grapesharvester schreef op 7 februari 2015 21:21:
AbbVie: Big Pharma at a Discount Price - February 7, 2015
By JACK HOUGH
February 7, 2015
Worried about the patent cliff for Humira, the world’s best-selling drug, investors have fled AbbVie
At 13 times projected 2015 earnings, AbbVie (ticker: ABBV) trades at a 24% discount to the Standard & Poor’s 500 index. Big Pharma, including U.S. giants like Pfizer (PFE), Merck (MRK), and Bristol-Myers Squibb (BMY), sells for a median premium of 17% to the S&P 500.
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Then there’s the pipeline. AbbVie is currently testing treatments for celiac disease, leukemia, and endometriosis, a painful uterus condition that affects millions. It’s also testing a next-generation treatment for rheumatoid arthritis. Within eight years, today’s pipeline will contribute at least $7 billion in annual revenue, double what’s needed to offset Humira declines, according to Deutsche Bank.
Two more things. First, AbbVie pays royalties to Humira’s developers. When the patent goes away, so do the payments. That means revenue declines will be offset in part by higher gross profit margins. Second, AbbVie is expected to generate $7.1 billion in free cash flow this year, almost 8% of its stock market value—and even more in each of the next three years. That can pay for share repurchases and bigger dividends—or an acquisition. A deal could help diversify AbbVie’s revenue and, so long as the price isn’t extravagent, close the stock’s Humira discount.
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editors@barrons.com----- hier wordt nog geen directe link gelegd met Galapagos, maar scary is dit wel voor een zelfstandig Galapagos.