AGN - AbbVie Will Be Formidable After Acquiring Allergan
AbbVie (ABBV) is undervalued, and the company's plan to acquire Allergan (AGN) will provide both needed diversification and a focused use for the current torrent of free cash flow that AbbVie earns. More than half of AbbVie's sales come from Humira, a blockbuster immunosuppressive medication, and it needs to diversify away from Humira. This is a sensible plan that will bring needed diversification in multiple forms.
Pharmaceuticals and biotech companies are suffering due to political rhetoric that fuels uncertainty about pricing and many other key issues. AbbVie and Allergan are both profitable companies