Finance News Archives - Page 19 of 66

November 2, 2022

‘The worst is behind us’: Hong Kong hosts top bankers for finance summit

Hong Kong
CNN Business enterprise
—

Hong Kong leader John Lee sought to drum up confidence in the city’s long term as a world wide monetary hub on Wednesday, as he welcomed some of Wall Street’s major executives to its biggest global function in years.

Speaking at an investment summit that has captivated additional than 200 members from 20 international locations, the city’s chief executive mentioned that it was “opening as soon as again” for global company after a lot more than two and a fifty percent decades of arduous pandemic restrictions.

As he dealt with some of the executives in attendance, such as Goldman Sachs

(GS) CEO David Solomon, Morgan Stanley

(MS) CEO James Gorman, UBS

(UBS) chairman Colm Kelleher, HSBC

(HSBC) CEO Noel Quinn and Conventional Chartered

(SCBFF) CEO Invoice Winters, the authorities chief was insistent in reaffirming his intention to continue to keep the former British colony competitive for global finance.

“We were, we are and we will continue to be one particular of the world’s top economical centers,” Lee vowed. “You can acquire that to the lender.”

Lee also sought to reassure executives that Hong Kong would preserve a unique job to that of mainland China, saying that central government officers experienced outlined their assistance for the town retaining its exceptional situation as a gateway in between East and West.

China’s latest 5-year system features aims to enhance the city’s role as an intercontinental trade, financial, shipping and aviation center, Lee claimed. “The worst is powering us.”

Solomon, Gorman and Kelleher, who took to the stage for a panel shortly right after Lee’s remarks, did not remark specifically on the city’s reopening. But Kelleher pointed out that “whilst we’re all very professional-China,” the financial institution was “waiting for zero-Covid to open up in China and see what will take place.”

Goldman Sachs CEO David Solomon speaking in Hong Kong on Wednesday. (Kevin Broad/CNN)

In September, Hong Kong lifted quarantine specifications that experienced largely isolated the town, choked economic activity, and fueled a historic brain drain. Mainland China, however, however has a mandate in location for most inbound travelers to self-isolate for at minimum 7 days, underneath its stringent “zero-Covid plan.”

That contrast was highlighted Wednesday as mainland Chinese officers — such as People’s Bank of China Governor Yi Gang — resolved the convention in pre-recorded online video remarks, fairly than attending in individual.

Hong Kong’s financial system is greatly reliant on economical services. In 2020, the sector contributed $76 billion — around 23{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of its GDP, Lee said.

In an job interview with CNN Business, DBS Hong Kong CEO Sebastian Paredes referred to as the present of assistance from the city’s leading brass “a tangible demonstration that Hong Kong is back.”

“The men and women that have flown into Hong Kong — the world-wide CEOs of insurance coverage firms and private fairness businesses and banking institutions and the rest — display that Hong Kong is a pretty crucial global fiscal centre,” he claimed.

“We’ve been shut for as well extended,” he extra, noting that some constraints continue to be, like controls on the border with mainland China. “But as we development, at least we are opening internationally,” mentioned Paredes. “We are hopeful.”

November 1, 2022

FINANCE | How should you pay for short-term financial goals? | Breaking News

As you go as a result of existence, you will probably have extended- and brief-time period economical plans. But how will your approaches for meeting your very long-term goals vary from individuals wanted for your shorter-expression types?

If you are like most folks, your greatest lengthy-term intention is obtaining a relaxed retirement. And for this objective, a widespread system is putting absent cash in tax-advantaged retirement vehicles, this sort of as your 401(k) and IRA.

So, how should really you go about planning for shorter-expression objectives, these kinds of as a relatives getaway, household renovation, marriage or major order?

For starters, ascertain what your intention is, how a great deal you can expend on it and when you will need the income. Even if you cannot pinpoint a precise sum, you can establish a superior estimate. Of class, the sooner you start this process, the better off you will be, mainly because you will have far more time to save.

Your up coming selection entails the way in which you conserve for your limited-phrase aim. Exclusively, what personal savings or financial investment motor vehicles need to you use? The solution will be distinctive for anyone, but you have to have to make absolutely sure that your investments align with your risk tolerance and time horizon. And you are going to want to ensure, as substantially as doable, that a certain total of money is out there for you at the certain time you’ll need it.

If you are not equipped to preserve plenty of to arrive at a brief-time period target, you have other options — you can borrow what you need, or you can likely offer investments to cover the value. How can you come to a decision which alternative is most effective?

To help make up your brain, you’ll very first want to consider some of the most typical borrowing choices: credit cards, dwelling equity loans, personal loans and margin loans. (A margin mortgage lets you borrow in opposition to the benefit of investments you presently own). How could possibly each individual of these loans healthy into your over-all money tactic? Will the reimbursement schedule work with your money flow and spending budget?

You will then want to assess the expenditures and advantages of borrowing, in what ever kind, against providing investments. For example, if you can borrow at a lessen curiosity fee compared to the return you feel you can get from your investments, borrowing may possibly be a reasonable alternative. You are going to also want to consider other variables, this sort of as your credit rating score, taxes, expenses linked with marketing investments and time necessary to repay money owed. If, for instance, advertising investments will bring about a massive volume of taxes, borrowing might be preferable. You are going to also want to take into account whether there is a penalty or high costs involved with marketing investments. In addition, if you have a long time horizon for a personal loan, you may well want to promote investments to steer clear of having to pay desire for a extended period of time, and hence driving up the general value of borrowing. At last, continue to keep in head that you may perhaps have crafted an investment blend developed to align with your aims and hazard tolerance. If you had been to offer any of these investments to meet short-time period demands, you would want to take into consideration the need to have to rebalance your portfolio to preserve your preferred asset allocation.

As you can see, there’s a lot to consider about when it comes to paying out for brief-term ambitions. But by thoroughly analyzing your selections, you can make the selections that are correct for your requires.

Jennifer Barrett (AAMS) is a neighborhood Edward Jones Monetary Advisor.

225-612-0413 | jennifer.barrett@edwardjones.com

Edward Jones. Member SIPC.

Edward Jones, its staff members and fiscal advisors are not estate planners and cannot deliver tax or lawful assistance. You ought to talk to your estate-organizing attorney or experienced tax advisor about your scenario.

