ABBVIE

Analysis of Abbvie share price

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Abbvie shares are among those from the various large companies that you are able to trade in online or buy directly to add to your stock market portfolio. But of course before you invest in this asset you should ensure you have the necessary knowledge to achieve a comprehensive analysis of this asset. In fact, here we will provide a presentation of this company with details on its different activities as well as its principal adversaries on the market and recent strategic alliances. We will also examine the advantages and disadvantages of these shares and the factors to watch for a fundamental analysis.

Elements that can influence the price of this asset:

Analysis N°1

Firstly, we would closely follow the development of new medications from Abbvie relating to medical requirements that are still not being satisfied by the treatments currently available on the market as well as the advances in the development of the same.

Analysis N°2

Obtaining the FDA authorisations and those of any other medical authority for the launch of any medical treatments worldwide are also significant events to follow.

Analysis N°3

In the same way, we would carefully monitor the strategic operations implemented by the Abbvie Group such as acquisitions that could enable this company to increase its revenue or compensate for any loss of revenue due to the expiry of its patents.

Analysis N°4

It is the same for strategic partnerships with other companies for the development of medications or synergies.

Analysis N°5

We would also pay careful attention to this company’s competition in this activity sector and notably that relating to bio-similars outside the United States on the expiry of its principal patents.

Analysis N°6

Finally, the major competitors of Abbvie, these are the principal American and international laboratories, should also be subject to particularly careful attention.

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General presentation of Abbvie

We shall now take a few minutes to examine the Abbvie Group with a full and detailed presentation of this group and explanations on its activities. This information will assist you in understanding how this group may develop over the coming years.

Abbvie Inc. is an American group that exercises its activities in the pharmaceutical sector. More precisely, this company is specialised in the sector of research and development of therapeutic treatments.

The products developed by Abbvie are mainly destined for the treatment of rheumatoid arthritis, psoriasis, Crohn’s disease, thyroid, Parkinson’s, HIV, cystic fibrosis complications, low testosterone levels and complications related to chronic renal illnesses.

It can also be advantageous to know the geographical distribution of the Abbvie Group’s revenue. This is as follows: 71.9% of its turnover is generated in the United States, 3.7% in Japan, 2.7% in Germany, 2.4% in Canada, 2.1% in France, 1.4% in Spain, 1.1% in the United Kingdom, 1.1% in Italy, 0.5% in Holland, 1.1% in Brazil and 12% from other countries around the world.

Analysis of Abbvie share price
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The major competitors of Abbvie

Now that you are more familiar with the Abbvie Group and its activities we offer you the opportunity to learn more in detail about the competitors to this group in its activity sector:

Pfizer 

The American pharmaceutical group Pfizer is of course a major competitor of the Abbvie Company. It exercises its activities in over 150 countries and is the leader of this sector in terms of turnover. The Pfizer Group currently employs over 81,800 people around the world, 3,000 of which are in France alone. The group particularly owes its success to its development based on mergers with competitive companies.

Roche Holding

Still related to the major competitors of the Abbvie Company we find the Roche Group, a Swiss pharmaceutical company and one of the world leaders in this sector. This group’s activities lie in two parallel sectors, pharmaceuticals and diagnostics. The group however focuses essentially on individualised medicines. Roche currently exercises its activities in 150 countries worldwide although its registered office is in Bale, Switzerland. It employs over 94,000 people.

Bristol-Myers Squibb

Also known under its initials BMS, this American pharmaceutical company came about through the merger of the Bristol-Myers Company and the Squibb Corporation in 1989. It is one of the principal groups in the pharmaceutical sector worldwide and is therefore a major competitor of Abbvie.

Merck 

Still on the subject of the competitors of the Abbvie Company, we find the German company Merck KGaA which is based in Darmstadt. This is also one of the largest companies in the pharmaceutical sector, as well as the chemicals sector, worldwide.

AstraZeneca 

Finally, the last significant competitor to Abbvie we shall examine is the British giant AstraZeneca. This company was created through the merger of the Swedish Astra company and the British company Zeneca in 1999.


