AbbVie Inc. (NYSE:ABBV) Q4 2014 Earnings Conference Call - Final Transcript

Jan 30, 2015 • 09:00 am ET


AbbVie Inc. (NYSE:ABBV) Q4 2014 Earnings Conference Call - Final Transcript


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Good morning and thank you for standing by. Welcome to the AbbVie Fourth Quarter 2014 Earnings Conference Call. All participants will be able to listen-only until the question-and-answer portion of this call. (Operator Instructions). This call is being recorded by AbbVie.

I would now like to introduce Mr. Larry Peepo, Vice President of Investor Relations.

Larry Peepo

Good morning and thanks for joining us today. Also on the call with me is Rick Gonzalez, Chairman of the Board and Chief Executive Officer; and Bill Chase, Executive Vice President of Finance and Chief Financial Officer. Joining us for the Q&A portion of the call are Laura Schumacher, Executive Vice President Business Development, External Affairs and General Counsel; and Mike Severino, Executive Vice President of R&D and Chief Scientific Officer.

(Forward-Looking Cautionary Statements)

Following our prepared remarks, we'll take your questions.

So, with that I'll now turn the call over to Rick.

Rick Gonzalez

Thanks, Larry. Good morning everyone and thank you for joining us this morning. Since becoming an independent company, our strategy has centered around delivering strong results and returns for our shareholders while ensuring, we have a strong sustainable growth business over the long term. As we look back over the past year and assess our performance, we're pleased with the significant progress we've made, not only in delivering outstanding 2014 results, but also in establishing a solid platform for growth well into the future.

As we announced this morning, we delivered exceptional results in 2014. With sales and earnings well above our original projections for the year, we delivered 7% global operational sales growth in 2014 and we increased our ongoing earnings per share by nearly 6%. When we launched AbbVie two years ago, one of our key priorities was to return to strong growth in 2015. I'm pleased that we were able to achieve that goal a year ahead of schedule. This performance demonstrates the strength and sustainability of our portfolio

Rick Gonzalez

and underscores our continued focus and execution. Our performance in 2014 was driven by growth from key products including Humira , Synthroid, Synagis, CREON, and Duodopa. We also delivered year-over-year margin improvement while continuing to invest in R&D and SG&A to drive future growth.

In addition to our strong financial results over the past year, we are seeing significant pipeline advancement and have achieved a number of important development and regulatory milestones. We secured US and European approval for interferon-free HCV treatment (inaudible). We successfully completed several late-stage clinical trials including the daclizumab and Humira HS registrational programs.

We initiated a number of promising phase 3 through programs including several phase 3 studies of our PARP inhibitor Veliparib in solid tumors such as breast and lung cancer and our BCL-2 inhibitor ABT 199 in hematological malignancies. We also made significant advancements with our next-generation HCV program, initiating a broad phase 2B program which is on track to transition the phase 3 in 2015. We advanced a number of early-stage assets in the mid-stage development including our DB platform and ABT-414 our