ABBV - Embedded Expectations Analysis - 2019 02 11
AbbVie Inc. (ABBV:USA) currently trades below historical averages relative toUAFRS-based (Uniform) Earnings, with a 12.5x Uniform P/E, implying bearish expectations for the firm. Moreover, management has concerns about biosimilar competition, new product launches, sales potential of existing products, and earnings growth
Specifically, management may be concerned about biosimilar competition and revenue erosion, and their oncology franchise's ability to offset competitive headwinds. Additionally, they may be concerned about the launch of risankizumab and upadacitinib, and may be exaggerating their ability to gain market share. Moreover, they may lack confidence in their contracting strategy, and ability to deliver on commitments to investors. They may also be overstating sales potential for MAVYRET, ORILISSA, and IMBRUVICA, and may be concerned about price decreases. Furthermore, they may lack confidence in their ability to sustain EPS growth, and manage SG&A expenses. Finally, they may be exaggerating the revenue impact of VENCLEXTA's broad relapsed CLL approval, and its potential as a hematologic treatment option
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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