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ny with strong operations

across
multiple facets like Immunology, Oncology, Neuroscience, Aesthetics and Eye c
are. It became an indep
endent entity in 2013 after

splitting from their parent company, Abbot Laboratories. Since their inception they have consistently
met or exceeded total revenue and adj
usted EPS guidance. Their revenues have risen at a 13.6% CAGR for the period between 2013-2020

and diluted EPS at 18.

92% CAGR. It has consistently provided increasing dividends. In 2019, AbbVie acquired Allergan for
$63 billon. The offer represents a 45% premium to Allergan’s 10-day volume weighted average share
price as of June 24, 2019 and provided immediate value to Allergan’s stakeholders and long-term
potential. AbbVie got strong positions in Botox therapeutics, medical aesthetics and eye care due to
this acquisition to go with its earlier strong operations in immunology, hematologic oncology and
neuroscience. The acquisition would result in $2 billon dollars in synergies and cost attributed to
combined company R&D budget, SG&A expenses and manufacturing and supply chain procurement
savings. It would also enable a 10% accretion over the first year. Humira and Imbruvica are the
top two selling products and revenue contributors for AbbVie. Although AbbVie’s Humira is its
major revenue source contributing to over 50% of revenues in 2021, its patent has expired in Europe
and is due to expire in US in 2023 causing new competitors to enter the market. Thus, the acquisition
of Allegran was a strategic move to expand business and mitigate losses by acquiring a $16 billion
dollar revenue
company. With the Humira patent expiring in US soon, AbbVie has developed Skyrizi and Rinvoq
through its R&D program (regulatory approval expected for some expected soon in 2022) and
transformed immunology from a single product to a portfolio of differentiated therapies. AbbVie also
expects peak sales of both to exceed Humira peak revenues by 2025 and generate more than $15
billion global sales. There are also several other therapies in pipeline pending approval. With
Imbruvica’s comprehensive efficacy as well as strong safety data and venclexta ‘s positive potential,
AbbVie has established itself as a leader in hematologic oncology. AbbVie is also trying to establish
itself in neuroscience space by building a portfolio for patients in migraine spectrum. It expects over
$1 billion dollars in peak sales from Ubrelvy and qulipta and is currently in phase three for Botox. It
has also experienced growth in psychiatry and neuro-degeneration space through its Vraylar capsules.
AbbVie sees strong revenues and growth in Aesthetics and Eye care. It has increased investments,
accelerated R&D programs and developed a novel product pipeline to maximize the output from the
same. It has invested $6.7 billion in R&D and done 185+ clinical trials which has resulted in 21 major
products or indication approvals. Thus, AbbVie has taken major projects to recoup losses it will incur
from the expiry of its Humira patents. Following 2023 the slowdown needs to be monitored and
whether it can get back to strong top line growth in 2025 and beyond with its new projects needs to be
seen.