The major partners of Abbvie

As we have just noted, the Abbvie Group has a number of serious competitors in this sector. Luckily this company regularly implements strategic partnerships with other companies that enable it to gain in terms of productivity or profitability. Here are two particular examples that will assist you in understanding the advantages:

I-MAB

Firstly, in 2020, the Abbvie group created a strategic partnership with the Chinese company I-MAB in the sector of differentiated immunological therapy. The American laboratory will thereby work with the Chinese pharmaceutical company for the development and sale of the I-MAB highly differentiated monoclonal antibody anti-CD47 which is an anti-cancer Lenzoparlimab medication.

Genmab

Another strategic partnership that the group recently implemented was also in 2020 with the Danish biotechnological company Genmab. This partnership relating to the oncology sector had the objective of developing and selling three particular Genmab products including the experimental medication against cancer, Epcoritimab. With this agreement, Abbvie was to make an initial payment of 750 million dollars to Genmab potentially followed by other payments and remuneration in stages reaching a possible total of 3.15 billion dollars.

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The factors in favour of a rise in the Abbvie share price:

Finally, and to go further in detail, we shall now examine the advantages and disadvantages of the Abbvie Company and its share price. We shall in fact explain the strong and weak points of this company in detail.

First and foremost we will now summarise the principal advantages of the Abbvie Group against its competitors on the market:

  • Firstly, we should particularly mention the medicinal pipeline that is being developed by Abbvie which is particularly large and diversified. The latter should create a growing source of revenue over the long term for this group.
  • Certain treatments developed by Abbvie also offer a strong potential and could therefore enable this company to further develop its revenue and presence on the market. Here we can for example note Upadacitinib that recently displayed positive results following completed clinical trials and that should be approved shortly by the FDA.
  • Still on the subject of the advantages of the Abbvie Company we can of course mention the significant production capacity of this company which guarantees a reliable supply chain for its clients. The group is thereby in a position to rapidly produce and sell its treatments and thereby stimulate its sales.
  • In the same way, the financial results of the Abbvie Company are another of its advantages as they boast a high gross margin and EBITDA margin as well as an equally strong ROIC. The significant growth of the cash flow over the last few years is also higher than that displayed by many other companies in this sector.
  • Finally, the last advantage of the Abbvie Group concerns the diversity of its pipeline which covers many health and scientific sectors including immunology, oncology, neuroscience, virology and general medicine.


 

The factors in favour of a drop in the Abbvie share price:

Of course, the Abbvie Group does not only offer advantages, it also has certain weak points that you should be aware of and take into consideration for your analyses. Here are the major negative points:

  • Firstly we should mention here the significant competition in this activity sector as a true weak point of the Abbvie Group since a number of its patents are approaching their expiry dates.
  • The group is also strongly dependant on the sale of certain products such as the Humira medication which alone generates 57% of the sales of this group, as well as Imbruvica and Mavyret.
  • Finally, the debt level of the Abbvie Group is fairly significant compared to its treasury. Its capital is also in negative figures which dampens the enthusiasm of investors to some extent.
The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

What are the last financial results published by the Abbvie Company?

The last results published by the American company Abbvie are for the 2019 financial year. These show a turnover of 33,266 million dollars. In the same year the net results are declared as 7,882 million dollars. At the beginning of the year 2020 the total stock market capital for this company stood at 110,942 million dollars.

Who are the major shareholders in the Abbvie Company?

The Abbvie company capital is owned to a significant extent by private shareholders of which the major ones are as follows: The Vanguard Group with a 8.07% shareholding, Capital Research & Management with 7.45%, SSgA Funds Management owns 4.55%, BlackRock Fund Advisors owns 2.50%, Fidelity Management & Research owns 1.70% of the shares, Geode Capital Management holds 1.50%, Northern Trust Investments holds 1.36%, Capital Research & Management International has a 1.26% shareholding, Orbis Investment Management owns 1.15% and Norges Bank Investment Management owns 0.95% of this company’s shares.

Which types of analyses should be completed on the Abbvie share price?

A comprehensive analysis of the Abbvie share price is achieved above all through the completion of several complementary analyses. It is therefore recommended that you implement a fundamental analysis of this asset, based on a study of the events, announcements and publications of this company and its activity sector as well as a technical analysis which is essentially based on an examination of the stock market charts with the trend and volatility indicators.

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