%
International																														3,364						3,269						2.9		%				8.3		%
Net revenues																														$	13,343					$	12,310					8.4		%				9.8		%

2025 Form 10-Q |			27

The following table details AbbVie’s worldwide net revenues:

																					Three months ended March 31,												Percent change
																											At actual currency rates						At constant currency rates
(dollars in millions)																								2025						2024
Immunology
Skyrizi			United States																														$	2,919					$	1,656					76.2		%				76.2		%
			International																														506						352						43.9		%				52.3		%
			Total																														$	3,425					$	2,008					70.5		%				72.0		%
Rinvoq			United States																														$	1,220					$	725					68.3		%				68.3		%
			International																														498						368						35.3		%				42.8		%
			Total																														$	1,718					$	1,093					57.2		%				59.7		%
Humira			United States																														$	744					$	1,771					(58.0)		%				(58.0)		%
			International																														377						499						(24.4)		%				(19.5)		%
			Total																														$	1,121					$	2,270					(50.6)		%				(49.5)		%
Neuroscience
Vraylar			United States																														$	763					$	692					10.3		%				10.3		%
			International																														2						2						13.1		%				20.2		%
			Total																														$	765					$	694					10.3		%				10.3		%
Botox Therapeutic			United States																														$	723					$	611					18.2		%				18.2		%
			International																														143						137						4.8		%				11.4		%
			Total																														$	866					$	748					15.8		%				17.0		%
Ubrelvy			United States																														$	233					$	197					17.6		%				17.6		%
			International																														7						6						23.3		%				29.3		%
			Total																														$	240					$	203					17.8		%				18.0		%
Qulipta			United States																														$	172					$	128					34.2		%				34.2		%
			International																														21						3						>100.0 %						>100.0 %
			Total																														$	193					$	131					47.6		%				48.3		%
Vyalev			United States																														$	6					$	—					n/m						n/m
			International																														57						9						>100.0 %						>100.0 %
			Total																														$	63					$	9					>100.0 %						>100.0 %
Duodopa			United States																														$	20					$	25					(19.4)		%				(19.4)		%
			International																														76						90						(16.0)		%				(11.7)		%
			Total																														$	96					$	115					(16.7)		%				(13.3)		%
Other Neuroscience			United States																														$	55					$	61					(9.5)		%				(9.5)		%
			International																														4						4						(1.0)		%				6.5		%
			Total																														$	59					$	65					(8.9)		%				(8.4)		%
Oncology
Imbruvica			United States																														$	529					$	610					(13.3)		%				(13.3)		%
			Collaboration revenues																														209						228						(8.2)		%				(8.2)		%
			Total																														$	738					$	838					(11.9)		%				(11.9)		%
Venclexta			United States																														$	312					$	281					11.0		%				11.0		%
			International																														353						333						6.0		%				13.4		%
			Total																														$	665					$	614					8.3		%				12.3		%
Elahere			United States																														$	165					$	64					>100.0 %						>100.0 %
			International																														14						—						n/m						n/m
			Total																														$	179					$	64					>100.0 %						>100.0 %
Epkinly			Collaboration revenues																														$	36					$	22					62.1		%				62.1		%
			International																														15						5						>100.0 %						>100.0 %
			Total																														$	51					$	27					89.8		%				94.8		%
Aesthetics
Botox Cosmetic			United States																														$	295					$	389					(24.3)		%				(24.3)		%
			International																														261						244						6.9		%				11.1		%
			Total																														$	556					$	633					(12.3)		%				(10.7)		%

