What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-08-04 compared with 2025-05-09 · 119 added, 65 removed, 224 unchanged (45% of the section changed)

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The following is a discussion and analysis of the financial condition of AbbVie Inc.

(AbbVie or the company) as of March 31, 2025 and December 31, 2024 and the results of operations for the three months ended March 31, 2025 and 2024.

(AbbVie or the company) as of June 30, 2025 and December 31, 2024 and the results of operations for the three and six months ended June 30, 2025 and 2024.

This commentary should be read in conjunction with the Condensed Consolidated Financial Statements and accompanying notes appearing in Item 1, “Financial Statements and Supplementary Data.”

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Gonzalez as Chairman of the board of directors, effective July 1, 2025, at which time Mr.

Gonzalez will retire from the board.

Gonzalez retired from the board.

AbbVie's products are generally sold worldwide directly to wholesalers, distributors, government agencies, health care facilities, specialty pharmacies and independent retailers from AbbVie-owned distribution centers and public warehouses.

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Financial Results

The company’s financial performance for the three months ended March 31, 2025 included delivering worldwide net revenues of $13.3 billion, operating earnings of $3.7 billion, diluted earnings per share of $0.72 and cash flows from operations of $1.6 billion.

The company’s financial performance for the six months ended June 30, 2025 included delivering worldwide net revenues of $28.8 billion, operating earnings of $8.6 billion, diluted earnings per share of $1.24 and cash flows from operations of $6.8 billion.

Worldwide net revenues increased 7% on a reported basis and 8% on a constant currency basis.

Financial results for the three months ended March 31, 2025 also included the following costs:

Financial results for the six months ended June 30, 2025 also included the following costs:

(i) $3.7 billion related to the amortization of intangible assets;

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AbbVie’s business may be impacted by risks associated with global macroeconomic conditions, including international trade disruptions and disputes as well as trade protection measures.

For example, the U.S.

government has recently imposed broad based tariffs targeting specified countries.

While the impact of these tariffs on AbbVie’s operations to date has not been material, the U.S.

government may in the future pause, reimpose or increase tariffs and foreign governments have and, in the future, may impose retaliatory trade protection measures.

For example, the United States government has recently imposed broad-based tariffs targeting specified countries.

While the impact of these tariffs on AbbVie’s business and results of operations to date has not been material, the United States government may in the future pause, reimpose or increase tariffs and foreign governments have and, in the future, may impose retaliatory trade protection measures.

Any new or additional tariffs, particularly those targeting the pharmaceuticals industry, may increase uncertainties and associated risks and could adversely impact AbbVie’s business and results of operations.

AbbVie is also subject to public and legislative pressure with respect to pharmaceutical pricing.

In the United States, Executive Order 14297, issued on May 12, 2025, directs the Secretary of Health and Human Services (HHS) to pursue most-favored-nation (MFN) pricing, defined as the lowest price in any Organization for Economic Co-operation and Development country with a gross domestic product per capita of at least 60% of that of the United States.

The order directs HHS to implement policies mandating MFN pricing along with other regulatory actions if substantial progress toward voluntary compliance is not achieved.

AbbVie continues to evaluate the potential impact of this executive order, and any new or additional legislation, regulations or executive orders related to pharmaceutical pricing may increase uncertainties and associated risks and could adversely impact AbbVie’s business and results of operations.

On July 4, 2025, the United States government signed into law the One Big Beautiful Bill Act of 2025 (2025 Act).

Included within the 2025 Act are certain new tax provisions, limitations and modifications to existing tax provisions that were previously enacted under the Tax Cuts and Jobs Act of 2017, including rules related to the taxation of income earned outside of the United States and the tax treatment of domestic performed research and development costs.

In addition, the legislation contains various effective dates and transition elections.

The 2025 Act also includes certain new health care provisions related to the orphan drug exclusion of the Inflation Reduction Act of 2022, and Medicaid, which have various effective dates.

AbbVie is currently evaluating the impact of the 2025 Act on its consolidated financial statements.

