AbbVie Inc. (ABBV-N)

Prefers ABBV. Main overhang to PFE is what happens to the vaccine franchise now that we're on the other side of Covid? PFE will need other engines, it's a show-me story. ABBV is a leader in immunology. Humira is coming off patent, which will compress earnings, but that's well-known by the market. Its pipeline will fill the gap, plus Botox business.

Pays a 3.9% dividend, paying 14x forward earnings, but the EPS growth rate is likely under 5% annual forward. Problem is their big drug Humira comprises 43% of overall sales, but this patent expires this year--that's a problem. Abbvie does have a good pipeline though. Prefers Pfizer, Merck, etc.

 ABBV is set to see more competition on Humira, which is a multi-billion dollar product for it. But this is hardly new news. 
The issue has been discussed for years as the drug comes off patent. 
There hasn't been much material news; the company did say it was lifting its $2B cap on acquisitions, potentially worrying some investors who want debt to decline. 
The sector has also seen some weakness generally as investors move into other areas. It reports tomorrow and remains very cheap.  
We would not change a position.  
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It reports Thursday. Recently, it's gotten negative press over the high-handed way ABBV protected the price of Humira, their big drug that has finally lost patent protection. Will it crush gross margins? Does management have enough to offset that loss? If management addresses this issue, shares could go down.