October 31, 2022

Agricultural finance platform offers up to 13pc returns

Financial conditions are deteriorating throughout Europe, when mounting home finance loan charges are established to dampen the property current market. Investors seeking to shore up their portfolio absent from the volatility of the inventory marketplace now have a obstacle on their hands.

This is where by Lande Finance arrives in. Introduced in 2019, the Latvia-headquartered peer-to-peer lending system specialises in agricultural finance. European traders, which includes people from the British isles, can lend to modest- and medium-sized (SME) farmers, with the financial loans secured against collateral these as land, grain or machinery.

This is an moral investment decision products that presents a great deal-desired finance to Europe’s farmers, though providing traders practical portfolio diversification and inflation-beating returns of up to 13 for every cent.

Browse far more: Farmers are progressively looking to alternative finance

“When we analysed the market place, we observed that there are numerous authentic estate platforms and payday loan providers but we assumed that P2P traders could like a new product or service and asset course,” suggests Nikita Goncars, chief executive at Lande Finance.

“It’s a distinct portion of the overall economy. Grain and agriculture are a fundamental human need. Although home deals may perhaps slow down for the duration of the disaster, you just cannot hold off food items ingestion.”

The war in Ukraine has triggered the rate of fertiliser, gas and grain to surge, which has produced a mammoth obstacle for Europe’s farmers.

“As a end result of higher selling prices, farmers need additional functioning capital to start out the year,” says Goncars. “One of the goods we are implementing is named ‘buy now, spend at harvest’ – it is a minimal like ‘buy now, pay out later’, whereby farmers can attain finance from us to acquire their fertiliser at the start off of the time and then repay us when they’ve marketed the grains.”

Study a lot more: P2P property loan companies pioneer inexperienced alter

This signifies that buyers can do social great although earning bumper returns.

“There was a large report commissioned by the European Financial investment Lender on creditworthy SME farmers which showed they are underfinanced by €46bn (£39.8bn),” Goncars describes.

“Banks can not fill this funding hole even if they desired to due to stricter laws pursuing the 2008/9 fiscal disaster, so it is down to the crowdfunding sector to address this situation.”

Lande Finance draws in buyers from all in excess of Europe, such as the British isles. In actuality, two of the platform’s 5 greatest substantial-internet-worth investors appear from the Uk, even with the organization in no way possessing marketed by itself in the region to day.

Examine more: Over fifty percent of P2P traders look at ESG when investing in the sector

Any person can make investments in Lande Finance, with a minimum threshold of just €50, although the ordinary financial commitment dimensions tends to be all-around €3,000.

Impressively, Lande Finance has been rewarding from the commence and used the proceeds from its lending functions to make its platform. It has now lifted more equity funding from angel buyers to expand into other international locations.

It has recognized 12 potential markets in Europe for its expansion designs, with Romania initial on the listing for a start in the spring.

Traders can be even more reassured by the reality that Lande Finance has obtained the pretty major ranking from British isles-primarily based P2P ratings and investigate firm 4th Way.

4th Way heralded the platform’s substantial protect towards losses, specifically provided the higher curiosity charges on offer.

“This is a massive responsibility for us but we enjoy it,” states Goncars.

October 30, 2022

7 Stories You Need to See

A roundup of the week’s most newsworthy fiscal marketplace push releases from PR Newswire

NEW YORK, Oct. 28, 2022 /PRNewswire/ — With countless numbers of push releases revealed just about every week, it can be hard to maintain up with all the things on PR Newswire. To support journalists masking the finance market continue to be on best of the week’s most newsworthy and preferred releases, here’s a roundup of tales from the week that should not be skipped.

The listing below includes the headline (with a url to the full text) and an excerpt from each and every story. Click on on the press release headlines to accessibility accompanying multimedia property that are out there for download.

Wages Have Unsuccessful to Match Inflation, 65{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of Employed Consumers are Dwelling Paycheck to Paycheck
Anuj Nayar, LendingClub’s Economic Overall health Officer, states, “Becoming employed is no more time sufficient for the every day American. Wage advancement has been inadequate, leaving a lot more individuals than ever with minimal to very little remaining over soon after managing every month expenditures.”
Approximately Fifty percent A Million Promises Have Been Filed Next Hurricane Ian
Irrespective of sizeable damage to houses, businesses, and motor vehicles subsequent Hurricane Ian, NICB encourages citizens to get their time and not try to accelerate the rebuilding procedure in buy to steer clear of getting cheated.
As 2022 M&A Exercise Returns to Pre-Pandemic Concentrations, Green Dealmaking Gains Steam
Jens Kengelbach, BCG’s global head of M&A, claims, “The variety of ESG-targeted bargains has been steadily climbing for 20 many years, and the amount of environmental-related promotions has doubled. Beyond the regular motivations, sustainability is getting value as a reason to purchase or divest corporations.”
US Client Confidence Declined in Oct
“On the lookout forward, inflationary pressures will proceed to pose robust headwinds to shopper self confidence and paying, which could end result in a complicated vacation season for stores,” mentioned Lynn Franco, Senior Director of Economic Indicators at The Convention Board.
PayPal Introduces Far more Secure Payments with Passkeys
Passkeys are built to change passwords and allow seamless logins for individuals throughout products and platforms.
Globant Launches WaaSabi Platform, Enabling Customers to Add Digital Wallets on Any Digital Experience
WaaSabi is a B2B fintech answer with much more than 42 features in a one API that offers plug-and-enjoy features with payment and services providers, letting providers to supply the e-wallet practical experience that very best fits their industry and regional requirements.
Savvy Ladies partners with Fiscal Exercise Group to start its Financial Awareness Plan of Courses, furthering its Mission to Empower Women As a result of Totally free Monetary Schooling
These interactive economical classes will help women achieve self-assurance and make informed economic conclusions where ever they are on their fiscal journey.

Read extra of the most recent finance-connected releases from PR Newswire and remain caught up on the best press releases by following @PRNfinance on Twitter.

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October 29, 2022

Stocks surge as Apple boom outweighs Amazon miss

U.S. equities rallied Friday, as an earnings defeat from Apple assisted shares elbow their way previous a 7 days of Wall Street misses for Large Tech.

The S&P 500 (^GSPC) gained 2.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. The Dow Jones Industrial Average (^DJI) bounced extra than 800 factors, or 2.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, to a two-thirty day period significant, as it also notched a fourth-straight week of gains and its ideal week of the yr. The tech-hefty Nasdaq Composite (^IXI) rose 2.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. The moves came even as Treasury yields climbed back over 4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

On the economic info entrance, the Federal Reserve’s most well-liked inflation evaluate confirmed costs are nonetheless running warm across the U.S. economic system.

