Buy The Dip In AbbVie? Nope, Not This Time

Summary:

  • AbbVie Inc.’s revenue growth has turned negative due to the expiration of Humira patents, and the Allergan acquisition has not been able to compensate.
  • The valuation is high compared to its growth prospects, making it unattractive.
  • AbbVie’s debt reduction efforts and strong cash flow are commendable, but the dividend yield is just okay.

Abbvie

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Pharma giant AbbVie Inc. (NYSE:ABBV), once upon a time, was one of my favorites in the group. However, the Humira patent expiration has simply proven too much to overcome, and the Allergan acquisition isn’t yielding the results that AbbVie needs


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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