AbbVie 2014 Annual Report Download - page 142

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16MAR201518185354
13NOV201221352027
In addition to our exceptional financial performance, AbbVie delivered operational efficiencies and improvements
in gross margin. Further, AbbVie continued to execute on our commercial, regulatory and clinical objectives, including
obtaining U.S. Food and Drug Administration (FDA) approval in December 2014 for our interferon-free HCV program for
genotype one patients.
AbbVie also made significant progress advancing our pipeline, including: the successful completion of several
late-stage clinical trials, including the daclizumab and Humira hidradenitis suppurativa registrational programs; the
initiation of a number of promising Phase 3 programs, including several Phase 3 studies of our PARP-inhibitor, veliparib,
in solid tumors such as breast and lung cancer, and our Bcl-2 inhibitor, ABT-199, in hematologic malignancies. We also
made significant advancements with our next-generation HCV program, initiating a broad Phase 2b program. We also
advanced a number of early-stage assets into mid-stage development, including our DVD-Ig platform.
Additional Highlights
• In 2014, AbbVie delivered Humira sales of $12.5 billion, an increase of nearly 19% compared to 2013 on a
constant currency basis. Humira’s performance was driven by market growth across therapeutic categories
and geographies, approval of new indications, and market share gains. Sales growth also was driven by
strong performance from other key brands including Synagis, Synthroid, Creon and Duodopa.
• With a record number of programs currently in mid- and late-stage development spanning large and growing
specialty categories, in 2014 we continued to advance our compelling R&D pipeline. This includes numerous
data and regulatory milestones and phase transitions.
• We further enhanced our pipeline by announcing a strategic collaboration with Infinity Pharmaceuticals, Inc.
to develop and commercialize duvelisib (IPI-145) for the treatment of blood cancers, and we entered into a
novel R&D collaboration with Calico Life Sciences LLC, a life sciences company backed by Google Inc., to
discover, develop, and bring to market new therapies for patients with age-related diseases.
Components of our Compensation Program
The compensation committee oversees our executive compensation program, which includes several
compensation elements that have each been tailored to incentivize and reward a specific aspect of company
performance the board believes is central to delivering long-term stockholder value. Key components of our
compensation program are listed below.
Base Salary
Short-Term
Incenves
Long-Term
Incenves
Established relave to market median based on
each NEO's performance, skills and experience, and
internal equity
Performance Incenve Plan (PIP)
Based on performance measures such as:
• Adjusted diluted EPS
• Adjusted net sales
• Adjusted income before taxes
• Adjusted return on assets
• Strategic and leadership goals
75% Performance-vested restricted stock
•
Adjusted return on equity
25% Non-qualified stock opons
22 2015 Proxy Statement
EXECUTIVE COMPENSATION