
NYSE:ABBV
This summary was created by AI, based on 9 opinions in the last 12 months.
AbbVie Inc. (ABBV) has shown resilience despite facing challenges such as the expiration of the Humira patent. Experts note a 15% increase over the past year, with positive indicators suggesting a potential rise in stock value if it surpasses key price points. The company's diverse drug pipeline, including notable products like Rinvoq, is recognized for driving future growth and mitigating risks associated with Humira's decline. Analysts commend AbbVie for effectively navigating the patent cliff, leveraging cash flow from Humira to diversify its offerings and strengthen its market position. With solid dividend yields and expected EPS growth, AbbVie is viewed favorably by experts, sustaining its relevance in a selective healthcare sector.
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.
(A Top Pick May 12/20, Up 24%) He's sticking with it. There's more upside to come. Their biggest product was Humera, a massive drug. A few years ago, they bought Allergan and their Botox drug, which reduced company dependence on Humera for company revenues. ABBV has some new drugs in the pipeline that are reaching $1 billion in sales, so this further spreads the risk away from Humera. It trades at a cheap 9x PE and pays a 5% dividend. Warning: in 2023, Humera goes off patent and that will mean a challenge for ABBV to replace that revenue stream (Humera makes up 32% of all revenues, though it used to be 65% before Botox).