ABBV - AbbVie And Gilead - Two Different Strategies To Improve Growth
Introduction
AbbVie (ABBV) and Gilead (GILD) have both experienced declines in their valuations because of expected and actual declines in revenue and profitability. In AbbVie’s case, the issue is the well-known loss of US patent exclusivity coming in 2023 for its anti-inflammatory drug Humira, which comprised over 60% of total revenues in 2018. With Gilead, the problem is with its Hepatitis C drugs, where sales dropped from $19.1 billion (59% of total sales) in 2015 to $3.7 billion (17% of total sales) in 2018. The companies are pursuing different strategies