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

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Summary:
AbbVie reported first quarter EPS of $0.71, surpassing the Zacks Consensus Estimate and year-ago EPS of $0.68. Revenues increased 5.4% to $4.563 billion in the first quarter of 2014, surpassing the Zacks Consensus Estimate of $4.328 billion. Results were boosted by Humira's strong performance. We expect 2014 to remain challenging as the company absorbs the impact of the loss of exclusivity on the lipid franchise. However, this year should be catalyst rich for AbbVie as it continues to invest in its pipeline. We expect investor focus to remain on the company's all-oral, interferon-free therapy with/without RBV which could be launched later this year. We remain Neutral on the stock. While positive on the strong late-stage pipeline, dividend yield and growth strategy, we remain concerned about AbbVie's dependence on Humira.

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 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, hepatitis C virus (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 data from the first phase III study due on the second half of 2014 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 (phase III ongoing for triple negative breast cancer and squamous non-small cell lung cancer (NSCLC)), elotuzumab (multiple myeloma phase III studies ongoing with results due in early 2015 partnered with Bristol-Myers Squibb) and daclizumab (relapsing remitting multiple sclerosis partnered with Biogen).

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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