Is AbbVie Stock a Buy Now?

Leading healthcare company (NYSE: ABBV) appears to be hungry for deals to help it diversify its revenue streams. That's because it will need to become less reliant on Humira, its blockbuster rheumatoid arthritis drug, which is losing patent protection. One example of this came in 2020 when it closed on a massive $63 billion acquisition of Botox maker Allergan. To further diversify its operations, the company recently announced another acquisition.

On Nov. 30, AbbVie announced plans to acquire oncology company ImmunoGen (NASDAQ: IMGN) for approximately $10.1 billion. It will fund the deal through cash. The acquisition will help strengthen AbbVie's portfolio, giving it a promising asset in Elahere. Elahere is an antibody-drug conjugate (ADC) that regulators have approved for treating platinum-resistant ovarian cancer. Analysts project that at its peak in 2029, the therapy will generate annual revenue of over $1.4 billion.

Unlike other cancer treatments and therapies which can damage other healthy cells in the process, ADCs target cancer cells and can lead to better results for patients. ImmunoGen has other ADCs in its pipeline, though nothing that's beyond phase 2 trials. But with years of experience working on them, the company would instantly improve AbbVie's growth opportunities within oncology.

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Source Fool.com