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.
Abbvie stock is up 27% YTD and the approval of HVC has been priced into the stock over the past several months. I do not know what the discount is to Express Scripts but keep in mind Abbvie did not buy their product for $13 Billion as did Gld. which leaves a lot of room to reduce price and still walk away with plenty of margin and market share. Greed and over paying for a product opens the doors for competition.
Call Abbott Investor Relations up and see if this direction is really coming from Abbott Laboratories. Sounds to me that it could very well be your brokerage company not wanting to deal in lots smaller than 100 shares. I ran into this situation several years ago with a broker (Not with Abbott shares but with some other stocks) giving me the same pitch and I immediately transferred everything in the account to my other broker.
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.
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.
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..
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.
Share with us, what was the discount that Gilead gave CVS? Also share with us, What was the discount that Abbv gave to Express Scripts? If you do not know either of the details than you have no credibility to discuss what the margin impacts are going to be on either company. One thing for certain Abbv did not pay $13 Billion for their product as did Gilead. However, I am certain they do have a sizable in house investment that will need to be recovered in the Abbv margin.
I would suspect this deal has been in the making for some time and both Express and Abbv lawyers reviewed this proposal forwards and backwards. Abbv can charge whatever price and discounts they so desire as long as they did not collude with their competitors. Express Scripts may be the ones that will have some explaining to do for not offering Gild products and the individual having to pay the price difference. At this point in time we do not even know what the agreement on price is. Just the difference between $83m and $93M for 12 weeks is a big enough difference for the Express decision.
Thought you sold all your Abbv shares?? If so, go whine on the GILD board. You will be in good company, There are a lot of whiners over there.
If you are referring to the Abbott Dividend, it was increased 2 cents per share per quarter (9%) starting with the February dividend payment.