The core private intake expenses selling price index (PCE) rose .5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in September from the prior month, the Commerce Section mentioned Friday — a slight slowdown from August’s thirty day period-in excess of-thirty day period speed of .6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. The gauge showed a 5.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} increase 12 months above year, an acceleration from the once-a-year 4.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} witnessed in August. Economists surveyed by Bloomberg anticipated increases of .5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, and 5.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, respectively.

Personalized earnings improved .4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} around the thirty day period and consumer shelling out .6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, in contrast to economist estimates of .4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} will increase for just about every measure.

Amazon (AMZN) shares tanked nearly 7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} Friday immediately after the e-commerce giant issued fourth-quarter income guidance that skipped Wall Street estimates and shipped disappointing Q3 final results. The flub marks the second consecutive quarter that weak financials from the enterprise have spurred double-digit share declines in its stock price.

But Apple (AAPL) available a “dim gentle in an otherwise darkish earnings year,” faring greater than its Huge Tech friends as they grappled with macroeconomic hurdles posed by inflation, soaring fascination prices, and currency headwinds. The organization reported file income but missed analyst projections in vital types these kinds of as Apple iphone and companies. Shares rose about 8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, marking the tech giant’s best day considering that July 2020.

Elsewhere in the engineering spotlight, Elon Musk assumed ownership of Twitter (TWTR) soon after a dragged-out bid to invest in the social media system was finalized late Thursday. The Tesla CEO fired major executives on the completion of his $44 billion acquisition of the enterprise and introduced strategies to reverse lifetime bans from the web-site.

Twitter brand and a image of Elon Musk are exhibited via magnifier in this illustration taken October 27, 2022. REUTERS/Dado Ruvic/Illustration

A occupied get started to Friday for buyers was also marked by other experiences from energy conglomerates Exxon Mobil (XOM) and Chevron (CVX), which both equally documented earnings and profits that topped Wall Road estimates – lifting shares of each and every title up by around 2.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} and 1.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, respectively.

SoFi head of investment decision system Liz Younger reported in a note that she expects further more downward revisions and other noteworthy misses this quarter and next, which are possible to problem the current market more. Young pointed out, however, that on the plus side, this suggests that investors can tick the box on “earnings get strike.”

“As we go by that approach, future up we’ll most likely see the economy strike the skids in a little bit far more spectacular vogue than we have witnessed consequently much,” Younger reported. “There are now numerous classic recession warning signs in put, and the pitfalls that even now lie forward are bringing the chance of an real economic downturn nearer into check out.”

—

Alexandra Semenova is a reporter for Yahoo Finance. Adhere to her on Twitter @alexandraandnyc

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October 28, 2022

AbbVie Reports Third-Quarter 2022 Financial Results

Reports Third-Quarter Diluted EPS of $2.21 on a GAAP Basis, an Increase of 24.2 Percent; Adjusted Diluted EPS of $3.66, an Increase of 29.3 Percent; These Results Include an Unfavorable Impact of $0.02 Per Share related to Acquired IPR&D and Milestones Expense ¹

Delivers Third-Quarter Net Revenues of $14.812 Billion, an Increase of 3.3 Percent on a Reported Basis and 5.4 Percent Operationally

Third-Quarter Global Net Revenues from the Immunology Portfolio Were $7.651 Billion, an Increase of 14.6 Percent on a Reported Basis, or 16.4 Percent on an Operational Basis; U.S. Humira Net Revenues Were $4.956 Billion, an Increase of 7.4 Percent; Internationally, Humira Net Revenues Were $603 Million, a Decrease of 25.9 Percent on a Reported Basis, or 16.8 Percent on an Operational Basis, Due to Biosimilar Competition; Global Skyrizi Net Revenues Were $1.397 Billion; Global Rinvoq Net Revenues Were $695 Million

Third-Quarter Global Net Revenues from the Hematologic Oncology Portfolio Were $1.650 Billion, a Decrease of 11.7 Percent on a Reported Basis, or 9.9 Percent on an Operational Basis; Global Imbruvica Net Revenues Were $1.135 Billion, a Decrease of 17.4 Percent, with U.S. Net Revenues of $849 Million and International Profit Sharing of $286 Million; Global Venclexta Net Revenues Were $515 Million

Third-Quarter Global Net Revenues from the Neuroscience Portfolio Were $1.672 Billion, an Increase of 6.7 Percent on a Reported Basis, or 8.3 Percent on an Operational Basis; Global Botox Therapeutic Net Revenues Were $699 Million; Vraylar Net Revenues Were $554 Million

Third-Quarter Global Net Revenues from the Aesthetics Portfolio Were $1.301 Billion, an Increase of 4.0 Percent on a Reported Basis, or 8.1 Percent on an Operational Basis; Global Botox Cosmetic Net Revenues Were $637 Million; Global Juvederm Net Revenues Were $352 Million

Confirms Midpoint of 2022 Adjusted Diluted EPS Guidance Range and Narrows Range from $13.76 – $13.96 to $13.84 – $13.88, which Includes an Unfavorable Impact of $0.25 Per Share Related to Acquired IPR&D and Milestones Expense Incurred Year-To-Date Through the Third Quarter 2022

Announces 2023 Dividend Increase of 5.0 Percent, Beginning with Dividend Payable in February 2023

NORTH CHICAGO, Ill., Oct. 28, 2022 /PRNewswire/ — AbbVie (NYSE:ABBV) announced financial results for the third quarter ended September 30, 2022.

“We continue to see strong momentum from our key immunology assets, Skyrizi and Rinvoq, and this performance – combined with strength from other growth drivers within our diverse portfolio – has mitigated the impact of temporary economic headwinds on our aesthetics products to deliver another quarter of strong results,” said Richard A. Gonzalez, chairman and chief executive officer, AbbVie. “Based upon our performance and confidence in AbbVie’s long-term outlook, we are once again meaningfully raising our dividend.”

Note: “Operational” comparisons are presented at constant currency rates that reflect comparative local currency net revenues at the prior year’s foreign exchange rates.

¹Beginning in the first quarter 2022, AbbVie includes the impact of upfront and milestone payments related to collaborations, licensing agreements and other asset acquisitions in its reported non-GAAP financial measures.

