Biotech Values

[jbog]

Barrons has a nice article on Abbvie:

AbbVie shares are down 13% year to date, and now carry the lowest valuation in Big Pharma. That’s a buying opportunity.

At 13 times projected 2015 earnings, AbbVie trades at a 24% discount to the Standard & Poor’s 500 index. Big Pharma, including U.S. giants like Pfizer, Merck, and Bristol-Myers Squibb, sells for a median premium of 17% to the S&P 500. AbbVie’s discount would be warranted if the company had no means of replacing profits from its blockbuster arthritis medicine Humira, which goes generic in the U.S. next year, and in 2018 in Europe. In fact, AbbVie has an excellent pipeline of new medicines and strong free cash flow—and a brighter growth forecast for the next three years than some companies with much pricier shares

http://online.barrons.com/articles/abbvie-big-pharma-at-a-discount-price-1423294229?mod=BOL_hp_highlight_2