AbbVie 2012 Annual Report Download - page 46

The acquisition of Solvay SA’s U.S. pharmaceuticals business (Solvay) and certain other product rights
for $1.9 billion in February 2010 added several new products, including the rights to AndroGel and
Creon, to AbbVie’s portfolio. Generic competition began in November 2012 for TriCor and is expected
to begin in the second half of 2013 for Niaspan and in the second half of 2013 or early 2014 for
TRILIPIX. As a result, sales for AbbVie’s combined lipid franchise including TriCor, TRILIPIX,
Niaspan and Simcor, which were $2.1 billion in 2012 and $2.5 billion in 2011, are expected to total less
than $1.0 billion in 2013. The decrease in sales of Zemplar from $596 million in 2010 to $383 million in
2012 reflects the impact of changes in reimbursement regulations resulting from health care reform
legislation. Austerity measures implemented by several European countries reduced health care
spending and affected pharmaceuticals pricing in those countries in all years presented.
Strategic Objectives
AbbVie’s long-term strategy is to maximize its existing portfolio through new indications, share gains,
increased reach and geographic expansion in underserved markets while also advancing its new product
pipeline. To successfully execute its long-term strategy, AbbVie will focus on expanding HUMIRA sales,
advancing the pipeline, expanding its presence in emerging markets and managing its product portfolio
to maximize value.
AbbVie expects to continue to drive strong HUMIRA sales growth in several ways. AbbVie seeks to
expand the HUMIRA patient base by applying for regulatory approval of new indications for
HUMIRA, treating conditions such as axial and peripheral spondyloarthritis and uveitis. AbbVie will
also seek to drive HUMIRA sales growth by expanding its market share and its presence in
underserved markets.
Research and development (R&D) efforts will continue to focus a significant portion of expenditures
on compounds for immunology, oncology, neuroscience, pain management, virology, renal disease and
women’s health. AbbVie’s goal is to bring to market products that demonstrate strong clinical
performance for patients and economic value for payors. Current research and development projects
are described in the ‘‘Research and Development’’ section below.
AbbVie plans to continue making investments in key emerging markets, including Brazil, China, Mexico
and Russia. Continued penetration of HUMIRA and other leading products is expected to help drive
growth in these markets.
AbbVie will continue its investment in products with durable sales, while making adjustments as
necessary to increase the value of its product portfolio. AbbVie plans to achieve this objective in a
variety of ways depending on product and circumstances by, for example, identifying supply chain
efficiencies, pursuing additional indications, and optimizing residual value as products reach the end of
exclusivity. AbbVie believes that its approach will allow the company to maintain a strong operating
margin.
Research and Development
R&D innovation and scientific productivity continue to be a key strategic priority for AbbVie. AbbVie’s
long-term success depends to a great extent on its ability to continue to discover and develop
innovative pharmaceutical products and acquire or collaborate on compounds currently in development
by other biotechnology or pharmaceutical companies. AbbVie has a pipeline of more than 20
compounds or indications in Phase II or III development individually or under collaboration or license
agreements. R&D is focused on therapeutic areas that include virology, renal disease, neuroscience,
oncology, immunology, and women’s health, among others.
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