Thursday, April 03, 2014

AbbVie's IV Lifeline Still Humira

Investors in AbbVie (ABBV-$53.34) are reminded each quarterly earnings release of the continued importance of Humira to the drug maker's success.  AbbVie's flagship drug, an efficacious treatment for autoimmune diseases like rheumatoid arthritis (RA) and psoriasis, contributed $10.7 billion in global sales (56% of worldwide revenue of $18.8 billion) last year.

AbbVie is spending more than 16% of annual sales to develop a pipeline -- including promising treatments for multiple sclerosis, blood cancers, and hepatitis-C (across all patient types) - with the goal of reducing its dependence on Humira. Fortunately, the Chicago-based drug manufacturer has a stable of off-patent, legacy drugs that contribute sizable sales to this R&D effort.

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy. 

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