Interested in investing in AbbVie? Here’s everything you need to know before taking the plunge.
AbbVie is a U.S. pharmaceutical company that is currently performing well on the stock market. Its net income was $36 million in the fourth quarter. Contrary to expectations, its EPS is at $2.92, while the consensus forecast was for $2.85. However, despite this stability, setbacks always need to be accounted for, as the stock market is subject to risks. Make sure you’re aware of everything you need to know before investing.
AbbVie is an American company that was spun off from Abbott in 2011. The company focuses on the design and development of drugs dedicated to the treatment of life-threatening and chronic diseases, such as:
The main shareholders of the group are investment funds. These include Vanguard Group with 8.3% of the capital, Black Rock with 6.7% and Capital Research Global Investors with 5.8%.
Its sales are spread over several countries, the most important of which is the United States with 76.1%, followed by Japan with 2.6% and Europe.
Since becoming independent in 2013, AbbVie has gone from strength to strength. In 2015, the company acquired Pharmacyclics, a company specializing in leukemia treatment. Since then, it has continued to make acquisitions, such as that of Stemcentrx in 2016 and Allergan in 2019.
Despite its many achievements, the company is in competition with several well-known brands, such as Sanofi, Johnson & Johnson, AstraZeneca and Bayer among others.
Since its spin-off in 2014, the American biotech company has made a lot of progress. Its market capitalization is currently estimated at $175,860.53M. Since its IPO, it has been able to issue more than 1,594,094,698 shares, allowing it to enter the big league.
Currently, its share value is on the rise and was accessible at around 110 euros on March 16, 2021, compared to 108.18 the day before. Moreover, financial analysts are predicting an increase to 122.49 USD in the next three months.
Forecasts are good, showing a clear increase for 2021. The net dividend per share, for example, may rise to $5.20 in 2021, up from $4.72 last year. The company is also looking at a yield of 4.81% this year, up from 4.36% last year.
Of course, the share price can go down at one point or up at another. Several factors can come into play:
Even looking beyond stock market figures, the following strengths make AbbVie shares an appealing option for investors:
Despite reassuring forecasts and benefits, there are always risks involved in investing in the stock market. In AbbVie's case, the threat is to its flagship product: Humira.
This treatment for autoimmune diseases remains at the top of the list of the best-selling drugs in the world. It has a 2.4% share of the world market, generating enormous profits for the brand. However, In the near future, other biosimilar drugs may claim to have the same therapeutic effects.