Research and Development

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Food and Drug Administration (FDA) approved Rinvoq for the treatment of GCA in adult patients.

• In July 2025, AbbVie announced positive topline results from Study 2 of its Phase 3 UP-AA trial for Rinvoq as a monotherapy in adults and adolescents with severe alopecia areata.

2025 Form 10-Q |

• In February 2025, AbbVie initiated a Phase 3 clinical trial to evaluate Qulipta for the preventive treatment of menstrual migraine.

• In June 2025, AbbVie announced positive topline results from its Phase 3 TEMPLE head-to-head study evaluating the tolerability, safety and efficacy of Qulipta compared to the highest tolerated dose of topiramate in adult patients with a history of four or more migraine days per month.

• In May 2025, AbbVie announced that the U.S.

FDA granted accelerated approval for Emrelis (telisotuzumab vedotin-tllv) for the treatment of adult patients with locally advanced or metastatic, non-squamous non-small cell lung cancer with high c-Met protein overexpression who have received a prior systemic therapy.

• In June 2025, AbbVie announced that the global Phase 3 VERONA trial evaluating Venclexta in combination with azacitidine in the treatment of newly diagnosed higher-risk myelodysplastic syndrome did not meet the primary endpoint of overall survival.

No new safety signals were observed.

• In July 2025, AbbVie announced the submission of a supplemental New Drug Application (sNDA) to the U.S.

FDA for the fixed-duration, all oral combination regimen of Venclexta and acalabrutinib in previously untreated patients with chronic lymphocytic leukemia (CLL).

The submission is supported by positive results from the Phase 3 AMPLIFY trial which demonstrated that the combination regimen improved progression-free survival compared to standard chemoimmunotherapy in previously untreated patients with CLL.

• In May 2025, Genmab A/S (Genmab) announced positive topline results from the Phase 3 trial evaluating Epkinly plus rituximab and lenalidomide versus rituximab and lenalidomide alone in adult patients with relapsed or refractory follicular lymphoma.

• In April 2025, AbbVie announced that it submitted a Biologics License Application (BLA) to the U.S.

FDA for approval of trenibotulinumtoxinE (BoNT/E) for the treatment of moderate to severe glabellar lines.

BoNT/E is a first-in-class botulinum neurotoxin serotype E characterized by a rapid onset of action as early as 8 hours after administration and short duration of effect of 2-3 weeks.

If approved, BoNT/E will be the first neurotoxin of its kind available to patients.

FDA for approval of trenibotulinumtoxinE (TrenibotE) for the treatment of moderate to severe glabellar lines.

TrenibotE is a first-in-class botulinum neurotoxin serotype E characterized by a rapid onset of action as early as 8 hours after administration and short duration of effect of 2-3 weeks.

If approved, TrenibotE will be the first neurotoxin of its kind available to patients.

Juvederm Collection

• In June 2025, AbbVie announced that the U.S.

FDA accepted for review the supplemental premarket approval application for Skinvive by Juvederm to reduce neck lines for the improvement of neck appearance.

• In February 2025, AbbVie announced that the U.S.

FDA approved Emblaveo (aztreonam and avibactam), as the first fixed-dose, intravenous, monobactam/β-lactamase inhibitor combination antibiotic to treat complicated intra-abdominal infections, including those caused by Gram-negative bacteria.

• In June 2025, AbbVie announced that the U.S FDA approved a label expansion for Mavyret, an oral pangenotypic direct acting antiviral therapy.

It is now approved for the treatment of adults and pediatric patients three years and older with acute or chronic hepatitis C virus infection immediately at the time of diagnosis.

For a more comprehensive discussion of AbbVie’s products and pipeline, see the company’s Annual Report on Form 10-K for the year ended December 31, 2024.

