AbbVie Could Be a Good Defensive Play

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The company’s blockbuster drugs all reported sales increases in the latest quarter.

Biopharmaceutical company AbbVie  (ABBV) – Get AbbVie, Inc. Report is a good defensive play for investors since it generates high profit margins and provides a decent dividend yield of 4.41%, says Real Money’s Stephen “Sarge” Guilfoyle.

The company’s second quarter earnings were good – its adjusted EPS was $3.11, which was a beat, and their revenue generation totaled $13.96 billion, which also beat estimates. AbbVie generated year-over-year earnings growth of 33% on revenue growth of 33.8%.

AbbVie is a long-term hold for Guilfoyle since the pharma behemoth “is in the minority in my pharmaceutical/healthcare portfolio as it has nothing to do with preventing or testing for Covid,” he wrote in a recent Real Money Pro Column. “What AbbVie does is make money, a lot of it in an adjusted sort of way (which counts), and the firm pays shareholders to stick around.”

The company’s blockbuster drugs all reported sales increases – sales of Humira, an arthritis and psoriasis drug, increased 4.8% to $5.07 billion while cancer drug Imbruvica reported an increase of rise 7.2% to $1.38 billion and Botox Therapeutic revenues more than doubled to $603 million. Other drugs such as the global immunology portfolio reported sales of $6.12 billion, up 15.1% and in the U.S. sales where the patent is still in good standing rose by 7.1% to $4.26 billion.

AbbVie also got good news recently — the company received a court ruling upholding four patents linked to Imbruvica, which “protects what was almost $1.4 billion in revenue over the past three months and more like $5.3 billion over the past year.

Guilfoyle has a price target of $143 for AbbVie.

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Harry Byrne

Harry Byrne

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