Company: ABBV
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0001551152-25-000020
Chunk: 189

Company: AbbVie Inc.
Filing Date: 2025-02-14
Form: 10-K
Item: Item 3
Chunk 189
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20242023202220242023Research and development$12,791 $7,675 $6,510 67 %18 %as a percent of net revenues23 %14 %11 %

Research and development (R&D) expenses as a percentage of net revenues increased in 2024 compared to 2023. R&D expense percentage for 2024 was unfavorably impacted by the intangible asset impairment charge of $4.5 billion related to emraclidine compared to an intangible asset impairment charge of $630 million in 2023, increased funding to support all stages of the company's pipeline assets and acquisition and integration costs incurred in connection with the ImmunoGen and Cerevel Therapeutics acquisitions including cash-settled, post-closing expense for employee incentive awards. See Note 5 to the Consolidated Financial Statements for additional information. 

41     |  2024 Form 10-K

Acquired IPR&D and Milestonesyears ended December 31 (in millions)202420232022Upfront charges$2,627 $582 $445 Development milestones130 196 252 Acquired IPR&D and milestones$2,757 $778 $697 

Acquired IPR&D and milestones expense in 2024 included charges related to the upfront payments of $1.4 billion to acquire Aliada Therapeutics Holdings, Inc. (Aliada) and $250 million to acquire Celsius Therapeutics. See Note 5 to the Consolidated Financial Statements for additional information.

Other Operating Expense (Income), Net

Other operating expense (income), net included a gain of $169 million in 2023 related to a development liability associated with an asset divested as part of the acquisition of Allergan, Inc. (Allergan) in 2020.

Other Non-Operating Expensesyears ended December 31 (in millions)202420232022Interest expense$2,808 $2,224 $2,230 Interest income(648)(540)(186)Interest expense, net$2,160 $1,684 $2,044 Net foreign exchange loss$21 $146 $148 Other expense, net3,240 4,677 2,448 

Interest expense in 2024 increased compared to 2023 primarily due to the incremental interest associated with financing the ImmunoGen and Cerevel Therapeutics acquisitions. See Note 10