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June 30, Percent change Six months ended

June 30, Percent change

currency rates At constant

currency rates At actual

currency rates At constant

currency rates

(dollars in millions)

2025 2024 2025 2024

United States

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Three months ended

March 31, Percent change

June 30, Percent change Six months ended

June 30, Percent change

currency rates At constant

currency rates At actual

currency rates At constant

currency rates

(dollars in millions)

2025 2024 2025 2024

Skyrizi United States $ 3,843 $ 2,340 64.3 % 64.3 % $ 6,762 $ 3,996 69.2 % 69.2 %

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Total $ 267 $ 150 77.5 % 76.9 % $ 460 $ 281 63.6 % 63.6 %

Vyalev United States $ 6 $ — n/m n/m

Vyalev United States $ 22 $ — n/m n/m $ 28 $ — n/m n/m

International 76 18 >100.0 % >100.0 % 133 27 >100.0 % >100.0 %

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$ 138 $ 128 8.0 % 8.0 % $ 303 $ 192 57.5 % 57.5 %

International 14 — n/m n/m

International 21 — n/m n/m 35 — n/m n/m

$ 159 $ 128 24.2 % 23.7 % $ 338 $ 192 75.5 % 75.5 %

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Total $ 70 $ 36 93.9 % 92.3 % $ 121 $ 63 92.1 % 93.3 %

Other Oncology United States $ 2 $ — n/m n/m $ 2 $ — n/m n/m

Botox Cosmetic United States $ 410 $ 450 (8.7) % (8.7) % $ 705 $ 839 (15.9) % (15.9) %

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Three months ended

March 31, Percent change

June 30, Percent change Six months ended

June 30, Percent change

currency rates At constant

currency rates At actual

currency rates At constant

currency rates

(dollars in millions)

2025 2024 2025 2024

Juvederm Collection United States $ 105 $ 138 (23.6) % (23.6) % $ 180 $ 244 (25.9) % (25.9) %

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The following discussion and analysis of AbbVie’s net revenues by product is presented on a constant currency basis.

Net revenues for Skyrizi increased 72% for the three months ended March 31, 2025 primarily driven by continued strong market share uptake as well as market growth across all indications.

Net revenues for Rinvoq increased 60% for the three months ended March 31, 2025 primarily driven by continued strong market share uptake as well as market growth across all indications.

Net revenues for Humira decreased 50% for the three months ended March 31, 2025 primarily driven by continued impact of direct biosimilar competition following the loss of exclusivity.

Net revenues for Vraylar increased 10% for the three months ended March 31, 2025 primarily driven by continued market share uptake as well as market growth.

Net revenues for Botox Therapeutic increased 17% for the three months ended March 31, 2025 primarily driven by continued market share uptake as well as market growth.

Net revenues for Ubrelvy increased 18% for the three months ended March 31, 2025 primarily driven by continued market share uptake.

Net revenues for Qulipta increased 48% for the three months ended March 31, 2025 primarily driven by continued market share uptake.

Net revenues for Skyrizi increased 62% for the three months and 66% for the six months ended June 30, 2025 primarily driven by continued strong market share uptake as well as market growth across all indications.

Net revenues for Rinvoq increased 41% for the three months and 49% for the six months ended June 30, 2025 primarily driven by continued strong market share uptake as well as market growth across all indications.

Net revenues for Humira decreased 58% for the three months and 54% for the six months ended June 30, 2025 primarily driven by continued impact of direct biosimilar competition following the loss of exclusivity.

Net revenues for Vraylar increased 16% for the three months and 14% for the six months ended June 30, 2025 primarily driven by continued market share uptake as well as market growth.

Net revenues for Botox Therapeutic increased 14% for the three months and 16% for the six months ended June 30, 2025 primarily driven by continued market share uptake as well as market growth.

Net revenues for Ubrelvy increased 47% for the three months and 33% for the six months ended June 30, 2025 primarily driven by continued market share uptake as well as favorable pricing.

Net revenues for Qulipta increased 77% for the three months and 64% for the six months ended June 30, 2025 primarily driven by continued strong market share uptake.

Net revenues for Imbruvica represent product revenues in the United States and collaboration revenues outside of the United States related to AbbVie’s 50% share of Imbruvica profit.

