AbbVie Inc.

“AbbVie has successfully navigated the Humira biosimilar cliff, with Skyrizi and Rinvoq on track to exceed $25B in peak sales, durable Botox cash flows, and ~$20B in annual FCF — making it a genuinely strong franchise; however, $67.5B in debt, $91.5B in negative tangible book value, IRA pricing headwinds, and JAK inhibitor safety tail risk combine with fair (not cheap) 13x forward earnings pricing to cap the risk/reward, with a 10-year CAGR of ~9-10% that is respectable but not exceptional enough to justify an aggressive allocation when no margin of safety exists at $215.”