AbbVie 2013 Annual Report Download - page 46

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sales in 2012 reflected higher prices, market share gains, the launch of AndroGel 1.62% in the second
quarter of 2011, and volume growth in the U.S. testosterone replacement market. AndroGel continues
to hold the number one market share position in the U.S. testosterone replacement market, with
approximately 60 percent of the market share. AndroGel 1% sales are expected to be impacted by
generic competition in late 2014.
Global sales of Kaletra declined in 2013 and 2012 primarily due to lower market share resulting from
the impact of competition.
Synthroid sales increased 13 percent and 6 percent in 2013 and 2012, respectively, due to strong brand
loyalty and market leadership, and price.
Sales of Sevoflurane were impacted in both years by generic competition.
Sales of Creon in 2013 and 2012 grew by 17 percent and 6 percent, respectively. Creon maintains
market leadership in the pancreatic enzyme market and continued to capture the vast majority of new
prescription starts in 2013. In the first quarter of 2013, the FDA approved Creon in a 36,000 lipase-unit
dose for patients with exocrine pancreatic insufficiency. Creon 36,000 is the highest dose of pancreatic
therapy currently available.
Sales of Duodopa, AbbVie’s therapy for advanced Parkinson’s disease currently approved in Europe
and other international markets, increased 16 percent on a constant currency basis. Duodopa is
currently under regulatory review in the United States and a regulatory decision is expected in 2014.
Sales for AbbVie’s consolidated lipid franchise, which includes TriCor, TRILIPIX and Niaspan,
declined 50 percent in 2013 and 14 percent in 2012 due to the introduction of generic versions of these
products in the U.S. market and, in 2012, softness in the overall branded cholesterol market. Generic
competition began in November 2012 for TriCor, in July 2013 for TRILIPIX, and in September 2013
for Niaspan. AbbVie expects the negative impact of generic competition on sales to continue in 2014.
Gross Margin
Percent
change
years ended December 31 (in millions) 2013 2012 2011 2013 2012
Gross margin $14,209 $13,872 $12,805 2% 8%
as a % of net sales 76% 75% 73%
The gross profit margin in 2013 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. The increase in
the gross profit margin in 2012 was primarily due to product mix, improved efficiencies, higher prices in
certain geographies, and the favorable impact of foreign currency, partially offset by pricing pressures
in various other markets. The improvement also reflects lower amortization expense for intangible
assets and the impact of restructuring programs implemented in 2011 to realign various manufacturing
operations.
Selling, General and Administrative
Percent
change
years ended December 31 (in millions) 2013 2012 2011 2013 2012
Selling, general and administrative $5,352 $4,989 $5,894 7% (15)%
as a % of net sales 28% 27% 34%
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