ABBV - AbbVie: Comeback Expected After Humira Patent Expiration

2024-03-10 12:23:46 ET

Summary

• AbbVie's full-year results for 2023 might have been weak, but its price is still up by 15% YTD.
• The disconnect is explained by the revenue dip because of patent expiration for its blockbuster drug Humira, though revenues-ex Humira saw healthy growth.
• The company's other immunology drugs are promising, as is its neuroscience segment, which augur well for 2024 and beyond. Its EPS can see an uptick too.
• Its competitive non-GAAP forward P/E compared to the healthcare sector, its higher than average TTM dividend yield, past history of dividend growth and prospects make it an attractive stock.

There’s no sugarcoating the fact that AbbVie ( ABBV ), the biggest healthcare stock by market capitalisation after Eli Lilly and Company ( LLY ), has seen dismal full-year results for 2023 last month with a 6.4% decline in revenue and a huge 59% drop in reported earnings per share [EPS]....

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