2025 Form 10-Q |			28

																					Three months ended March 31,												Percent change
																											At actual currency rates						At constant currency rates
(dollars in millions)																								2025						2024
Juvederm Collection			United States																														$	75					$	106					(29.0)		%				(29.0)		%
			International																														156						191						(18.5)		%				(15.0)		%
			Total																														$	231					$	297					(22.2)		%				(20.0)		%
Other Aesthetics			United States																														$	270					$	281					(3.5)		%				(3.5)		%
			International																														45						38						18.1		%				23.2		%
			Total																														$	315					$	319					(0.9)		%				(0.3)		%
Eye Care
Ozurdex			United States																														$	30					$	34					(12.1)		%				(12.1)		%
			International																														93						97						(3.8)		%				1.1		%
			Total																														$	123					$	131					(6.0)		%				(2.4)		%
Lumigan/Ganfort			United States																														$	48					$	29					69.2		%				69.2		%
			International																														58						62						(6.8)		%				(0.5)		%
			Total																														$	106					$	91					17.0		%				21.4		%
Alphagan/Combigan			United States																														$	26					$	15					68.5		%				68.5		%
			International																														34						44						(21.4)		%				(15.4)		%
			Total																														$	60					$	59					1.9		%				6.3		%
Other Eye Care			United States																														$	117					$	149					(21.4)		%				(21.4)		%
			International																														100						108						(7.1)		%				(0.2)		%
			Total																														$	217					$	257					(15.4)		%				(12.5)		%
Other Key Products
Mavyret			United States																														$	142					$	144					(0.7)		%				(0.7)		%
			International																														164						205						(20.4)		%				(15.8)		%
			Total																														$	306					$	349					(12.3)		%				(9.6)		%
Creon			United States																														$	355					$	285					24.6		%				24.6		%
Linzess/Constella			United States																														$	139					$	257					(46.1)		%				(46.1)		%
			International																														9						9						3.1		%				9.3		%
			Total																														$	148					$	266					(44.4)		%				(44.2)		%
All other																																	$	747					$	744					0.1		%				0.7		%
Total net revenues																																	$	13,343					$	12,310					8.4		%				9.8		%

n/m – Not meaningful

The following discussion and analysis of AbbVie’s net revenues by product is presented on a constant currency basis.

Net revenues for Skyrizi increased 72% for the three months ended March 31, 2025 primarily driven by continued strong market share uptake as well as market growth across all indications.

Net revenues for Rinvoq increased 60% for the three months ended March 31, 2025 primarily driven by continued strong market share uptake as well as market growth across all indications.

Net revenues for Humira decreased 50% for the three months ended March 31, 2025 primarily driven by continued impact of direct biosimilar competition following the loss of exclusivity.

Net revenues for Vraylar increased 10% for the three months ended March 31, 2025 primarily driven by continued market share uptake as well as market growth.

Net revenues for Botox Therapeutic increased 17% for the three months ended March 31, 2025 primarily driven by continued market share uptake as well as market growth.

Net revenues for Ubrelvy increased 18% for the three months ended March 31, 2025 primarily driven by continued market share uptake.

Net revenues for Qulipta increased 48% for the three months ended March 31, 2025 primarily driven by continued market share uptake.

Net revenues for Imbruvica represent product revenues in the United States and collaboration revenues outside of the United States related to AbbVie’s 50% share of Imbruvica profit. AbbVie's global Imbruvica revenues decreased 12% for the three months ended

2025 Form 10-Q |			29

March 31, 2025 primarily driven by the timing of customer inventory stocking in the prior year, decreased demand and lower market share in the United States as well as decreased collaboration revenues.

Net revenues for Venclexta increased 12% for the three months ended March 31, 2025 primarily driven by continued market share uptake.

Net revenues for Elahere increased greater than 100% for the three months ended March 31, 2025 primarily driven by a full period of Elahere results in 2025 compared to the prior year.

Net revenues for Botox Cosmetic decreased 11% for the three months ended March 31, 2025. In the United States, Botox Cosmetic net revenues decreased 24% primarily driven by unfavorable pricing due to consumer loyalty program changes and decreased market share. Internationally, Botox Cosmetic net revenues increased 11% primarily driven by increased consumer demand across certain international markets and the timing of customer inventory stocking.

Net revenues for Juvederm Collection decreased 20% for the three months ended March 31, 2025 primarily driven by decreased global consumer demand and unfavorable pricing due to consumer loyalty program changes in the United States.

Gross Margin

												Three months ended March 31,
(dollars in millions)																								2025						2024						% change
Gross margin																								$	9,341					$	8,216					14		%
as a % of net revenues																								70		%				67		%

Gross margin as a percentage of net revenues increased for the three months ended March 31, 2025 compared to the prior year primarily due to increased leverage from net revenues growth, favorable changes in product mix and acquisition and integration costs incurred during the three months ended March 31, 2024 in connection with the ImmunoGen acquisition.

