The renewed government attack on drug pricing, combined with allegations of price-fixing among generic drug manufacturers, took out the shine for investing in drug stocks. Investors looking for growth have few choices. AbbVie (NYSE:ABBV) stands out.
AbbVie not only has a healthy dividend yield of 4.7%, even after bouncing back from the $85 lower, but has many new products set for launch. This will offset the cash flow drop after its Humira patent expires. Its cash flow is at more than double its dividend payout.
Regeneron (NASDAQ:REGN) is getting held back because of worries over government scrutiny on Eyelea pricing. Still, the company has plenty of other drugs in the works. Dupixent is a blockbuster drug that treats atopic dermatitis and faces little competitive pressure.
AbbVie’s JAK inhibitor, a once-a-day oral drug, is still in clinical evaluation. Pfizer’s Eucrisa (Crisaborole) does not have the same efficacy as Dupixent. And Regeneron won the FDA’s approval for treating asthma with Dupixent.
