AbbVie Inc. (ABBV): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report

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Summary:
AbbVie's third quarter EPS of $0.89, up 8.5% y-o-y,, surpassed the Zacks Consensus Estimate of $0.78. Revenues grew 7.8% to $5.019 billion, above the Zacks Consensus Estimate of $4.828 billion. AbbVie, which terminated its merger deal with Shire, guided above expectations in addition to reporting strong third quarter results. With AbbVie clearing major loss of exclusivity events, key brands like Humira continuing with their strong performance and the mid-and late-stage pipeline progressing, the company looks well-positioned for growth. The approval of Viekira Pak and pharmacy benefit manager, Express Scripts' support are a major boost for the company. We are upgrading the stock to Outperform.


Overview:

North Chicago, IL-based AbbVie came into existence on Jan 1, 2013, after Abbott Laboratories divested its pharmaceutical division. AbbVie, a biopharmaceutical company, focuses on the development and marketing of treatments for complex and serious ailments. The company has a presence in the rheumatoid arthritis, psoriasis, Crohn's disease, HIV, cystic fibrosis, testosterone, thyroid disease, Parkinson's disease, ulcerative colitis, and chronic kidney disease markets.

AbbVie's flagship product Humira is approved for several indications like rheumatoid arthritis (moderate to severe), moderately to severely active polyarticular juvenile idiopathic arthritis, active psoriatic arthritis, active ankylosing spondylitis, Crohn's disease (moderate to severe), ulcerative colitis (moderate to severe), axial spondyloarthritis, pediatric Crohn's disease and chronic plaque psoriasis (moderate to severe).

Other drugs include Viekira Pak (hepatitis C virus HCV), AndroGel (low testosterone), Kaletra (HIV), Niaspan (cholesterol management), Synthroid (hormone therapy for thyroid disease), Creon (pancreatic enzyme replacement therapy for conditions associated with cystic fibrosis and chronic pancreatitis), Zemplar (secondary hyperparathyroidism), Duodopa (advanced Parkinson's disease - currently approved in Europe and other international markets) and TriCor/TriLipix (cholesterol management) among others.

The company also has several candidates in different stages of development across a wide range of therapeutic areas like immunology, renal care, HCV, women's health, oncology, and neuroscience (including multiple sclerosis and Alzheimer's disease). Key pipeline candidates include Elagolix (phase III ongoing for the treatment of endometriosis and phase IIb for uterine fibroids being developed with Neurocrine Biosciences), atrasentan (phase III ongoing for the treatment of chronic kidney disease with the study scheduled to complete in 2017), ABT-199 (phase II ongoing in relapsed refractory chronic lymphocytic leukemia patients with a 17p deletion partnered with Roche), veliparib (four phase III studies ongoing including for triple negative breast cancer and squamous non-small cell lung cancer (NSCLC)), elotuzumab (multiple myeloma phase III partnered with Bristol-Myers Squibb) and Zinbryta (daclizumab - relapsing remitting multiple sclerosis partnered with Biogen). The company has an agreement with Infinity Pharmaceuticals for the development and commercialization of the latter's oncology candidate duvelisib (IPI-145).

AbbVie reported total sales of $18.79 billion in 2013, up 2.2%.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.




This article appears in: Investing , Stocks

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