Selling, General and Administrative

												Three months ended March 31,
(dollars in millions)																								2025						2024						% change
Selling, general and administrative																								$	3,293					$	3,315					(1)		%
as a % of net revenues																								25		%				27		%

Selling, general and administrative (SG&A) expenses as a percentage of net revenues decreased for the three months ended March 31, 2025 compared to the prior year primarily due to acquisition and integration costs incurred during the three months ended March 31, 2024 in connection with the ImmunoGen acquisition.

Research and Development

												Three months ended March 31,
(dollars in millions)																								2025						2024						% change
Research and development																								$	2,067					$	1,939					7		%
as a % of net revenues																								15		%				16		%

Research and development (R&D) expenses as a percentage of net revenues decreased for the three months ended March 31, 2025 compared to the prior year primarily due to acquisition and integration costs incurred during the three months ended March 31, 2024 in connection with the ImmunoGen acquisition partially offset by increased funding to support all stages of the company’s pipeline assets.

Acquired IPR&D and Milestones

												Three months ended March 31,
(dollars in millions)																		2025						2024
Upfront charges																		$	246					$	79
Development milestones																		2						85
Acquired IPR&D and milestones																		$	248					$	164

2025 Form 10-Q |			30

Other Non-Operating Expenses (Income)

												Three months ended March 31,
(in millions)																		2025						2024
Interest expense																		$	700					$	660
Interest income																		(73)						(207)
Interest expense, net																		$	627					$	453
Net foreign exchange loss																		$	4					$	4
Other expense, net																		1,441						586

Interest expense increased for the three months ended March 31, 2025 compared to the prior year primarily due to a higher average debt balance.

Interest income decreased for the three months ended March 31, 2025 compared to the prior year primarily due to a lower average cash and cash equivalents balance.

Other expense, net included charges related to changes in fair value of contingent consideration liabilities of $1.5 billion for the three months ended March 31, 2025 and $660 million for the three months ended March 31, 2024. 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 milestones, discount rates, the estimated amount of future sales of the acquired products and other market-based factors. For the three months ended March 31, 2025, the change in fair value reflected higher estimated Skyrizi sales, the passage of time and lower discount rates. For the three months ended March 31, 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 tax rate was 22% for the three months ended March 31, 2025 and 2024. The effective tax rate in each period differed from the U.S. statutory tax rate of 21% principally due to the impact of foreign operations which reflects the impact of lower income tax rates in locations outside the United States, changes in fair value of contingent consideration and business development activities.

FINANCIAL POSITION, LIQUIDITY AND CAPITAL RESOURCES

			Three months ended March 31,
(in millions)			2025						2024
Cash flows provided by (used in):
Operating activities			$	1,635					$	4,040
Investing activities			(735)						(9,588)
Financing activities			(1,258)						10,819

Operating cash flows for the three months ended March 31, 2025 decreased compared to the prior year primarily due to the timing of working capital and payments related to litigation matters, partially offset by increased results from operations driven by higher net revenues and ImmunoGen acquisition-related cash expenses during the three-months ended March 31, 2024.

Investing cash flows for the three months ended March 31, 2025 included $210 million cash consideration paid to acquire Nimble Therapeutics, Inc. offset by cash acquired of $6 million, payments made for other acquisitions and investments of $334 million and capital expenditures of $235 million. Investing cash flows for the three months ended March 31, 2024 included $9.8 billion cash consideration paid to acquire ImmunoGen offset by cash acquired of $591 million, payments made for other acquisitions and investments of $190 million and capital expenditures of $193 million.

Financing cash flows for the three months ended March 31, 2025 included the issuance of unsecured senior notes totaling $4.0 billion aggregate principal and the repayment of $3.0 billion aggregate principal of 3.80% senior notes. Financing cash flows for the three months ended March 31, 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. Additionally, financing cash flows included the issuance and repayment of $5.0 billion under the term loan credit agreement and repayment of $99 million of secured term notes assumed from ImmunoGen in conjunction with the acquisition.

2025 Form 10-Q |			31

Financing cash flows also included cash dividend payments of $2.9 billion for the three months ended March 31, 2025 and $2.8 billion for the three months ended March 31, 2024. The increase in cash dividend payments was primarily driven by the increase in the quarterly dividend rate.

