AbbVie Inc. (ABBV-N)

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.

He sold Abbvie. He likes pharma, but this is a weaker name that's facing more competition.

One of largest pharmacy companies in sector. Recently announced M&A plans for cancer drugs. Very strong brand value with excellent management team. Company very resilient to gyrations in economy. Price target is ~$160. Strong history of good capital allocation. Consistent dividend increases over past 50 years. Current dividend yield very safe. 

They're trying to fill the Humira whole which is going off patent, though is a huge-selling drug. They have to migrate people to use new drugs, and he thinks they can. He'd like to hear managers talk about this.

Great cash flow yield. A great performer in 2022, but has been recently weak with most of healthcare. Beyond healthcare, healthcare has the highest free cash flow, good to hold as we enter an uncertain economy.

Has earnings power, margins and growth. People got too bearish on Humira's biosimilars. Skyrizi did much better than expected. Has strong free cash flow. A good way to diversify away from tech.