AbbVie's global Imbruvica revenues decreased 12% for the three months ended

AbbVie's global Imbruvica revenues decreased 10% for the three months and 11%

2025 Form 10-Q |

March 31, 2025 primarily driven by the timing of customer inventory stocking in the prior year, decreased demand and lower market share in the United States as well as decreased collaboration revenues.

Net revenues for Venclexta increased 12% for the three months ended March 31, 2025 primarily driven by continued market share uptake.

Net revenues for Elahere increased greater than 100% for the three months ended March 31, 2025 primarily driven by a full period of Elahere results in 2025 compared to the prior year.

Net revenues for Botox Cosmetic decreased 11% for the three months ended March 31, 2025.

In the United States, Botox Cosmetic net revenues decreased 24% primarily driven by unfavorable pricing due to consumer loyalty program changes and decreased market share.

Internationally, Botox Cosmetic net revenues increased 11% primarily driven by increased consumer demand across certain international markets and the timing of customer inventory stocking.

Net revenues for Juvederm Collection decreased 20% for the three months ended March 31, 2025 primarily driven by decreased global consumer demand and unfavorable pricing due to consumer loyalty program changes in the United States.

for the six months ended June 30, 2025 primarily driven by decreased demand and unfavorable pricing in the United States as well as decreased collaboration revenues.

Net revenues for Venclexta increased 8% for the three months and 10% for the six months ended June 30, 2025 primarily driven by continued market share uptake as well as market growth partially offset by unfavorable pricing.

Net revenues for Elahere increased 24% for the three months and 76% for the six months ended June 30, 2025 primarily driven by increased demand.

Net revenues for the six months ended June 30, 2025 were also favorably impacted by a full period of Elahere results in 2025 compared to the prior year.

Net revenues for Botox Cosmetic decreased 5% for the three months and 8% for the six months ended June 30, 2025.

In the United States, Botox Cosmetic net revenues decreased 9% for the three months and 16% for the six months ended June 30, 2025 primarily driven by lower market share and decreased consumer demand.

Net revenues for the six months ended June 30, 2025 were also impacted by unfavorable pricing due to consumer loyalty program changes in the United States.

Internationally, Botox Cosmetic net revenues increased 1% for the three months and 6% for the six months ended June 30, 2025 primarily driven by increased consumer demand across certain international markets.

Net revenues for Juvederm Collection decreased 24% for the three months and 22% for the six months ended June 30, 2025 primarily driven by decreased global consumer demand.

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Gross margin $ 11,077 $ 10,260 8 % $ 20,418 $ 18,476 11 %

as a % of net revenues 72 % 71 % 71 % 69 %

Gross margin as a percentage of net revenues increased for the three months ended March 31, 2025 compared to the prior year primarily due to increased leverage from net revenues growth, favorable changes in product mix and acquisition and integration costs incurred during the three months ended March 31, 2024 in connection with the ImmunoGen acquisition.

Gross margin as a percentage of net revenues increased for the three and six months ended June 30, 2025 compared to the prior year primarily due to increased leverage from net revenues growth, lower amortization of intangibles and the favorable impact of acquisition and integration costs incurred during the six months ended June 30, 2024 in connection with the ImmunoGen acquisition partially offset by unfavorable changes in product mix.

Selling, General and Administrative

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Selling, general and administrative $ 3,253 $ 3,377 (4) % $ 6,546 $ 6,692 (2) %

as a % of net revenues 21 % 23 % 23 % 25 %

Selling, general and administrative (SG&A) expenses as a percentage of net revenues decreased for the three months ended March 31, 2025 compared to the prior year primarily due to acquisition and integration costs incurred during the three months ended March 31, 2024 in connection with the ImmunoGen acquisition .

Selling, general and administrative (SG&A) expenses as a percentage of net revenues decreased for the three and six months ended June 30, 2025 compared to the prior year.

SG&A expense as a percentage of net revenues for the three and six months ended June 30, 2025 was favorably impacted by leverage from revenue growth partially offset by increased restructuring charges.

SG&A expense for the six months ended June 30, 2025 was also favorably impacted by acquisition and integration costs incurred during the six months ended June 30, 2024 in connection with the ImmunoGen acquisition .

