AbbVie diversifies for the future

Article Excerpt

We continue to see attractive investment opportunities for our subscribers in top drug stocks—and that includes AbbVie Inc. At the same time, over the years, we’ve found that spinoffs are about as close as you can get to a sure thing in investing. It’s one key reason why we think AbbVie—itself a spinoff—has further gains ahead. We recommend this stock as a Power Buy. ABBVIE INC., $192.94, is a buy. The company (New York symbol ABBV; TSINetwork Rating: Above Average) (www.abbvie.com; Shares outstanding: 1.8 billion; Market cap: $340.8 billion; Dividend yield: 3.2%) was formed on January 3, 2013, when Abbott Laboratories (symbol ABT on New York) split into two publicly traded companies. Since its spinoff from Abbott Laboratories, AbbVie has depended heavily on its Humira drug to drive both its sales and earnings. As a treatment for various autoimmune disorders, blockbuster Humira is routinely prescribed by physicians to sufferers of arthritis, psoriasis and Crohn’s disease. Humira’s patent protection in the European Union (EU) expired in 2018. That let…