AbbVie, a global, research-based biopharmaceutical company formed in 2013 following separation from Abbott, has registered a decline in net profit to $1,068 million during the second quarter ended June 2013 from $1,267 million in the corresponding period of last year.
Its worldwide sales of $4,692 million in the second quarter ended June 2013, up 4.4 per cent. On an operational basis, sales increased 5.1 per cent, excluding a 0.7 per cent unfavorable impact from foreign exchange rate fluctuations. Sales increased in the quarter despite the decline in TriCor/Trilipix sales due to the loss of exclusivity. Excluding TriCor/Trilipix sales and foreign exchange, sales increased 10.3 per cent in the second quarter.
Sales growth was driven primarily by the continued strength of Humira. Global Humira sales increased 12.1 per cent, or 12.8 per cent on an operational basis, excluding the impact of foreign exchange rate fluctuations. US Humira sales grew 16 per cent due to growth in dermatology and gastroenterology, as well as the launch of the ulcerative colitis indication. Total company sales growth was also driven by double-digit growth from key products including Synthroid, Creon, Zemplar and Duodopa.
Second-quarter adjusted gross margin ratio was 80.7 per cent, excluding intangible asset amortization and other specified items. The gross margin ratio under US generally accepted accounting principles (GAAP) was 77.5 per cent. Adjusted research and development (R&D) was 14.8 per cent of sales in the second quarter, reflecting funding actions in support of our emerging mid- and late-stage pipeline assets and the continued pursuit of additional Humira indications. On a GAAP basis, R&D was 15.1 per cent of sales.
"AbbVie has delivered strong performance in both the second quarter and the first six months as an independent company," said Richard A. Gonzalez, chairman and chief executive officer, AbbVie. "Our first-half performance, including better-than-expected sales growth, has allowed us to increase our earnings-per-share guidance for the year. We also reached a number of key pipeline milestones this quarter, and remain very encouraged by the progress of our mid- and late-stage development programmes."
Second-quarter diluted earnings per share were $0.66 on a GAAP basis. Adjusted diluted earnings per share, excluding intangible asset amortization expense and other specified items, were $0.82, above the company's previous guidance range.
For the first half ended June 2013, AbbVie's net sales increased by 4. 1 per cent to $9,021 million. However, its net profit declined to $2,036 million from $2,150 million in the similar period of last year. In 2013, AbbVie employs approximately 21,000 people worldwide and markets medicines in more than 170 countries.