Research and Development

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Research and development $ 2,131 $ 1,948 9 % $ 4,198 $ 3,887 8 %

as a % of net revenues 14 % 13 % 15 % 15 %

Research and development (R&D) expenses as a percentage of net revenues decreased for the three months ended March 31, 2025 compared to the prior year primarily due to acquisition and integration costs incurred during the three months ended March 31, 2024 in connection with the ImmunoGen acquisition partially offset by increased funding to support all stages of the company’s pipeline assets.

Research and development (R&D) expenses as a percentage of net revenues increased for the three months and were flat for the six months ended June 30, 2025 compared to the prior year.

R&D expense percentage for the three and six months ended June 30, 2025 was unfavorably impacted by increased funding to support all stages of the company’s pipeline assets.

R&D expense percentage for the six months ended June 30, 2025 was also favorably impacted by acquisition and integration costs incurred during the six months ended June 30, 2024 in connection with the ImmunoGen acquisition.

2025 Form 10-Q |

Acquired IPR&D and Milestones

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Acquired IPR&D and milestones $ 823 $ 937 $ 1,071 $ 1,101

2025 Form 10-Q |

Acquired IPR&D and milestones expense for the three and six months ended June 30, 2025 included charges related to the upfront payments of $350 million to Gubra A/S for an exclusive global license to develop and commercialize GUB014295 (ABBV-295) and $335 million to ADARx Pharmaceuticals, Inc.

for exclusive options to global license rights to develop and commercialize ADARx’s small interfering RNA (siRNA) therapeutics.

Acquired IPR&D and milestones expense for the three and six months ended June 30, 2024 included a charge related to the upfront payment of $250 million to acquire Celsius Therapeutics.

See Note 4 to the condensed consolidated financial statements for additional information.

Other Non-Operating Expenses (Income)

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(in millions) 2025 2024 2025 2024

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Other expense, net 2,639 1,345 4,080 1,931

Interest expense increased for the three months ended March 31, 2025 compared to the prior year primarily due to a higher average debt balance .

Interest income decreased for the three months ended March 31, 2025 compared to the prior year primarily due to a lower average cash and cash equivalents balance.

Other expense, net included charges related to changes in fair value of contingent consideration liabilities of $1.5 billion for the three months ended March 31, 2025 and $660 million for the three months ended March 31, 2024.

Interest expense increased for the three and six months ended June 30, 2025 compared to the prior year primarily due to a higher average debt balance .

Interest income decreased for the three and six months ended June 30, 2025 compared to the prior year primarily due to a lower average cash and equivalents balance.

Other expense, net included charges related to changes in fair value of contingent consideration liabilities of $2.8 billion for the three months and $4.3 billion for the six months ended June 30, 2025 and $1.5 billion for the three months and $2.1 billion for the six months ended June 30, 2024.

The fair value of contingent consideration liabilities is impacted by the passage of time and multiple other inputs, including the probability of success of achieving regulatory milestones, discount rates, the estimated amount of future sales of the acquired products and other market-based factors.

For the three months ended March 31, 2025, the change in fair value reflected higher estimated Skyrizi sales, the passage of time and lower discount rates.

For the three months ended March 31, 2024, the change in fair value reflected higher estimated Skyrizi sales and the passage of time, partially offset by higher discount rates.

For the three and six months ended June 30, 2025, the change in fair value reflected higher estimated Skyrizi sales, the passage of time and lower discount rates.

For the three and six months ended June 30, 2024, the change in fair value reflected higher estimated Skyrizi sales and the passage of time, partially offset by higher discount rates.

Income Tax Expense

The effective tax rate was 22% for the three months ended March 31, 2025 and 2024.

The effective tax rate was 39% for the three months and 31% for the six months ended June 30, 2025 compared to 36% for the three months and 30% for the six months ended June 30, 2024.

The effective tax rate in each period differed from the U.S.

statutory tax rate of 21% principally due to the impact of foreign operations which reflects the impact of lower income tax rates in locations outside the United States, changes in fair value of contingent consideration and business development activities.

