PJP - AbbVie: Q122 Results Dampen Enthusiasm & Test Management's Growth Plans

• AbbVie reported Q122 earnings last night, and there was good and bad news - the bad led to a share price drop of ~10%.
• Revenues came in a little lower than Street expectations, at $13.54bn, and FY22 EPS was downgraded from $14.00 - $14.20 to $13.92 - $14.12.
• Nevertheless, forward PE is ~14x and that is better than the average for Big Pharmas.
• Everybody knows Humira - AbbVie's >$20bn selling auto-immune drug Humira will lose patent exclusivity in US next year.
• The latest earnings places management's plans to keep growing despite lost Humira revenues under the microscope, highlighting the risks. Despite AbbVie stock's bull run ending, however, long-term there is plenty of upside opportunity.

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