AbbVie 2012 Annual Report Download - page 45

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following is a discussion and analysis of the financial position and results of operations of
AbbVie Inc. for each of the three years in the period ended December 31, 2012. This commentary
should be read in conjunction with the combined financial statements and accompanying notes
appearing in Item 8, ‘‘Financial Statements and Supplementary Data.’’
EXECUTIVE OVERVIEW
Company Overview
AbbVie Inc. (AbbVie or the company) is a global, research-based biopharmaceutical company. AbbVie
develops and markets advanced therapies that address some of the world’s most complex and serious
diseases. AbbVie products are used to treat rheumatoid arthritis, psoriasis, Crohn’s disease, HIV, cystic
fibrosis complications, low testosterone, thyroid disease, Parkinson’s disease, ulcerative colitis, and
complications associated with chronic kidney disease, among other indications. AbbVie also has a
pipeline of promising new medicines, including more than 20 compounds or indications in Phase II or
Phase III development across such important medical specialties as immunology, renal care, hepatitis C
virus (HCV), women’s health, oncology, and neuroscience, including multiple sclerosis and Alzheimer’s
disease. AbbVie has approximately 21,500 employees and its products are sold in over 170 countries.
AbbVie operates in one business segment—pharmaceutical products.
On January 1, 2013, AbbVie became an independent company as a result of the distribution by Abbott
Laboratories (Abbott) of 100 percent of the outstanding common stock of AbbVie to Abbott’s
shareholders. Each Abbott shareholder of record as of the close of business on December 12, 2012,
received one share of AbbVie common stock for each Abbott common share held as of the record
date. AbbVie was incorporated in Delaware on April 10, 2012 and is comprised of Abbott’s former
research-based pharmaceuticals business. AbbVie’s Registration Statement on Form 10 was declared
effective by the U.S. Securities and Exchange Commission on December 7, 2012. AbbVie’s common
stock began trading ‘‘regular-way’’ under the ticker symbol ‘‘ABBV’’ on the New York Stock Exchange
on January 2, 2013. Refer to the ‘‘Basis of Presentation’’ section below for further information.
AbbVie’s products include a broad line of adult and pediatric pharmaceuticals manufactured, marketed,
and sold worldwide and are generally sold directly to wholesalers, distributors, government agencies,
health care facilities, specialty pharmacies, and independent retailers from distribution centers and
public warehouses. Outside the United States, sales are made either directly to customers or through
distributors, depending on the market served. Certain products are co-marketed or co-promoted with
other companies.
HUMIRA’s worldwide sales increased to $9.3 billion in 2012 compared to $7.9 billion in 2011 and
$6.5 billion in 2010. In 2003, AbbVie began the worldwide launch of HUMIRA for rheumatoid
arthritis, followed by launches for six additional indications in the United States and eight additional
indications in the European Union. HUMIRA received approval for the treatment of moderately to
severely active ulcerative colitis in adult patients who have had an inadequate response to conventional
therapy from the European Commission in April 2012 and from the U.S. Food and Drug
Administration (FDA) in October 2012. In July 2012, HUMIRA received approval from the European
Commission for the treatment of severe axial spondyloarthritis in adult patients who have no X-ray
evidence of structural damage, and in November 2012, it received approval from the European
Commission for the treatment of pediatric patients aged 6 to 17 years with severe active Crohn’s
disease who failed, are intolerant to, or have contraindications to conventional therapy. AbbVie is
studying additional indications for HUMIRA. Substantial research and development and selling support
has been and continues to be dedicated to maximizing the worldwide potential of HUMIRA. AbbVie
forecasts low double-digit growth for worldwide HUMIRA sales in 2013.
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