Third-Quarter Results

Worldwide net revenues were $14.812 billion, an increase of 3.3 percent on a GAAP basis, or 5.4 percent on an operational basis.
Global net revenues from the immunology portfolio were $7.651 billion, an increase of 14.6 percent on a reported basis, or 16.4 percent on an operational basis.

Global Humira net revenues of $5.559 billion increased 2.5 percent on a reported basis, or 3.9 percent on an operational basis. U.S. Humira net revenues were $4.956 billion, an increase of 7.4 percent. Internationally, Humira net revenues were $603 million, a decrease of 25.9 percent on a reported basis, or 16.8 percent on an operational basis, due to biosimilar competition.
Global Skyrizi net revenues were $1.397 billion, an increase of 75.4 percent on a reported basis, or 78.3 percent on an operational basis.
Global Rinvoq net revenues were $695 million, an increase of 53.5 percent on a reported basis, or 59.3 percent on an operational basis.

Global net revenues from the hematologic oncology portfolio were $1.650 billion, a decrease of 11.7 percent on a reported basis, or 9.9 percent on an operational basis.

Global Imbruvica net revenues were $1.135 billion, a decrease of 17.4 percent, with U.S. net revenues of $849 million and international profit sharing of $286 million.
Global Venclexta net revenues were $515 million, an increase of 4.5 percent on a reported basis, or 11.3 percent on an operational basis.

Global net revenues from the neuroscience portfolio were $1.672 billion, an increase of 6.7 percent on a reported basis, or 8.3 percent on an operational basis.

Global Botox Therapeutic net revenues were $699 million, an increase of 8.2 percent on a reported basis, or 10.0 percent on an operational basis.
Vraylar net revenues were $554 million, an increase of 20.2 percent.
Global Ubrelvy net revenues were $160 million.

Global net revenues from the aesthetics portfolio were $1.301 billion, an increase of 4.0 percent on a reported basis, or 8.1 percent on an operational basis.

Global Botox Cosmetic net revenues were $637 million, an increase of 16.9 percent on a reported basis, or 21.6 percent on an operational basis.
Global Juvederm net revenues were $352 million, a decrease of 0.6 percent on a reported basis, or an increase of 5.3 percent on an operational basis.

On a GAAP basis, the gross margin ratio in the third quarter was 66.1 percent. The adjusted gross margin ratio was 85.4 percent.

On a GAAP basis, selling, general and administrative (SG&A) expense was 22.3 percent of net revenues. The adjusted SG&A expense was 20.9 percent of net revenues.

On a GAAP basis, research and development (R&D) expense was 10.9 percent of net revenues. The adjusted R&D expense was 10.8 percent of net revenues.

Acquired IPR&D and milestones expense was 0.3 percent of net revenues.

On a GAAP basis, the operating margin in the third quarter was 31.1 percent. The adjusted operating margin was 53.4 percent.

Net interest expense was $497 million.

On a GAAP basis, the tax rate in the quarter was 10.2 percent. The adjusted tax rate was 12.9 percent.

Diluted EPS in the third quarter was $2.21 on a GAAP basis. Adjusted diluted EPS, excluding specified items, was $3.66. These results include an unfavorable impact of $0.02 per share related to acquired IPR&D and milestones expense.

Note: “Operational” comparisons are presented at constant currency rates that reflect comparative local currency net revenues at the prior year’s foreign exchange rates.

Recent Events

AbbVie announced the U.S. Food and Drug Administration (FDA) approved Rinvoq (upadacitinib, 15 mg, once daily) for the treatment of adults with active non-radiographic axial spondyloarthritis (nr-axSpA) with objective signs of inflammation who have had an inadequate response or intolerance to tumor necrosis factor (TNF) blocker therapy. The approval is supported by data from the SELECT-AXIS 2 clinical trial, in which Rinvoq delivered rapid and meaningful disease control as well as significant improvement in signs and symptoms of nr-axSpA. This approval marks the sixth FDA approved indication for Rinvoq in chronic immune-mediated diseases.

AbbVie announced the European Medicines Agency’s (EMA) Committee for Medicinal Products for Human Use (CHMP) recommended the approval of Skyrizi (risankizumab) for the treatment of adults with moderately to severely active Crohn’s disease (CD) who have had inadequate response, lost response or were intolerant to conventional or biologic therapy. The positive opinion is based on results from three Phase 3 studies in which Skyrizi demonstrated significant improvements in clinical remission and endoscopic response, compared to placebo, as both induction and maintenance therapy. If the CHMP recommendation is accepted by the European Commission (EC), this would mark the third indication for Skyrizi in the European Union. Skyrizi is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally.

At the United European Gastroenterology (UEG) Week 2022, AbbVie shared 17 abstracts, including seven oral presentations, from a broad range of studies in inflammatory bowel disease (IBD). Highlights included final analyses from the U-ACHIEVE Phase 3 maintenance study of Rinvoq in moderately to severely active ulcerative colitis (UC), data from the U-EXCEL Phase 3 study evaluating the efficacy and safety of Rinvoq as induction therapy for use in adults with moderately to severely active CD as well as data evaluating Skyrizi for use in patients with moderate to severe CD.

At the American College of Gastroenterology (ACG) Annual Scientific Meeting, AbbVie presented 26 abstracts that illustrate AbbVie’s commitment to providing research and innovative solutions that support patients with high disease burden and unmet need. Key presentations focused on the treatment of moderate to severe CD, including late-breaking Phase 3 data from the Rinvoq 52 week maintenance trial, as well as efficacy and safety outcomes from the Skyrizi pivotal clinical program.

At the European Academy of Dermatology and Venereology (EADV) Congress, AbbVie presented 23 abstracts from across its dermatology portfolio that underscore AbbVie’s commitment to advancing research in dermatology for people living with immune-mediated skin diseases such as psoriasis (PsO), psoriatic arthritis (PsA), atopic dermatitis (AD) and vitiligo. Presentations included long-term efficacy and safety results, including real-world data, from studies of Skyrizi in moderate to severe PsO and active PsA as well as data from the largest-of-its-kind study that demonstrate the real-world burden of AD.

AbbVie announced that the FDA approved the use of Imbruvica (ibrutinib) for the treatment of pediatric patients one year and older with chronic graft versus host disease (cGVHD) after failure of one or more lines of systemic therapy. The approval marks the first approved treatment option for children with cGVHD under 12 years of age and the only Bruton’s tyrosine kinase inhibitor (BTKi) treatment for a pediatric patient population. Imbruvica is jointly developed and commercialized with Janssen Biotech, Inc.

