AbbVie (ABBV)

History of the Company

AbbVie has been trading as a separate company on the NYSE since January 2013. Before then, it was part of Abbott Laboratories, a pharmaceutical manufacturer and researcher from Illinois, USA. Abbot decided to split their operations between Abbot, which would make appliances and equipment, and AbbVie, which would be their research-based pharmaceutical producer.

The pharma side, which became AbbVie, had seen huge success with its Humira product, whose license was about to expire. AbbVie immediately began to acquire other pharma manufacturers and patents, including ImmuVen and duvelisib, in partnership with Infinity Pharmaceuticals.

AbbVie’s research and production has been based on immuno-suppressants and drugs which alleviate side effects of other treatments. In that vein, it has a licensed, cannabis-based product on the market called Marinol. This product helps patients cope with chemotherapy treatment by making them less nauseous.

Trading AbbVie: What You Need to Know

  • AbbVie stocks opened at $33.00 USD on the NYSE on 14 December 2012, prior to the company’s launch the next month. They performed steadily until the second half of 2017, when they experienced a sharp rise in investor interest.
  • It was at this time that AbbVie launched Humira. It faced legal battles with other, similar products, as well as doubts the product would be completely safe.
  • Despite these fears, AbbVie stock rose to a high of $123.21 USD on 26 January 2018.
  • As of 28 December 2018, shares were valued at $91.12 USD.
  • Marinol is only one of AbbVie’s pharmaceutical products. While the company is in a position to ride the cannabis wave, it is unlikely to suffer if legislation is slow in coming. Some investors see AbbVie as a sound investment because the company is not overly exposed to a single product, unlike other pharmaceutical operations.
  • On the NASDAQ exchange, AbbVie shares have suffered a minor slump at the end of 2018. This has not affected investor confidence, however. Over the year, shares are expected to perform steadily. Early 2019 could see AbbVie at its lowest value for the foreseeable future.
  • The Humira scare has largely been forgotten about, and AbbVie have produced Imbruvica and Mavyret. These are non-cannabis products, aimed at helping cancer and HIV patients. These products alone were worth $4 billion to AbbVie in 2018.
  • Upcoming products by AbbVie include Venclexta, Orilissa, risankizumab and upadacitinib. These have been given the green light by the US Food and Drug Administration (FDA), and are likely to be excellent earners for the company.
  • Abbvie’s dividend yield for 2019 is expected to be 4%.

Anyone who wants to invest in AbbVie stocks should analyze the pharmaceutical sector, especially as it applies to cannabis projections.

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