On February 13, 2025, the company announced that its board of directors declared a quarterly cash dividend of $1.64 per share for stockholders of record at the close of business on April 15, 2025, payable on May 15, 2025. The timing, declaration, amount of and payment of any dividends by AbbVie in the future is within the discretion of its board of directors and will depend upon many factors, including AbbVie’s financial condition, earnings, capital requirements of its operating subsidiaries, covenants associated with certain of AbbVie’s debt service obligations, legal requirements, regulatory constraints, industry practice, ability to access capital markets and other factors deemed relevant by its board of directors.

The company's stock repurchase authorization permits purchases of AbbVie shares from time to time in open-market or private transactions at management's discretion. The program has no time limit and can be discontinued at any time. 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 during the three months ended March 31, 2025 and 5 million shares for $959 million during the three months ended March 31, 2024.

During the three months ended March 31, 2025 and 2024, the company issued and redeemed commercial paper. The balance of commercial paper borrowings outstanding was $1.6 billion as of March 31, 2025 and there were no amounts outstanding as of December 31, 2024. 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. 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. 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.

Credit Facility, Access to Capital and Credit Ratings

Credit Facility

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. The revolving credit facilities are available to support AbbVie’s commercial paper program and enable the company to borrow funds to meet liquidity requirements on an unsecured basis at variable interest rates and contain various covenants. At March 31, 2025, the company was in compliance with all covenants, and commitment fees under the credit facility were insignificant. No amounts were outstanding under the company's credit facility as of March 31, 2025 and December 31, 2024.

Subsequent to March 31, 2025, the company entered into a $4.0 billion 364-day term loan credit agreement. No amounts were borrowed under the term loan credit agreement as of the date of filing of this Quarterly Report on Form 10-Q.

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. Subsequent to the $15.0 billion issuance of senior notes, AbbVie terminated both the bridge and term loan credit agreements in the first quarter of 2024.

Access to Capital

The company intends to fund short-term and long-term financial obligations as they mature through cash on hand, future cash flows from operations or has the ability to issue additional debt. The company’s ability to generate cash flows from operations, issue debt or enter into financing arrangements on acceptable terms could be adversely affected if there is a material decline in the demand for the company’s products or in the solvency of its customers or suppliers, deterioration in the company’s key financial ratios or credit ratings or other material unfavorable changes in business conditions. 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.

2025 Form 10-Q |			32

Credit Ratings

There were no changes in the company’s credit ratings during the three months ended March 31, 2025. Unfavorable changes to the ratings may have an adverse impact on future financing arrangements; however, they would not affect the company’s ability to draw on its credit facility and would not result in an acceleration of scheduled maturities of any of the company’s outstanding debt.

CRITICAL ACCOUNTING POLICIES

A summary of the company’s significant accounting policies is included in Note 2, “Summary of Significant Accounting Policies” in AbbVie's Annual Report on Form 10-K for the year ended December 31, 2024. There have been no significant changes in the company’s application of its critical accounting policies during the three months ended March 31, 2025.

FORWARD-LOOKING STATEMENTS

Some statements in this quarterly report on Form 10-Q are, or may be considered, forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. The words “believe,” “expect,” “anticipate,” “project,” and similar expressions and uses of future or conditional verbs, generally identify forward-looking statements. AbbVie cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. Such risks and uncertainties include, but are not limited to challenges to intellectual property, competition from other products, difficulties inherent in the research and development process, adverse litigation or government action, changes to laws and regulations applicable to our industry, the impact of global macroeconomic factors, such as economic downturns or uncertainty, international conflict, trade disputes and tariffs, and other uncertainties and risks associated with global business operations. Additional information about the economic, competitive, governmental, technological and other factors that may affect AbbVie’s operations is set forth in Item 1A, “Risk Factors,” in AbbVie’s Annual Report on Form 10-K for the year ended December 31, 2024, which has been filed with the Securities and Exchange Commission. AbbVie notes these factors for investors as permitted by the Private Securities Litigation Reform Act of 1995. AbbVie undertakes no obligation, and specifically declines, to release publicly any revisions to forward-looking statements as a result of subsequent events or developments, except as required by law.