At the International Parkinson and Movement Disorder Society’s (MDS) International Congress, AbbVie presented 13 abstracts across multiple disease states that highlighted AbbVie’s continued commitment to advancing the management of movement disorders. Highlights included results from the Phase 3 M15-736 trial evaluating the continuous subcutaneous infusion of ABBV-951 (foslevodopa/foscarbidopa) in people with advanced Parkinson’s disease (PD) as well as data on the real-world efficacy of Botox (onabotulinumtoxinA) for the treatment of spasticity and treatment of cervical dystonia.

At the Migraine Trust International Symposium (MTIS), AbbVie shared 13 abstracts, including 4 oral presentations, from a wide range of studies across its migraine portfolio that underscore AbbVie’s leadership and commitment to people living with migraine. Highlights included Phase 3 PROGRESS study results evaluating Qulipta (atogepant) for the preventive treatment of chronic migraine as well as data from studies evaluating Botox and Ubrelvy (ubrogepant) in the treatment of migraine.

Allergan Aesthetics announced that the FDA approved Juvederm Volux XC for the improvement of jawline definition in adults over the age of 21 with moderate to severe loss of jawline definition. Juvederm Volux XC is the first and only hyaluronic acid (HA) filler to receive FDA approval for jawline definition.

At the American Society for Dermatologic Surgery (ASDS), Allergan Aesthetics shared data from across its facial injectables, body contouring and skincare portfolio that highlighted Allergan Aesthetics’ continued commitment to advancing aesthetic medicine. Highlights included analyses of 15 years of post-marketing surveillance data that demonstrated the global reported rate of delayed-onset nodules associated with dermal fillers on the Vycross technology platform is low, as well as results from three clinical studies showcasing a customizable platform with patent-pending LTN Complex, to address the appearance of facial hyperpigmentation.

AbbVie announced the acquisition of DJS Antibodies (DJS), a biotechnology company dedicated to discovering and developing antibody medicines that target difficult-to-drug disease-causing proteins. The acquisition includes DJS’ lead program DJS-002, a potential first-in-class LPAR1 antagonist antibody in preclinical studies for the treatment of Idiopathic Pulmonary Fibrosis (IPF) and other fibrotic diseases as well as the company’s proprietary HEPTAD platform.

Full-Year 2022 Outlook

AbbVie is confirming the midpoint of its full-year 2022 adjusted diluted EPS guidance range and narrowing the range from $13.76 – $13.96 to $13.84 – $13.88, which includes an unfavorable impact of $0.25 per share related to acquired IPR&D and milestones expense incurred year-to-date through the third quarter 2022. The company’s 2022 adjusted diluted EPS guidance excludes any impact from acquired IPR&D and milestones that may be incurred beyond the third quarter of 2022, as both cannot be reliably forecasted.

Company Declares Dividend Increase of 5.0 Percent

AbbVie is announcing today that its board of directors declared an increase in the company’s quarterly cash dividend from $1.41 per share to $1.48 per share beginning with the dividend payable on February 15, 2023 to shareholders of record as of January 13, 2023. This reflects an increase of approximately 5.0 percent, continuing AbbVie’s strong commitment to returning cash to shareholders through a growing dividend. Since the company’s inception in 2013, AbbVie has increased its quarterly dividend by 270 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years.

About AbbVie

AbbVie’s mission is to discover and deliver innovative medicines that solve serious health issues today and address the medical challenges of tomorrow. We strive to have a remarkable impact on people’s lives across several key therapeutic areas: immunology, oncology, neuroscience, eye care, virology and gastroenterology, in addition to products and services across our Allergan Aesthetics portfolio. For more information about AbbVie, please visit us at www.abbvie.com. Follow @abbvie on Twitter, Facebook or LinkedIn.

Conference Call

AbbVie will host an investor conference call today at 8:00 a.m. Central time to discuss our third-quarter performance. The call will be webcast through AbbVie’s Investor Relations website at investors.abbvie.com. An archived edition of the call will be available after 11:00 a.m. Central time.

Non-GAAP Financial Results

Financial results for 2022 and 2021 are presented on both a reported and a non-GAAP basis. Reported results were prepared in accordance with GAAP and include all revenue and expenses recognized during the period. Non-GAAP results adjust for certain non-cash items and for factors that are unusual or unpredictable, and exclude those costs, expenses, and other specified items presented in the reconciliation tables later in this release. Beginning in the first quarter of 2022, the company includes the impact of upfront and milestone payments related to collaborations, licensing agreements, and other asset acquisitions in its reported non-GAAP financial measures. Prior periods have been revised to conform to the current period presentation. AbbVie’s management believes non-GAAP financial measures provide useful information to investors regarding AbbVie’s results of operations and assist management, analysts, and investors in evaluating the performance of the business. Non-GAAP financial measures should be considered in addition to, and not as a substitute for, measures of financial performance prepared in accordance with GAAP.

Forward-Looking Statements

Some statements in this news release are, or may be considered, forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. The words “believe,” “expect,” “anticipate,” “project” and similar expressions, among others, generally identify forward-looking statements. AbbVie cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. Such risks and uncertainties include, but are not limited to, the failure to realize the expected benefits of AbbVie’s acquisition of Allergan or to promptly and effectively integrate Allergan’s business, challenges to intellectual property, competition from other products, difficulties inherent in the research and development process, adverse litigation or government action, and changes to laws and regulations applicable to our industry. Additional information about the economic, competitive, governmental, technological and other factors that may affect AbbVie’s operations is set forth in Item 1A, “Risk Factors,” of AbbVie’s 2021 Annual Report on Form 10-K, which has been filed with the Securities and Exchange Commission, as updated by its Quarterly Reports on Form 10-Q and in other documents that AbbVie subsequently files with the Securities and Exchange Commission that update, supplement or supersede such information. AbbVie undertakes no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments, except as required by law.

