ABBV did not do much last week at all. That's ok because I have not bought it!
How about ABBV & CFLT for the acct with Big Pete? I like that.
Two big business-development deals appear to have renewed investors' interest in AbbVie. On Nov. 30, the company announced plans to buy
ImmunoGenfor $10.1 billion. A week later, AbbVie revealed that it intends to acquire
Cerevel Therapeuticsfor $8.7 billion. Both transactions appear to be smart moves that will bolster AbbVie's pipeline and, in the case of ImmunoGen, add an approved cancer therapy with fast-growing sales to its lineup.
Speaking of cancer therapies, investors also have a reason to be optimistic about AbbVie's epcoritamab. The drugmaker recently announced positive results for the experimental bispecific antibody in a phase 1/2 study for treating relapsed/refractory follicular lymphoma. The therapy has already been approved in both the United States and the European Union in treating certain types of large B-cell lymphoma. Analysts project that epcoritamab could generate peak annual sales of close to $3 billion.
I also think that the increasing prospects of interest-rate cuts next year could entice some income investors to shift money into AbbVie stock. Lower rates will cause bond yields to fall, but could provide a catalyst for stocks. AbbVie's
current dividend yield of 4% and its status as a
Dividend King could be a winning combination for income investors seeking better alternatives to bonds.