Investing is like the weather. Always changing and always a risk. Planning and staying informed is always important.
There is a lot of pricing pressure coming from all angles not just between companies but from payers and governments. The foreign markets will probably even be tougher, not to mention more companies entering into the market place. I too was not comfortable with the HEPC comments from management. I think they are probably conservative with what they have in their plans for Viekira Pak in 2015 since no dollar amount was mentioned only the year end run rate of $3Billion. Is the Japanese clinical product a one or two pill combo?. It looks like they have a next generation Hep C product in Phase IIB trials that if successful will be moving into Phase III in 2015.
Only statement that I heard is Abbvie would continue to buy back shares of the previously announced buy back plan. Did not hear any thing that would indicate an additional buy back plan.
You need to pay more attention to the conference call. There is no comment stating that they will have $3 Billion in Viekira Pak sales in 2015. The sales figure was never released and most companies do not release individual sales figures in guidance. The $3 Billion figure is the estimated run rate for December 2015 sales which would carry over into 2016. This was clarified several times during the conference call.
If you are referring to the Abbott Dividend, it was increased 2 cents per share per quarter (9%) starting with the February dividend payment.
Why does people make uninformed comments on these boards? The dividend was just increased 9% payable with the February dividend.
Both Gilead and Abbvie Hep C products will have a short life cycle due to next generation of products which will be on the market in 12 to 18 months. The only thing Abbv product has going for it is they do not have to re-coop $11B that Gilead paid for their product in such a short period of time, although Abbvie does have substantial development costs that probably have already been included in income. I agree the Abbvie Hep C product is a disappointment but I do not know or can I guess what their current margins are with the discounting. I am sure that Abbvie had planned to come into the market with price intentions since they were not first to market and do to the inconvenience of the product..
EPS all four quarters 2014 beat estimates and 2015 guidance was solid and in line with estimates. Abbott looks to be pretty solid going forward. Good growth, continues good margin improvements and solid EPS growth. Did not decrease guidance like some many international companies are doing this quarter.
Give the board the details of this contract for Viekira and what the margins are for these contracts. If you can not come up with credible info than it will be difficult for readers to take you seriously.
Never fall in love with a stock and let emotion take over for sound business judgement. Don't waste your time pumping a stock and dreaming about pie in the sky M&A's but spend your time wisely studying the company and its competition.
With the dollar strength in the 4th quarter ABBV foreign sales are going to be negatively impacted. They may even miss revenue guidance. Dollar evaluations are hurting all companies with foreign sales in the fourth quarter.
Wineilli, what does Merck Hep C drug have to do with either Gilead or Abbvie Hep C drugs? They are not even in the same drug class. Drug patent expiration will not be the issue. Both Abbvie and Gilead's today's Hep C drugs will be obsolete in the next 12 months when the next generations of Hep C drugs hit the market. Hopefully one or both companies will still be in the running with a new drug. The company with the largest dependence on revenue and margins on today's version will have the most to loose. Hopefully Gilead is amortizing their $11 Billion purchase for their drug over a very short period of time or they will be holding the bag for a large write-off..
Instead of making a general statement give us some specifics of side effects and risk factors and where such concerns were sited. I have read most of the clinical details on Gilead and Abbvie Hep C and have not seen such concerns on either companies drugs. Both products are very well tolerated and comparable to their highly effective rates. Gilead's drug does have a better convenience factor. Unless you are blowing smoke like a lot of people lately have been doing lend some credibility to your statement and give us your specifics and where you ascertained you info.
I am sure they would be happy with 75% of the current sales. That would still be $10 Billion a year. The difficulty of new bio-simiiars will be the many patents that Abbv has pertaining to the manufacturing processes. I think Abbv will be well into the next generation of Humira and will obsolete current product. Also, patients currently successfully enrolled in Humira treatment will be difficult to change to a new form of treatment.. Some price erosion will happen and future growth will definitely slow down.
Gilead will have a significant problem recouping their $13 Billion investment if they need to compete on price. Nice run while it lasted. Their real challenge will come with the introduction of next Generation HCV products since they no longer have a monopoly on the market.
FDA submission was somewhere in April 2014 with a fast track approval by the FDA. Markets price in the potential market growth well in advance of actual market introductions. Closing price April 1st was $50.87.