AbbVie Inc. Key Product Revenues Quarter Ended September 30, 2022 (Unaudited)
				{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} Change vs. 3Q21
	Net Revenues (in millions)			Reported			Operational^a
	U.S.	Int’l.	Total	U.S.	Int’l.	Total	Int’l.	Total
NET REVENUES	$11,763	$3,049	$14,812	4.3 {1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}	(0.4) {1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}	3.3 {1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}	9.6 {1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}	5.4 {1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

Immunology	6,682	969	7,651	18.5	(6.3)	14.6	5.6	16.4
Humira	4,956	603	5,559	7.4	(25.9)	2.5	(16.8)	3.9
Skyrizi	1,221	176	1,397	79.8	50.1	75.4	70.0	78.3
Rinvoq	505	190	695	44.7	82.9	53.5	>100.0	59.3

Hematologic Oncology	1,108	542	1,650	(17.7)	3.9	(11.7)	10.3	(9.9)
Imbruvica^b	849	286	1,135	(23.5)	7.6	(17.4)	7.6	(17.4)
Venclexta	259	256	515	9.2	0.1	4.5	13.2	11.3

Aesthetics	760	541	1,301	(7.4)	25.6	4.0	37.4	8.1
Botox Cosmetic	370	267	637	4.1	41.0	16.9	54.5	21.6
Juvederm Collection	125	227	352	(21.9)	16.9	(0.6)	27.7	5.3
Other Aesthetics	265	47	312	(13.1)	(0.8)	(11.4)	8.3	(10.2)

Neuroscience	1,464	208	1,672	8.6	(5.0)	6.7	6.3	8.3
Botox Therapeutic	584	115	699	9.2	3.6	8.2	14.2	10.0
Vraylar	554	—	554	20.1	n/a	20.2	n/a	20.2
Duodopa	22	88	110	(4.9)	(15.0)	(13.1)	(2.6)	(3.0)
Ubrelvy	160	—	160	(1.4)	n/a	(1.4)	n/a	(1.4)
Qulipta	62	—	62	n/m	n/a	n/m	n/a	n/m
Other Neuroscience	82	5	87	(50.5)	10.2	(49.0)	14.1	(48.9)

Eye Care	362	261	623	(38.1)	(9.1)	(28.6)	1.3	(25.2)
Lumigan/Ganfort	59	62	121	(4.4)	(18.7)	(12.2)	(8.7)	(6.7)
Alphagan/Combigan	37	36	73	(58.2)	(8.9)	(43.0)	2.9	(39.4)
Restasis	132	10	142	(56.7)	(30.7)	(55.6)	(37.7)	(55.9)
Other Eye Care	134	153	287	3.7	(2.7)	0.1	9.1	6.6

Other Key Products	788	202	990	5.5	(19.4)	(0.7)	(9.1)	1.9
Mavyret	190	193	383	3.5	(20.6)	(10.2)	(10.3)	(4.4)
Creon	336	—	336	8.5	n/a	8.5	n/a	8.5
Linzess/Constella	262	9	271	3.4	16.0	3.8	25.8	4.1


^a	“Operational” comparisons are presented at constant currency rates that reflect comparative local currency net revenues at the prior year’s foreign exchange rates.
^b	Reflects profit sharing for Imbruvica international revenues.
n/a = not applicable
n/m = not meaningful

AbbVie Inc. Key Product Revenues Nine Months Ended September 30, 2022 (Unaudited)

				{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} Change vs. 9M21
	Net Revenues (in millions)			Reported			Operational^a
	U.S.	Int’l.	Total	U.S.	Int’l.	Total	Int’l.	Total
NET REVENUES	$33,521	$9,412	$42,933	5.3 {1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}	(0.7) {1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}	3.9 {1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}	6.7 {1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}	5.6 {1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

Immunology	17,922	3,077	20,999	16.4	(2.2)	13.3	6.6	14.8
Humira	13,613	2,045	15,658	6.5	(20.9)	1.9	(14.3)	3.0
Skyrizi	3,081	508	3,589	78.6	59.3	75.6	75.1	78.1
Rinvoq	1,228	524	1,752	38.0	>100.0	54.5	>100.0	59.3

Hematologic Oncology	3,325	1,621	4,946	(14.5)	10.7	(7.6)	15.6	(6.3)
Imbruvica^b	2,585	868	3,453	(19.4)	6.3	(14.2)	6.3	(14.2)
Venclexta	740	753	1,493	8.1	16.2	12.1	27.3	17.5

Aesthetics	2,489	1,557	4,046	0.6	15.1	5.8	23.1	8.6
Botox Cosmetic	1,232	741	1,973	20.0	27.9	22.8	36.8	26.0
Juvederm Collection	420	686	1,106	(12.3)	9.9	0.3	17.6	4.6
Other Aesthetics	837	130	967	(13.4)	(12.8)	(13.4)	(7.2)	(12.7)

Neuroscience	4,175	643	4,818	15.2	(1.1)	12.8	7.9	14.2
Botox Therapeutic	1,641	350	1,991	13.1	6.5	11.9	15.0	13.5
Vraylar	1,473	—	1,473	18.9	n/a	18.9	n/a	18.9
Duodopa	72	279	351	(2.4)	(9.8)	(8.4)	—	(0.5)
Ubrelvy	483	—	483	31.0	n/a	31.0	n/a	31.0
Qulipta	106	—	106	n/m	n/a	n/m	n/a	n/m
Other Neuroscience	400	14	414	(18.3)	10.3	(17.6)	13.1	(17.5)

Eye Care	1,265	846	2,111	(26.9)	(3.5)	(19.0)	5.4	(16.0)
Lumigan/Ganfort	186	205	391	(7.1)	(10.8)	(9.0)	(2.9)	(4.8)
Alphagan/Combigan	161	111	272	(40.8)	(5.1)	(30.0)	4.9	(27.0)
Restasis	518	38	556	(41.3)	(10.1)	(39.9)	(2.8)	(39.6)
Other Eye Care	400	492	892	6.3	0.9	3.3	10.1	8.5

Other Key Products	2,245	623	2,868	4.5	(16.9)	(1.0)	(8.6)	1.2
Mavyret	562	599	1,161	0.9	(17.5)	(9.5)	(9.1)	(4.7)
Creon	941	—	941	9.0	n/a	9.0	n/a	9.0
Linzess/Constella	742	24	766	2.0	3.2	2.0	9.6	2.2


^a	“Operational” comparisons are presented at constant currency rates that reflect comparative local currency net revenues at the prior year’s foreign exchange rates.
^b	Reflects profit sharing for Imbruvica international revenues.
n/a = not applicable
n/m = not meaningful

AbbVie Inc. Consolidated Statements of Earnings (Unaudited)

