ABBV - Embedded Expectations Analysis - 2018 08 31
AbbVie Inc. (ABBV:USA) currently trades well below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 12.6x Uniform P/E, implying bearish expectations for the firm. Moreover, management has concerns about their ability to sustain elevated growth levels and expanding margins, and negate the effects of patent lossesSpecifically, management may lack confidence in their ability to sustain elevated growth levels and expanded operating margins across their portfolio. Furthermore, they may be exaggerating their satisfaction with underlying market trends and the extent of their favorable positioning for future growth. Additionally, they may lack confidence in their ability to minimize the financial impacts of HUMIRA's patent loss through competitive pricing, and to offset abrupt declines in its net sales with biosimilar royalty fees. Also, they may be exaggerating their ability to mitigate net sales erosion from HUMIRA with Upadacitinib and Risankizumab when its patency comes off. Finally, they may be exaggerating the likeliness that ABBV will have seven multi-billion dollar assets by 2020
AbbVie is a research-based biopharmaceutical company. The company's products are focused on treating conditions such as chronic autoimmune diseases in rheumatology, gastroenterology and dermatology; oncology, including blood cancers; virology, including hepatitis C virus and human immunodeficiency virus; neurological disorders, such as Parkinson's disease; metabolic diseases, including thyroid disease and complications associated with cystic fibrosis; pain associated with endometriosis; as well as other serious health conditions. The company also has medicines in clinical development across immunology, oncology and neuroscience, with additional targeted investment in cystic fibrosis and women's health.
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