Merck and AbbVie Are Facing Big Patent Cliffs, But Here's Why Both Are Still Buys
Drug companies Merck (NYSE: MRK) and AbbVie (NYSE: ABBV) have been two of the best pharmaceutical investments, easily delivering better total returns than the S 500 average over the past three, five, and 10 years.
However, as it is often said, past performance is no guarantee of future success. Both companies are coming off record years in terms of revenue and face the prospect of decline in the next few years because of significant patent expirations affecting their lead drugs.
I don't think it's time to abandon either stock, however. The two companies have been preparing for these patent cliffs for a while, and through their huge pipelines and willingness to spend to acquire promising therapies, they have the wherewithal to get back to increasing revenue in a short period of time.
Source Fool.com
AbbVie Inc. Stock
The stock is an absolute favorite of our community with 31 Buy predictions and no Sell predictions.
As a result the target price of 180 € shows a slightly positive potential of 3.26% compared to the current price of 174.32 € for AbbVie Inc..