(in millions, except per share data)	Third Quarter Ended September 30		Nine Months Ended September 30
	2022	2021	2022	2021
Net revenues	$ 14,812	$ 14,342	$ 42,933	$ 41,311
Cost of products sold	5,022	4,390	13,244	13,126
Selling, general and administrative	3,304	3,083	11,843	9,089
Research and development^a	1,614	1,661	4,720	5,095
Acquired IPR&D and milestones^a	40	402	454	719
Other operating expense, net	229	500	57	432
Total operating costs and expenses	10,209	10,036	30,318	28,461

Operating earnings	4,603	4,306	12,615	12,850

Interest expense, net	497	585	1,568	1,813
Net foreign exchange loss	36	12	108	35
Other expense (income), net	(330)	21	427	2,284
Earnings before income tax expense	4,400	3,688	10,512	8,718
Income tax expense	448	508	1,139	1,214
Net earnings	3,952	3,180	9,373	7,504
Net earnings attributable to noncontrolling interest	3	1	10	6
Net earnings attributable to AbbVie Inc.	$ 3,949	$ 3,179	$ 9,363	$ 7,498

Diluted earnings per share attributable to AbbVie Inc.	$ 2.21	$ 1.78	$ 5.24	$ 4.19

Adjusted diluted earnings per share^b	$ 3.66	$ 2.83	$ 10.18	$ 8.75

Weighted-average diluted shares outstanding	1,776	1,777	1,777	1,776


^a	During the three months ended March 31, 2022, AbbVie changed its classification of development milestone expense associated with licensing and collaboration arrangements in the consolidated statement of earnings. Milestone payments incurred prior to regulatory approval, which were previously included in research and development expense, are now presented as acquired IPR&D and milestones expense. The reclassification decreased research and development expense and increased acquired IPR&D and milestones expense by $12 million for the three months and $162 million for the nine months ended September 30, 2021. The company believes this presentation assists users of the financial statements to better understand the total upfront and subsequent development milestone payments incurred to acquire in-process research and development projects. Prior periods have been revised to conform to the current period presentation. The reclassification had no impact on total operating costs and expenses, operating earnings, net earnings, net earnings attributable to AbbVie, Inc., earnings per share, or total equity.

^b	Refer to the Reconciliation of GAAP Reported to Non-GAAP Adjusted Information for further details.

AbbVie Inc. Reconciliation of GAAP Reported to Non-GAAP Adjusted Information (Unaudited)

1. Specified items impacted results as follows:

	Quarter Ended September 30, 2022
(in millions, except per share data)	Earnings		Diluted
	Pre-tax	After-tax^a	EPS
As reported (GAAP)	$ 4,400	$ 3,949	$ 2.21
Adjusted for specified items:
Intangible asset amortization	2,024	1,673	0.94
Intangible asset impairment	770	604	0.34
Acquisition and integration costs	348	348	0.20
Change in fair value of contingent consideration	(214)	(218)	(0.12)
Litigation matters	110	94	0.05
Other	58	78	0.04
As adjusted (non-GAAP)	$ 7,496	$ 6,528	$ 3.66

^a Represents net earnings attributable to AbbVie Inc.

Acquisition and integration costs include costs related to the Allergan acquisition. Other primarily includes restructuring charges associated with streamlining global operations.

Beginning in the first quarter of 2022, the company includes acquired IPR&D and milestones expense in its reported non-GAAP financial measures. Reported GAAP earnings and adjusted non-GAAP earnings for the three months ended September 30, 2022 included acquired IPR&D and milestones expense of $40 million on a pre-tax and after-tax basis, representing an unfavorable impact of $0.02 to both diluted EPS and adjusted diluted EPS.

2. The impact of the specified items by line item was as follows:

	Quarter Ended September 30, 2022
(in millions)	Cost of products sold	SG&A	R&D	Other operating expense, net	Other expense (income), net
As reported (GAAP)	$ 5,022	$ 3,304	$ 1,614	$ 229	$ (330)
Adjusted for specified items:
Intangible asset amortization	(2,024)	—	—	—	—
Intangible asset impairment	(770)	—	—	—	—
Acquisition and integration costs	(22)	(91)	(6)	(229)	—
Change in fair value of contingent consideration	—	—	—	—	214
Litigation matters	—	(110)	—	—	—
Other	(39)	(14)	(1)	—	(4)
As adjusted (non-GAAP)	$ 2,167	$ 3,089	$ 1,607	$ —	$ (120)


3. The adjusted tax rate for the third quarter of 2022 was 12.9 percent, as detailed below:

			Quarter Ended September 30, 2022
(dollars in millions)			Pre-tax earnings	Income taxes	Tax rate
As reported (GAAP)			$ 4,400	$ 448	10.2 {1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
Specified items			3,096	517	16.7 {1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
As adjusted (non-GAAP)			$ 7,496	$ 965	12.9 {1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

AbbVie Inc. Reconciliation of GAAP Reported to Non-GAAP Adjusted Information (Unaudited)

1. Specified items impacted results as follows:

	Quarter Ended September 30, 2021
(in millions, except per share data)	Earnings		Diluted
	Pre-tax	After-tax^a	EPS
As reported (GAAP)	$ 3,688	$ 3,179	$ 1.78
Adjusted for specified items:
Intangible asset amortization	1,904	1,585	0.88
Acquisition and integration costs	176	166	0.09
Change in fair value of contingent consideration	98	98	0.06
Other	48	29	0.02
As adjusted (non-GAAP)	$ 5,914	$ 5,057	$ 2.83

^aRepresents net earnings attributable to AbbVie Inc.

Acquisition and integration costs reflect Allergan-related integration costs. Other primarily includes restructuring charges associated with streamlining global operations and COVID-19 related expenses.

Beginning in the first quarter of 2022, the company includes acquired IPR&D and milestones expense in its reported non-GAAP financial measures. Reported GAAP earnings and adjusted non-GAAP earnings for the three months ended September 30, 2021 included acquired IPR&D and milestones expense of $402 million on a pre-tax and $396 million on an after-tax basis, as well as other operating expense related to the Calico collaboration of $500 million on a pre-tax and after-tax basis, representing an unfavorable impact of $0.50 to both diluted EPS and adjusted diluted EPS.

