AbbVie Successfully Navigated the Humira Cliff but Faces Future Risks
"Abbvie has proven that it can successfully navigate a difficult patent cliff. Humira wasn't just Abbvie's top-selling drug for years. But Abbvie was able to significantly reduce its dependence on Humira, even before it lost US patent exclusivity in 2023 through some key acquisitions, the company developed two successors to Humira that will together generate more revenue this year than Humira did at its peak. The main reason I didn't give Abbvie an even higher score is just the intrinsic risk that's associated with developing new drugs, and there's potential negative impact of tariffs on pharmaceutical imports to the US if the Trump administration goes ahead with that."
— Keith Speights
The speaker emphasizes that AbbVie managed to overcome the major setback of losing Humira exclusivity by successfully diversifying its revenue stream through acquisitions. However, he expresses concerns over inherent risks in new drug development and possible negative impacts from tariffs, which temper his enthusiasm despite acknowledging the company's overall strength.
Company CommentaryNeutral/Mixed Medium ConvictionScore: 7.2
Company Opinion •The Motley Fool • 4 days ago