AbbVie 2014 Annual Report Download - page 47

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13NOV201221352027
2013, and the moderation of market growth experienced in 2012. AndroGel 1% sales are expected to be
impacted by generic competition in early 2015.
Global sales of Kaletra declined in 2014 and 2013 primarily due to lower market share resulting from
the impact of increasing competition in the HIV marketplace.
Sales for Synagis increased 9 percent in both 2014 and 2013 primarily due to increased product uptake
in 2014 and 2013 compared to 2013 and 2012, respectively.
Synthroid sales increased 14 percent and 13 percent in 2014 and 2013, respectively, due to strong
brand loyalty and market leadership, and favorable pricing.
Sales of Sevoflurane, which were relatively flat in 2014 and declined 4 percent in 2013, continued to
be impacted by generic competition.
Sales of Creon in 2014 and 2013 grew by 25 percent and 17 percent, respectively, primarily driven by
market growth and higher market share. Creon maintains market leadership in the pancreatic enzyme
market.
Sales for AbbVie’s consolidated lipid franchise, which includes TriCor, Trilipix, Niaspan, Simcor and
Advicor, declined 70 percent in 2014 and 50 percent in 2013 due to the introduction of generic versions of
these products in the U.S. market. Generic competition began in November 2012 for TriCor, July 2013 for
Trilipix, and September 2013 for Niaspan.
Sales of Duodopa, AbbVie’s therapy for advanced Parkinson’s disease approved in Europe and other
international markets, increased 25 percent in 2014 and 16 percent in 2013. Duopa’s regulatory submission
in the United States was approved by the FDA in January 2015.
AbbVie launched its HCV regimen, VIEKIRA PAK, in the United States following FDA approval in
mid-December. Sales of VIEKIRA PAK reflect the shipment of launch quantities into the market to support
full commercial launch in January 2015. The European Commission granted marketing authorizations for
AbbVie’s HCV regimen, VIEKIRAX (ombitasvir/paritaprevir/ritonavir tablets) + Exviera (dasabuvir tablets), in
January 2015. AbbVie expects its HCV regimen to be a significant contributor to sales growth in 2015.
Gross Margin
Percent
change
years ended December 31 (in millions) 2014 2013 2012 2014 2013
Gross margin $15,534 $14,209 $13,872 9% 2%
as a % of net sales 78% 76% 75%
The gross margin for 2014, 2013 and 2012 reflected the favorable impact of product mix across the
product portfolio, including HUMIRA, operational efficiencies, price increases, and lower amortization
expense for intangible assets, partially offset by the effect of unfavorable foreign exchange rates and, in
2014 and 2013, the loss of exclusivity for the lipid franchise. Gross margin in 2014 also includes royalty
income of $81 million relating to prior periods as a result of the settlement of a licensing arrangement,
partially offset by a $37 million impairment charge for an intangible asset.
Selling, General and Administrative
Percent
change
years ended December 31 (in millions) 2014 2013 2012 2014 2013
Selling, general and administrative $7,724 $5,352 $4,989 44% 7%
as a % of net sales 39% 28% 27%
2014 Form 10-K 41