2. The impact of the specified items by line item was as follows:

	Quarter Ended September 30, 2021
(in millions)	Cost of products sold	SG&A	R&D	Other expense (income), net
As reported (GAAP)	$ 4,390	$ 3,083	$ 1,661	$ 21
Adjusted for specified items:
Intangible asset amortization	(1,904)	—	—	—
Acquisition and integration costs	(49)	(105)	(22)	—
Change in fair value of contingent consideration	—	—	—	(98)
Other	(24)	(17)	(7)	—
As adjusted (non-GAAP)	$ 2,413	$ 2,961	$ 1,632	$ (77)

3. The adjusted tax rate for the third quarter of 2021 was 14.5 percent, as detailed below:

		Quarter Ended September 30, 2021
(dollars in millions)		Pre-tax earnings	Income taxes	Tax rate
As reported (GAAP)		$ 3,688	$ 508	13.8 {1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
Specified items		2,226	348	15.6 {1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
As adjusted (non-GAAP)		$ 5,914	$ 856	14.5 {1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

AbbVie Inc. Reconciliation of GAAP Reported to Non-GAAP Adjusted Information (Unaudited)

1. Specified items impacted results as follows:

	Nine Months Ended September 30, 2022
(in millions, except per share data)	Earnings		Diluted
	Pre-tax	After-tax^a	EPS
As reported (GAAP)	$ 10,512	$ 9,363	$ 5.24
Adjusted for specified items:
Intangible asset amortization	5,728	4,794	2.69
Intangible asset impairment	770	604	0.34
Acquisition and integration costs	595	567	0.32
Change in fair value of contingent consideration	647	657	0.37
Pylera divestiture	(172)	(126)	(0.07)
Litigation matters	2,497	2,021	1.13
Other	281	295	0.16
As adjusted (non-GAAP)	$ 20,858	$ 18,175	$ 10.18

^aRepresents net earnings attributable to AbbVie Inc.

Acquisition and integration costs include costs related to the Allergan acquisition. Litigation matters primarily include a charge related to a potential settlement of litigation involving Allergan’s past sales of opioid products. Other primarily includes restructuring charges associated with streamlining global operations.

Beginning in the first quarter of 2022, the company includes acquired IPR&D and milestones expense in its reported non-GAAP financial measures. Reported GAAP earnings and adjusted non-GAAP earnings for the nine months ended September 30, 2022 included acquired IPR&D and milestones expense of $454 million on a pre-tax and $439 million on an after-tax basis, representing an unfavorable impact of $0.25 to both diluted EPS and adjusted diluted EPS.

2. The impact of the specified items by line item was as follows:

	Nine Months Ended September 30, 2022
(in millions)	Cost of products sold	SG&A	R&D	Other operating expense, net	Other expense (income), net
As reported (GAAP)	$ 13,244	$ 11,843	$ 4,720	$ 57	$ 427
Adjusted for specified items:
Intangible asset amortization	(5,728)	—	—	—	—
Intangible asset impairment	(770)	—	—	—	—
Acquisition and integration costs	(84)	(263)	(19)	(229)	—
Change in fair value of contingent consideration	—	—	—	—	(647)
Pylera divestiture	—	—	—	172	—
Litigation matters	—	(2,497)	—	—	—
Other	(160)	(107)	(7)	—	(7)
As adjusted (non-GAAP)	$ 6,502	$ 8,976	$ 4,694	$ —	$ (227)

3. The adjusted tax rate for the first nine months of 2022 was 12.8 percent, as detailed below:

			Nine Months Ended September 30, 2022
(dollars in millions)			Pre-tax earnings	Income taxes	Tax rate
As reported (GAAP)			$ 10,512	$ 1,139	10.8 {1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
Specified items			10,346	1,534	14.8 {1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
As adjusted (non-GAAP)			$ 20,858	$ 2,673	12.8 {1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

AbbVie Inc. Reconciliation of GAAP Reported to Non-GAAP Adjusted Information (Unaudited)

1. Specified items impacted results as follows:

	Nine Months Ended September 30, 2021
(in millions, except per share data)	Earnings		Diluted
	Pre-tax	After-tax^a	EPS
As reported (GAAP)	$ 8,718	$ 7,498	$ 4.19
Adjusted for specified items:
Intangible asset amortization	5,912	4,929	2.77
Acquisition and integration costs	535	427	0.23
Change in fair value of contingent consideration	2,447	2,445	1.38
Litigation matters	107	86	0.05
Other	319	255	0.13
As adjusted (non-GAAP)	$ 18,038	$ 15,640	$ 8.75

^aRepresents net earnings attributable to AbbVie Inc.

Acquisition and integration costs reflect integration costs as well as amortization of the acquisition date fair value step-up for inventory related to the Allergan acquisition. Other primarily includes the purchase of FDA priority review vouchers from third parties, restructuring charges associated with streamlining global operations and COVID-19 related expenses.

Beginning in the first quarter of 2022, the company includes acquired IPR&D and milestones expense in its reported non-GAAP financial measures. Reported GAAP earnings and adjusted non-GAAP earnings for the nine months ended September 30, 2021 included acquired IPR&D and milestones expense of $719 million on a pre-tax and $696 million on an after-tax basis, as well as other operating expense related to the Calico collaboration of $500 million on a pre-tax and after-tax basis, representing an unfavorable impact of $0.67 to both diluted EPS and adjusted diluted EPS.

2. The impact of the specified items by line item was as follows:

	Nine Months Ended September 30, 2021
(in millions)	Cost of products sold	SG&A	R&D	Other operating expense, net	Other expense (income), net
As reported (GAAP)	$ 13,126	$ 9,089	$ 5,095	$ 432	$ 2,284
Adjusted for specified items:
Intangible asset amortization	(5,912)	—	—	—	—
Acquisition and integration costs	(172)	(275)	(88)	—	—
Change in fair value of contingent consideration	—	—	—	—	(2,447)
Litigation matters	—	(107)	—	—	—
Other	(65)	(50)	(287)	68	15
As adjusted (non-GAAP)	$ 6,977	$ 8,657	$ 4,720	$ 500	$ (148)

3. The adjusted tax rate for the first nine months of 2021 was 13.3 percent, as detailed below:

			Nine Months Ended September 30, 2021
(dollars in millions)			Pre-tax earnings	Income taxes	Tax rate
As reported (GAAP)			$ 8,718	$ 1,214	13.9 {1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
Specified items			9,320	1,178	12.6 {1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
As adjusted (non-GAAP)			$ 18,038	$ 2,392	13.3 {1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

SOURCE AbbVie