Pharma stocks haven't been outstanding investments since the central bank began hiking rates in 2022. The core reason is that these companies depend on innovation to create value for shareholders -- an inherently risky endeavor.

AbbVie (NYSE: ABBV) has been one of the few exceptions to this trend. Despite losing exclusivity for its flagship immunology medication Humira in the U.S. in 2023, the drugmaker's shares are up by a healthy 30% over the past 12 months (total return, including dividends), even outpacing the red-hot S&P 500.

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Source Fool.com