AbbVie Inc. (ABBV-N)

He added more AbbVie. Obviously, today's news about the disappointing drug trials is not good. This schizophrenia drug was projected to make $1.1 billion in sales four years from now. But today's share plunge is too great, overdone. He might add on even more weakness. Trades at 14x forward PE and pays a 3.9% dividend. It's a great company on sale. They have a long track record of making acquisitions.

Is one of the largest companies in bio-medicals. Growth has been impressive. Are expanding into neuro-science, Alzheimer's. They clearly replaced a key drug going off-patent with a good pipeline. Two anti-inflammatory drugs are outperforming expectations.

They beat top and bottom and raised guidance. A nice quarter. Their key drugs were way up. They have a strong pipeline.

Management has replaced key drug, Humira, and made key acquisitions. Are doing all the right things.

Have a great drug pipeline.

Abbvie is famous for Humira, now off-patent. They've done well filling that hole, but their growth rate is now tepid. So, he sold it.

Was upgraded today. It will continue to be a great stock and expects it to surpass $200. It trades at 2025 15x PE. It solved the problem and how to do after their big drug, Humira, comes off patent. They've replaced it with two other hit drugs that will top $20 billion in annual sales in 2025. Good valuation and pays a 3.3% dividend. They've made key pick-ups in neurology.

Is bullish biotech. Likes Abbvie for its diverse pipeline of drugs.

Done well with a best-selling arthritis drug. Strategically pivoted to other products to bolster revenue stream. Significant growth expected over next 5-10 years. Long-term hold. Increased guidance. Potential 8.5% upside from here.

Top choice in pharma market. Strong offering of products. Very large company that is defensive. Recent patents coming to market - will present opportunity. 18-19 new drugs coming to market this year. Botox products also very strong. Lots development done "in house" vs. competitors. Excellent track record. 

Companies that don't have high demand for R&D investment pay out a lot of earnings in dividends or buy back shares. Results in negative net worth on the books. Growth trajectory stale. Don't be fooled by high dividend yield or low PE.

It's been hurt because the whole sector has. Shares went from $182 to $169. At $163-4, start buying again. He owned, sold for a profit and wants to get back in. They make Botox, which is a key product.

In the past 2 months they bought Immurgen (they have an ovarian cancer treatment and oncology portfolio) and Cerevel (a clinical stage biotech to treat, for example, Parkinson's, epilepsy). These are smart moves. Why? Competition. CVS just announced it is adopting biosimilars (generic drugs), including removing Humira (Abbvie's big drug which came off patent).

Sold because Humera was coming off patent. A good move that avoided the opportunity cost of the stock just treading water. Trying to plug holes with acquisitions. Good company, but better opportunities elsewhere.