AbbVie Inc.

Overview Key strengths Key risks Market-leading position in the high-margin, patent-protected market for prescription drugs, which is relatively insensitive to the business cycle. More aggressive financial policy than most Big Pharma peers, with a tolerance for leverage of 2x-3x. Good product diversity with 11 blockbuster drugs, and no product expected to represent more than 30% of revenues over the next four years (2024-2027). Below average investment in internal R&D (about 14% of 2023 and 11% of 2022 revenues), which we believe increases reliance on M&A to support long-term growth. A dominant market position in the market for immunology (autoimmune diseases) drugs, supported by clinically differentiated products and a uniquely robust commercial organization. Relatively high proportion of revenues (77%) in the

...AbbVie is a leading, global, branded biopharmaceutical 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 (2023 revenue of about $54 billion), profitability (adjusted EBITDA margins of 48%), product diversity (top product expected to represent less than 30% of...

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