Pharmaceutical company AbbVie Inc. (ABBV, Financial) announced Aug. 27 that it has received approval from the U.S. Food and Drug Administration for Imbruvica (ibrutinib) to be used in combination with Roche's (XSWX:RO, Financial) Rituxan (rituximab) as a treatment for adult patients who are affected by Waldenström's macroglobulinemia.
According to the American Cancer Society, Waldenström's macroglobulinemia is a type of non-Hodgkin lymphoma, which produces abnormal levels of immunoglobulin M, or IgM. The condition causes excessive bleeding, disturbed vision and neurological problems.
This form of non-Hodgkin lymphoma also leads to anaemia and a decline in the number of white blood cells.
This rare form of cancer is incurable.
Following the FDA’s approval, the information on the patient package insert of Imbruvica will contain indications on the combined use with Roche's Rituxan.
Imbruvica-Rituxan is the first approved chemo-free combination treatment for Waldenström's macroglobulinemia adult patients in the U.S.
With a $147.56 billion market cap, AbbVie is trading at $97.45 per share on the New York Stock Exchange. The stock has fallen 1% so far this year and the share price is below the midpoint of the 52-week range of $72.56 to $125.86.
AbbVie has a price-sales ratio of 24.19 versus an industry median of 23.77 and a price-sales ratio of 5.03 versus an industry median of 3.10.
The forward price-earnings ratio is 12.45 versus an industry median of 21.60. For fiscal 2018, analysts are projecting earnings of $7.87 per share.
AbbVie is paying dividends to its shareholders. The forward dividend is $3.84, granting a yield of 3.94%.
Roche Holding AG is trading at $30.88 per share with a market capitalization of $211.83 billion. The stock has fallen 3% year to date and the share price is slightly below the higher end of the 52-week range of $26.30 to $32.42.
Roche has a price-earnings ratio of 20.18 and a price-sales ratio of 3.79. The price-book ratio is 7.68 versus an industry median of 2.64.
The company is also distributing part of its levered free cash flow to shareholders. The forward annual dividend is $1.08, granting a yield of 3.54%.
Disclosure: I have no positions in any securities mentioned in this article.
