AbbVie Inc. (NYSE:ABBV) Q2 2020 Earnings Conference Call - Final Transcript

Jul 31, 2020 • 09:00 am ET


AbbVie Inc. (NYSE:ABBV) Q2 2020 Earnings Conference Call - Final Transcript


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Good morning, and thank you for standing by. Welcome to the AbbVie Second Quarter 2020 Earnings Conference Call.

[Operator Instructions] I would now like to introduce Ms. Liz Shea, Vice President of Investor Relations.

Liz Shea

Good morning, and thanks for joining us. Also, on the call with me today are; Rick Gonzalez, Chairman of the Board and Chief Executive Officer; Michael Severino, Vice Chairman and President; and Rob Michael, Executive Vice President and Chief Financial Officer. Joining us for the Q&A portion of the call is Laura Schumacher, Vice Chairman External Affairs, Chief Legal Officer and Corporate Secretary.

Before we get started, I remind you that some statements we make today may be considered forward-looking statements for purposes of the Private Securities Litigation Reform Act 1995. AbbVie cautions that these forward-looking statements are subject to risks and uncertainties, including the impact of the COVID-19 pandemic on AbbVie's operations, results and financial results that may cause actual results to differ materially from those indicated in the forward-looking statements.

Additional information about these risks and uncertainties is included in our 2019 annual report on Form 10-K and in our other SEC filings. AbbVie undertakes no obligation to update these forward-looking statements except as required by law.

On today's conference call, as in the past, non-GAAP financial measures will be used to help investors understand AbbVie's ongoing business performance. These non-GAAP financial measures are reconciled with comparable GAAP financial measures in our earnings release and regulatory filings from today, which can be found on our website.

Please note that the second quarter financial results and guidance provided on today's call for sales, EPS and line items of the P&L reflect a full period of legacy AbbVie operations and a partial year of contribution from the Allergan portfolio since the transaction closed in early May of this year.

In addition, we have provided a quarterly comparable historical trend analysis for key product revenues of the newly combined company, as a supplemental table in our earnings release this quarter. This table supports the comparison of sales growth on a comparable operational basis, including full quarter, current year and historical results for Allergan on a pro forma basis.

Comparable operational percent changes are presented at a constant -- at constant currency rate. For this comparison of underlying performance, all historically reported Allergan revenues have been recast informed to conform to AbbVie's revenue recognition accounting policies, and exclude the recent divestitures of Zenpep and Viokace. Following our prepared remarks, we'll take your questions.

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

Richard A. Gonzalez

Thank you, Liz. Good morning, everyone, and thank you for joining us. Today, I'll discuss our second quarter performance and highlights. And for the first time, I'll provide our 2020 outlook for the newly combined company.

Mike will then discuss recent advancements across R&D programs. And Rob, will review the quarter and our updated guidance in more detail. Following our remarks, we'll take your questions. I'd like to start off by recognizing all of