ABBV

AbbVie Inc

Healthcare


Presented:05/18/2017
Price:$65.63
Cap:$105.20B
Current Price:$191.86
Cap:$338.89B

Presented

Date05/18/2017
Price$65.63
Market Cap$105.20B
Ent Value$135.15B
P/E Ratio17x
Book Value$3.14
Div Yield3.92%
Shares O/S1,603.00M
Ave Daily Vol6,013,884
Short Int2.52%

Current

Price$191.86
Market Cap$338.89B
AbbVie, Inc. is a research-based biopharmaceutical company. It engages in the discovery, development, manufacture and sale of a broad line of proprietary pharmaceutical products. The company focused on treating conditions such as chronic autoimmune diseases in rheumatology, gastroenterology and dermatology; oncology, including blood cancers; virology, including hepatitis C and human immunodeficiency virus; neurological disorders, such as Parkinson's disease; metabolic diseases, including thyroid disease and complications associated with cystic fibrosis; as well as other serious health conditions. The company was founded on January 1, 2013 and is headquartered in North Chicago, IL.

Publicly traded companies mentioned herein: AbbVie Inc (ABBV), Pfizer Inc (PFE)

Highlights

The presenter is short shares of AbbVie (ABBV) in the mid-$60s and sees Pfizer’s recent, negative Xtandi sales surprise as reason for caution with respect to AbbVie’s Humira. The scrutiny of third-party foundations/ charities that help patients afford expensive medications [aka patient assistance programs (PAPs)] has been widely reported on for years, but not until recently has there been an impact on a drug’s sales. In addition, he noted that Humira “definitely” faces generic competition in Europe; and, ABBV lost patent protection for Humira in the US, which opens the door for a biosimilar launch as early as 2020. With 65% of sales and all of the company’s profits attributable to Humira, the presenter believes the short position may have a long shelf life. However, he noted that the risk of an issue with ABBV’s PAP similar to what Pfizer experienced could be a near-term catalyst given current market dynamics.

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