Famous investor Mohnish Pabrai once said that one of his preferred way of finding investment ideas is to look for spin-offs. AbbVie Inc is a well-known biotechnology company in the US. It was born out of a spin-off from Abbott Labs back in 2013. AbbVie was the manufacturing and pharmaceutical arm, while Abbott focused more on diagnostics and medical devices. The spin-off appears to have been quite successful as AbbVie generates revenue in excess of $40 billion. Recently, AbbVie bought another company Allergan that is well-known for the beauty treatment botox. AbbVie is a biotech major on its own right now, and it is well and truly out of the shadow of its previous parent Abbott Labs. If you are an investor looking for the best medical stocks to invest in, then companies like AbbVie can be worth exploring in more detail.
AbbVie Business Information
AbbVie has a portfolio of drugs. It markets these drugs in more than 170 countries around the world. AbbVie specializes in leukemia, oncology, and arthritis. However, its most successful drug is Humira, used to treat Crohn’s disease. It is under patent protection and brings in about 45% of AbbVie’s revenue. However, the drug is coming off patent, and AbbVie will have to build up revenue from its other products. The acquisition of Allergan appears to have been made with Humira’s patent expiry in mind, as that would diversify the revenue mix for AbbVie. Besides AbbVie’s research capabilities, one more factor that attracts investors is its dividend-paying track record. AbbVie regularly increases its dividend payments. If we count the time before AbbVie’s spin-off, then the business has increased dividends every year for the last 48 years. Such consistency makes AbbVie one of 2021 best medical stocks.
AbbVie’s stock trades on the New York stock exchange under the ticker symbol ABBV. The stock last closed at $114 on 6th August 2021. On that day, AbbVie was trading at an attractive dividend yield of 4.5%. The price of the stock was not far from the 52-week high of $119.