AbbVie Inc. (ABBV)

Trades at 10x earnings. Fine fundamentals. Owns Humera, a hugely profitable drug. ABBV bought Allergan to dilute the dependence on Humera revenues. That's when he bought ABBV, because the company became less risky. A fine 4.5% dividend. Caveat: in 2023, Humera goes off-patent, so ABBV has been busy replacing these future lost revenues (so they bought Allergan). They also have been developing and acquiring new drugs. Worries of going off-patent are already built in share prices, so the worry is in the past.

A great holding. Pays nearly a 5% dividend yield. They bought Allergan some years ago. Humera used to be a big chunk of company revenues, but is now lower and more comfortable. Cash flow is strong. Earnings valuation is attraction. Caveat: humera goes off patent in 2023, so this will impact Abbvie's revenue stream. However, ABBV is smart by lowering the impact of humera by developing other drugs that bring in $1 billion revenues. The humera factor is fully discounted in the current Abbvie price. So, he would absolutely buy ABBV. You're now buying it at a 20% discount if ABBV didn't have that patent-expiration overhang.

There are some fears of loosing patent protection with Humera, but patients seem to be want to stick with the brand name. When they acquired Allergan, they got the botox franchise, which is a reopening play. 4.5% yield. A good long term play. They have a good pipeline as well.