AbbVie Inc. (ABBV, Financial) has authorized Mylan NV (MYL, Financial) to market a proposed biosimilar of Humira in the U.S. and other non-European countries.
The licensing agreement is non-exclusive and allows Mylan to sell its biosimilar in the U.S. beginning on July 31, 2023. AbbVie will receive royalties on net sales from Mylan.
The U.S. license of Mylan won’t be accelerated by the entries of Amgen (AMGN, Financial) and Samsung Bioepis (BIIB, Financial). The global resolution with Amgen and Samsung Bioepis will enter the U.S. in 2023, respectively on Jan. 31 and on June 30.
Humira is the trade name under which AbbVie produces and sells Adalimumab, an active ingredient used for the treatment of rheumatoid arthritis, psoriasis, ankylosing spondylitis, Crohn's disease, ulcerative colitis and several other conditions.
Humira is the flagship in the portfolio of products. AbbVie makes about 60% of its revenue with the sale of its Adalimumab.
On Tuesday, AbbVie closed at $95.41 per share, 0.87% down from the previous trading day with a volume of 5,107,476 shares. The average volume of shares traded over the last three months and 10 days is 8.11 million and 4.94 million.
The stock is trading underneath the 200, 100 and 50-SMA lines and is about 2.3% below the midst of the 52-week range of $69.38 to $125.86 per share.
AbbVie has a price-book ratio of 42.61 times versus an industry median of 2.96 times, a price-sales ratio of 5.16 times versus an industry median of 3.25 times and a price-earnings ratio of 24.03 times versus an industry of 26.44 times.
AbbVie is offering a forward annual dividend of $3.84 per share, granting 3.96% and an earnings yield of 4.2%.
The stock has a 2.4 out of 5 recommendation rating and an average target price of $113.05 per share.
The forward price-earnings ratio is 12.33 times. When that ratio is multiplied by an earnings per share of $7.81, it yields a value of $96.3 per share. When it is multiplied by an earnings per share of $8.95, it yields a value of $110.36 per share. The earnings per share of $7.81 and $8.95 are what analysts are projecting for full fiscals 2018 and 2019.
Mylan N.V. (MYL, Financial) is trading at $36.37 and slightly below the 52-week range of $29.39 to $47.82 per share. The stock has a price book ratio of 1.42 times, a price-sales ratio of 1.63 times and a price-earnings ratio of 27.14 times.
The company is not distributing dividends to its shareholders. The earnings yield is 3.7%.
The forward price-earnings ratio is 6.8 times versus an industry median of 20 times. For full fiscals 2018 and 2019, consensus is for an earnings per share of $5.29 and $5.85.
The recommendation rating is 2.1 out of 5 and the average target price is $48.79 per share.
(Disclosure: I have no positions in any security mentioned in this article.)