The increase in the effective tax rate for the three and six months ended June 30, 2025 over the prior year was primarily due to changes in fair value of contingent consideration offset by changes in jurisdictional mix of earnings and business development activities.

2025 Form 10-Q |

FINANCIAL POSITION, LIQUIDITY AND CAPITAL RESOURCES

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Financing activities (3,968) 4,722

Operating cash flows for the three months ended March 31, 2025 decreased compared to the prior year primarily due to the timing of working capital and payments related to litigation matters, partially offset by increased results from operations driven by higher net revenues and ImmunoGen acquisition-related cash expenses during the three-months ended March 31, 2024.

Investing cash flows for the three months ended March 31, 2025 included $210 million cash consideration paid to acquire Nimble Therapeutics, Inc.

offset by cash acquired of $6 million, payments made for other acquisitions and investments of $334 million and capital expenditures of $235 million.

Investing cash flows for the three months ended March 31, 2024 included $9.8 billion cash consideration paid to acquire ImmunoGen offset by cash acquired of $591 million, payments made for other acquisitions and investments of $190 million and capital expenditures of $193 million.

Financing cash flows for the three months ended March 31, 2025 included the issuance of unsecured senior notes totaling $4.0 billion aggregate principal and the repayment of $3.0 billion aggregate principal of 3.80% senior notes.

Financing cash flows for the three months ended March 31, 2024 included the issuance of unsecured senior notes totaling $15.0 billion aggregate principal which were used to finance the acquisitions of ImmunoGen and Cerevel Therapeutics.

Additionally, financing cash flows included the issuance and repayment of $5.0 billion under the term loan credit agreement and repayment of $99 million of secured term notes assumed from ImmunoGen in conjunction with the acquisition.

2025 Form 10-Q |

Financing cash flows also included cash dividend payments of $2.9 billion for the three months ended March 31, 2025 and $2.8 billion for the three months ended March 31, 2024.

Operating cash flows for the six months ended June 30, 2025 increased compared to the prior year primarily due to increased results from operations driven by higher net revenues and lower acquisition-related cash expenses partially offset by higher payments related to litigation matters and higher payments of contingent consideration liabilities.

Investing cash flows for the six months ended June 30, 2025 included payments made for other acquisitions and investments of $1.3 billion and capital expenditures of $504 million.

Investing cash flows for the six months ended June 30, 2024 included $9.8 billion cash consideration paid to acquire ImmunoGen offset by cash acquired of $591 million, payments made for other acquisitions and investments of $1.0 billion and capital expenditures of $434 million.

Financing cash flows for the six months ended June 30, 2025 included the issuance of unsecured senior notes totaling $4.0 billion aggregate principal and $2.0 billion under the 364-day term loan credit agreement.

Financing cash flows also included the repayment of $3.0 billion aggregate principal of 3.80% senior notes and $3.8 billion aggregate principal of 3.60% senior notes.

Financing cash flows for the six months ended June 30, 2024 included the issuance of unsecured senior notes totaling $15.0 billion aggregate principal which were used to finance the acquisitions of ImmunoGen and Cerevel Therapeutics.

Additionally, financing cash flows included the issuance and repayment of $5.0 billion under the term loan credit agreement and repayments of €1.5 billion aggregate principal amount of 1.38% senior euro notes, €700 million aggregate principal amount of 1.25% senior euro notes, $1.0 billion aggregate principal amount of 3.85% senior notes and $99 million of secured term notes assumed from ImmunoGen in conjunction with the acquisition.

Financing cash flows also included cash dividend payments of $5.8 billion for the six months ended June 30, 2025 and $5.5 billion for the six months ended June 30, 2024.

The increase in cash dividend payments was primarily driven by the increase in the quarterly dividend rate.

On February 13, 2025, the company announced that its board of directors declared a quarterly cash dividend of $1.64 per share for stockholders of record at the close of business on April 15, 2025, payable on May 15, 2025.

On June 20, 2025, the company announced that its board of directors declared a quarterly cash dividend of $1.64 per share for stockholders of record at the close of business on July 15, 2025, payable on August 15, 2025.

