AbbVie Inc.

Overview Key strengths Key risks AbbVie has a market-leading position in the high-margin, patent-protected market for prescription drugs, which is relatively insensitive to the business cycle. High revenue concentration (37%) in AbbVie?s leading product, Humira, with U.S. patent protection expiring in 2023. Profitability (adjusted EBITDA margins of 51%) are strong even relative to peers. AbbVie has a more aggressive financial policy than most Big Pharma peers, with a tolerance for leverage above 3x, at least intermittently following M&A Solid portfolio with 12 blockbuster drugs in several therapeutic areas, including several recently launched products with promising growth potential. Political pressures on pharmaceutical pricing in the U.S., where profitability is highest. AbbVie benefits from the same high barriers to entry, good pricing

...AbbVie is a leading branded pharmaceutical company with good positions in several therapeutic areas. AbbVie benefits from the same high barriers to entry, good pricing power, strong profitability, and limited sensitivity to the business cycle as other rated Big Pharma peers. The company's scale (2021 revenue of $56 billion) and profitability (adjusted EBITDA margins of 51%) are greater than most peers. Conversely, its high product concentration (top product, Humira, representing 37% of revenue in 2021), geographic concentration (77% of revenue in the U.S.), and level of investment in research and development (R&D, 13% of revenue, compared to peers averaging about 19%) are weaknesses relative to peers. The company has a uniquely robust commercial presence, backing its dominant position in immunology, and the highest revenue-generating product in the industry, Humira ($20.7 billion in annual sales)....

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