Is AbbVie a Good Investment?

PHOTO CREDIT: AbbVie

OVERVIEW

Why You Should?

  1. AbbVie has a great line of drugs that it currently offers to patients around the world. A good example of this is their Humira drug, one of the best drugs that over 1.4 million Americans can use to treat their rheumatoid arthritis. Other drugs used to fight allergies and other issues will also drive AbbVie’s overall volumes and other metrics higher.
  2. AbbVie continues to invest in the future of pharmaceutical drugs. They have continued to invest in drugs that are designed to cure various types of cancer and other diseases. This line of future drugs makes AbbVie a great long-term investment. AbbVie will continue to be a pharmaceutical juggernaut in the future.
  3. Due to the reasons mentioned above, the company has seen rising revenues and profits over the past couple of financial years. This will help the company grow in the future and continue to develop a good line of drugs and medicines. This rise in revenues and profits will also benefit the investors of the company. In the financial year of 2019, the company reported revenues of around 33.27 billion and profits of around 7.88 billion. Both of these metrics are higher than what the company reported in the financial year of 2018 when they had revenues of around 32.75 billion and profits of around 5.69 billion
PHOTO CREDIT: Yahoo Finance

Why You Should Not?

  1. Politicians around the world want to continue to reduce drug prices for their citizens. This will hurt AbbVie’s business model, which requires drugs to be extremely profitable in order to reinvest a part of these profits back into the company in order to develop new drugs/medicines. This political background will hurt the company in the future.
  2. AbbVie faces tough competition from several other pharmaceutical companies. Some of these companies include Abbott Labs, Regeneron, Gilead, and many others. This competition might offer similar drugs to the ones that AbbVie offers in the future. This might hurt the company in the future.

MY OPINION

--

--

Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Aaditya Patel

Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.