AbbVie 2013 Annual Report Download - page 24

• changes in medical reimbursement policies and programs;
• multiple legal and regulatory requirements that are subject to change and that could restrict
AbbVie’s ability to manufacture, market, and sell its products;
• differing local product preferences and product requirements;
• trade protection measures and import or export licensing requirements;
• difficulty in establishing, staffing, and managing operations;
• differing labor regulations;
• potentially negative consequences from changes in or interpretations of tax laws;
• political and economic instability, including sovereign debt issues;
• price and currency exchange controls, limitations on participation in local enterprises,
expropriation, nationalization, and other governmental action;
• inflation, recession and fluctuations in interest rates;
• potential deterioration in the economic position and credit quality of certain non-U.S. countries,
including in Europe;
• compulsory licensing or diminished protection of intellectual property; and
• potential penalties or other adverse consequences for violations of anti-corruption, anti-bribery
and other similar laws and regulations, including the United States Foreign Corrupt Practices
Act and the United Kingdom Bribery Act.
Events contemplated by these risks may, individually or in the aggregate, have a material adverse effect
on AbbVie’s revenues and profitability.
AbbVie may acquire other businesses, license rights to technologies or products, form alliances, or dispose of
assets, which could cause it to incur significant expenses and could negatively affect profitability.
AbbVie may pursue acquisitions, technology licensing arrangements, and strategic alliances, or
dispose of some of its assets, as part of its business strategy. AbbVie may not complete these
transactions in a timely manner, on a cost-effective basis, or at all, and may not realize the expected
benefits. If AbbVie is successful in making an acquisition, the products and technologies that are
acquired may not be successful or may require significantly greater resources and investments than
originally anticipated. AbbVie may not be able to integrate acquisitions successfully into its existing
business and could incur or assume significant debt and unknown or contingent liabilities. AbbVie
could also experience negative effects on its reported results of operations from acquisition or
disposition-related charges, amortization of expenses related to intangibles and charges for impairment
of long-term assets. These effects could cause a deterioration of AbbVie’s credit rating and result in
increased borrowing costs and interest expense.
Additionally, changes in AbbVie’s structure, operations, revenues, costs, or efficiency resulting from
major transactions such as acquisitions, divestitures, mergers, alliances, restructurings or other strategic
initiatives, may result in greater than expected costs, may take longer than expected to complete or
encounter other difficulties, including the need for regulatory approval where appropriate.
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