The Street Assesses AbbVie
This article was originally published in The Pink Sheet Daily
With a market cap of a Bristol-Myers or Eli Lilly, AbbVie is worth more in early trading than the remaining Abbott. If it can keep growing Humira sales while making its pipeline pay-off, it will be the poster child for slimmed-down and refashioned pharma.
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Earn-outs and other deal tools help bridge value gaps and share risk, enabling more deals to be finalized, report says. However, pharma is seeing increased M&A competition from biotechs looking to diversify and increase scale.
Management highlighted the ongoing growth potential of Humira and a late-stage pipeline that it says has the ability to generate between $4 billion and $6 billion of growth during the new pharmaceutical company’s first financial call with investors.
AbbVie should appeal to long-term investors due to its sustainable business base and plan to issue and increase dividends over time, says CEO Richard Gonzalez.