The timing, declaration, amount of and payment of any dividends by AbbVie in the future is within the discretion of its board of directors and will depend upon many factors, including AbbVie’s financial condition, earnings, capital requirements of its operating subsidiaries, covenants associated with certain of AbbVie’s debt service obligations, legal requirements, regulatory constraints, industry practice, ability to access capital markets and other factors deemed relevant by its board of directors.

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On February 16, 2023, AbbVie’s board of directors authorized a $5.0 billion increase to the existing stock repurchase authorization.

AbbVie repurchased 3 million shares for $606 million during the three months ended March 31, 2025 and 5 million shares for $959 million during the three months ended March 31, 2024.

During the three months ended March 31, 2025 and 2024, the company issued and redeemed commercial paper.

The balance of commercial paper borrowings outstanding was $1.6 billion as of March 31, 2025 and there were no amounts outstanding as of December 31, 2024.

AbbVie repurchased 3 million shares for $606 million during the six months ended June 30, 2025 and 5 million shares for $959 million during the six months ended June 30, 2024.

During the six months ended June 30, 2025 and 2024, the company issued and redeemed commercial paper.

The balance of commercial paper borrowings outstanding was $3.6 billion as of June 30, 2025, of which $2.0 billion had original maturities greater than three months.

There were no commercial paper borrowings outstanding as of December 31, 2024.

AbbVie may issue additional commercial paper or retire commercial paper to meet liquidity requirements as needed.

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AbbVie may also utilize factoring arrangements to mitigate credit risk, although the receivables included in such arrangements have historically not been a significant amount of total outstanding receivables.

2025 Form 10-Q |

Credit Facility, Access to Capital and Credit Ratings

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The revolving credit facilities are available to support AbbVie’s commercial paper program and enable the company to borrow funds to meet liquidity requirements on an unsecured basis at variable interest rates and contain various covenants.

At March 31, 2025, the company was in compliance with all covenants, and commitment fees under the credit facility were insignificant.

No amounts were outstanding under the company's credit facility as of March 31, 2025 and December 31, 2024.

Subsequent to March 31, 2025, the company entered into a $4.0 billion 364-day term loan credit agreement.

No amounts were borrowed under the term loan credit agreement as of the date of filing of this Quarterly Report on Form 10-Q.

At June 30, 2025, the company was in compliance with all covenants, and commitment fees under the credit facility were insignificant.

No amounts were outstanding under the company's credit facility as of June 30, 2025 and December 31, 2024.

In April 2025, the company entered into a $4.0 billion 364-day term loan credit agreement.

In May 2025, the company borrowed $2.0 billion under this term loan credit agreement which was outstanding and included in short-term borrowings on the condensed consolidated balance sheet as of June 30, 2025.

In December 2023, in connection with the acquisitions of ImmunoGen and Cerevel Therapeutics, AbbVie entered into a $9.0 billion 364-day bridge credit agreement and $5.0 billion 364-day term loan credit agreement.

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At the current time, the company believes it has sufficient financial flexibility to issue debt, enter into other financing arrangements and attract long-term capital on acceptable terms to support the company’s growth objectives.

2025 Form 10-Q |

Credit Ratings

There were no changes in the company’s credit ratings during the three months ended March 31, 2025.

There were no changes in the company’s credit ratings during the six months ended June 30, 2025.

Unfavorable changes to the ratings may have an adverse impact on future financing arrangements;

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A summary of the company’s significant accounting policies is included in Note 2, “Summary of Significant Accounting Policies” in AbbVie's Annual Report on Form 10-K for the year ended December 31, 2024.

There have been no significant changes in the company’s application of its critical accounting policies during the three months ended March 31, 2025.

There have been no significant changes in the company’s application of its critical accounting policies during the six months ended June 30, 2025.

FORWARD-LOOKING STATEMENTS

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AbbVie undertakes no obligation, and specifically declines, to release publicly any revisions to forward-looking statements as a result of subsequent events or developments, except as required by law.

2025 Form 10-Q |

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis