Do Humira Biosimilars Threaten AbbVie's Dividend?
Pharmaceutical giant AbbVie (NYSE: ABBV) is known for its top-selling drug Humira and its lucrative dividend that yields more than 4% at the current share price. This week Humira, which treats autoimmune diseases, is facing the first of a flood of biosimilar generics hitting the market at lower prices.
Humira is a longtime blockbuster that has generated billions in profits for AbbVie, so it's fair to wonder how competition will impact AbbVie's bottom line. More specifically, will the company's beloved dividend come under pressure if profits fall?
Answering these questions will require understanding the foundation of AbbVie's dividend payout and what other products might help make up for the potential drop in Humira sales.
Source Fool.com
