AbbVie 2014 Annual Report Download - page 11

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13NOV201221352027
of the innovator biologic as compared to the sales erosion caused by generic versions of small molecule
pharmaceutical products.
AbbVie owns or has licensed rights to a substantial number of patents and patent applications. AbbVie
licenses or owns a patent portfolio of thousands of patent families, each of which includes United States
patent applications and/or issued patents, and may also contain the non-United States counterparts to
these patents and applications.
These patents and applications, including various patents that expire during the period 2015 to 2035,
in aggregate are believed to be of material importance in the operation of AbbVie’s business. However,
AbbVie believes that no single patent, license, trademark (or related group of patents, licenses, or
trademarks), except for those related to adalimumab (which is sold under the trademark HUMIRA), are
material in relation to the company’s business as a whole. The United States composition of matter (that is,
compound) patent covering adalimumab is expected to expire in December 2016, and the equivalent
European Union patent is expected to expire in the majority of European Union countries in April 2018.
In addition, the following patents, licenses, and trademarks are significant: those related to lopinavir/
ritonavir (which is sold under the trademarks Kaletra and Aluvia), those related to ombitasvir/paritaprevir/
ritonavir and dasabuvir (which are sold under the trademarks VIEKIRA PAK, VIEKIRAX, EXVIERA, and
HOLKIRA PAK), and those related to testosterone (which is sold under the trademark AndroGel). The United
States composition of matter patent covering lopinavir is expected to expire in 2016. A principal United
States non-composition of matter patent covering lopinavir/ritonavir is expected to expire in 2016. The
United States composition of matter patents covering ombitasvir, paritaprevir and dasabuvir are expected to
expire in 2032, 2031 and 2029, respectively. The principal United States non-composition of matter patent
covering AndroGel 1 percent is expected to expire in 2021, including pediatric exclusivity. Agreements that
may affect exclusivity are discussed in Item 7, ‘‘Management’s Discussion and Analysis of Financial
Condition and Results of Operations—Results of Operations.’’
AbbVie may rely, in some circumstances, on trade secrets to protect its technology. However, trade
secrets are difficult to protect. AbbVie seeks to protect its technology and product candidates, in part, by
confidentiality agreements with its employees, consultants, advisors, contractors, and collaborators. These
agreements may be breached and AbbVie may not have adequate remedies for any breach. In addition,
AbbVie’s trade secrets may otherwise become known or be independently discovered by competitors. To
the extent that AbbVie’s employees, consultants, advisors, contractors, and collaborators use intellectual
property owned by others in their work for the company, disputes may arise as to the rights in related or
resulting know-how and inventions.
Marketing, Sales, and Distribution Capabilities
AbbVie utilizes a combination of dedicated commercial resources, regional commercial resources and
distributorships to market, sell, and distribute its products worldwide.
AbbVie directs its primary marketing efforts toward securing the prescription, or recommendation, of
its brand of products by physicians, key opinion leaders, and other health care providers. Managed care
providers (for example, health maintenance organizations and pharmacy benefit managers), hospitals, and
state and federal government agencies (for example, the United States Department of Veterans Affairs and
the United States Department of Defense) are also important customers. AbbVie also markets directly to
consumers themselves, although in the United States all of the company’s products must be sold pursuant
to a prescription. Outside of the United States, AbbVie focuses its marketing efforts on key opinion leaders,
payors, physicians, and country regulatory bodies. AbbVie also provides patient support programs closely
related to its products.
In 2014, AbbVie’s products were sold in over 170 countries. AbbVie’s products are generally sold
worldwide directly to wholesalers, distributors, government agencies, health care facilities, specialty
2014 Form 10-K 5