Kevin Simpson bought AbbVie. He says so in a headline. Nobody asked.
The pitch: next-generation blockbusters. Skyrizi and Rinvoq in immunology. A growing neuroscience business. A dividend on top.
Next generation. Think about that phrase. It means the last generation is leaving. Humira, AbbVie's old cash cow, lost U.S. patent protection in 2023 and biosimilars showed up. The company needed heirs. It found some. Congratulations to the family.
Kevin calls this a new chapter. A chart calls it a drawdown followed by a bounce. The chart does not need a narrator.
The dividend is the real hook. Retail traders love a dividend. It's a tiny allowance for owning something. Mom sends you twenty dollars. AbbVie sends you a few dollars per share each quarter. Both say the same thing: please stop calling.
Kevin is optimistic. Fine. Optimism is free. So is a headline. The stock charges you for the privilege of agreeing with him.
Here's the technical read. Price goes up. Price goes down. A man writes a article about why he feels good. The price does not read the article. The price has never read an article. The price is a number with no hobbies.
Pharma investing comes down to one belief: a laboratory will do something expensive and legal. Sometimes it does. Sometimes a trial fails on a Tuesday and your blockbuster becomes a very pricey press release.
Kevin bought the story. The story had a dividend attached, like a free pen at a timeshare presentation.
Hold AbbVie for the next blockbusters, Kevin. When they arrive, they'll be on the same chart as everything else, and you'll still be deciding if you feel good about it.
Photo by Myriam Zilles on Unsplash
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