Should Investors Worry About AbbVie?

Pharmaceutical giant AbbVie (NYSE: ABBV) has built a good business on its long-running exclusivity of the world's top-selling drug, Humira, used for treating arthritis. However, Humira will lose its patent protection in 2023, and a handful of biosimilars -- that is, "copy cat" versions of the drug made by competitors when a patent expires -- will enter the market.

Competition for Humira may seem scary since it represents more than a third of AbbVie's sales. But before investors panic, let's look at why things may not be as bad as they seem.

It shouldn't be a stretch to call Humira's upcoming patent expiration the "elephant in the room" with AbbVie's management. The company knew this was coming and has steadily taken steps to counter the looming drop in sales that will likely occur as competing products begin to flood the market at lower prices.

Continue reading

Source Fool.com