Abbvie Inc.

AbbVie Inc. has issued an update regarding its preliminary second quarter and full-year 2025 financial guidance, primarily driven by the recognition of acquired IPR&D and milestones expense. For the second quarter of 2025, the company expects to report an $823 million pre-tax acquired IPR&D and milestones expense, resulting in an unfavorable impact of $0.42 per share on both GAAP and adjusted non-GAAP diluted EPS. Consequently, the adjusted diluted EPS guidance for Q2 2025 is now $2.84 - $2.88, and the full-year 2025 adjusted diluted EPS guidance has been updated to $11.67 - $11.87, both inclusive of this Q2 expense. It's important to note that AbbVie typically does not forecast such IPR&D expenses due to their unpredictable timing and occurrence, and previous 2025 guidance had excluded these impacts beyond the first quarter.

**Financial Performance Breakdown:** The core of the update revolves around the specific IPR&D expense. No other detailed financial performance metrics such as revenue, net income, or growth rates were provided in this specific report. The focus is solely on the EPS adjustments due to this one-time-like expense.

**Strategic Initiatives and Business Segment Analysis:** The transcript does not contain information regarding strategic initiatives, performance of specific business segments, or any major operational changes. The mention of IPR&D expense, however, implies ongoing investment in the company's pipeline through collaborations or asset acquisitions.

**Management Commentary and Forward Guidance:** Management's commentary is implicit in the updated guidance, signaling transparency by incorporating the incurred IPR&D expense into their outlook. The updated full-year and Q2 EPS guidance ranges are the primary forward-looking statements provided, explicitly including the impact of the Q2 IPR&D expense. The company reiterates its stance on not forecasting future IPR&D expenses due to their inherent uncertainty.

**Competitive Positioning and Market Trends:** No information regarding competitive positioning or broader market trends was discussed in this specific filing.

**Risk Factors and Concerns Raised:** A significant risk highlighted is the preliminary nature of the Q2 2025 results, which are subject to financial statement closing procedures and could differ from these estimates. Furthermore, the company explicitly lists several general forward-looking risks, including challenges to intellectual property, competition, difficulties in R&D, adverse litigation or government action, changes in laws/regulations, and the impact of global macroeconomic factors (e.g., economic downturns, international conflict, trade disputes). The uncertainty surrounding the future occurrence and timing of IPR&D and milestones expense is also a key concern.

**Analyst Q&A Highlights:** This report does not include any analyst Q&A.