not vested
Tech Bargain No. 4: AbbVie Inc. (NYSE: ABBV)
Investors have worried lately that AbbVie Inc. (NYSE: ABBV) is too dependent on Humira (adalimubab), the best-selling drug in the world with sales last year of more than $12.5 billion.
Patents on the anti-inflammatory begin to expire late next year.
However, AbbVie just made a $21 billion acquisition of Pharmcyclics Inc. The buyout added Imbruvica (ibrutinib), a promising leukemia drug, to its portfolio.
And in just the past two weeks, AbbVie announced that it is seeking to expand Imbruvica in the United States to include front-line treatment of chronic lymphocytic leukemia – the most common form of the disease.
The company is making some shrewd strategic partnerships right now, too…
It has partnered with Google Inc.'s (Nasdaq: GOOG, GOOGL) secretive California Life Company, better known as Calico. The two companies have agreed to invest $1.5 billion in drug research and will focus on genetic data to treat age-related diseases.
With a $98 billion market cap, the STOCK TRADES at $59.50. It has a 39% return on equity and recently increased its quarterly earnings by 24%. On a forward earnings basis, it TRADES at a nearly 30% discount to the S&P 500.
Source: Money Morning