Allergan acquisition to strengthen AbbVie’s economic moat

AbbVie was both opportunistically taking advantage of Allergan’s low valuation and looking to diversify its cash flows away from Humira, Morningstar analyst believes

Damien Conover, CFA 26 June, 2019 | 10:21AM

Abbvie-Allergan

 

Earlier this week, AbbVie (ABBV) announced its plans to acquire Allergan (AGN), the maker of Botox, in a US$63 billion deal. We believe that adding Allergan’s portfolio of branded drugs should help strengthen AbbVie’s narrow economic moat, that was partly dependent on immunology drug Humira.

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About Author

Damien Conover, CFA

Damien Conover, CFA  Damien Conover, CFA, is director of healthcare equity research and equity strategy for Morningstar.

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