5 Healthcare Stocks to Watch Amid Senate’s Healthcare Bill

4. AbbVie Inc. (NYSE:ABBV)

Number of Hedge Fund Holders: 76

AbbVie Inc. (NYSE:ABBV) is a biotech company operating globally. It offers products like HUMIRA, which treats various autoimmune disorders as well as other conditions like intestinal Behçet’s disease. The company is based in North Chicago, Illinois. JPMorgan’s Chris Schott holds an ‘Overweight’ rating and $180 price target on AbbVie Inc. (NYSE:ABBV) shares as of this August.

Several of AbbVie Inc.’s (NYSE:ABBV) products may be negatively impacted by the Senate’s recent healthcare bill. The blood-cancer pill Imbruvica, arthritis and atopic dermatitis pill Rinvoq, and leukemia treatment Venclexta are some of the major products facing negotiated prices before the lapse of their patents. Imbruvica brought in $5.4 billion in sales for AbbVie Inc. (NYSE:ABBV) in 2021, while Rinvoq is expected to bring in $7.5 billion in sales by 2025, according to SVB Securities analyst David Risinger. Venclexta as well brought in $1.8 billion in 2021 sales. These products may end up facing negotiated prices by 2026, 2028, and 2026 again, respectively.

In the first quarter, 76 hedge funds were long AbbVie Inc. (NYSE:ABBV), compared to 82 funds in the previous quarter. Their total stake values were $3.6 billion and $3.7 billion respectively.

Carillon Tower Advisers, an investment management firm, mentioned AbbVie Inc. (NYSE:ABBV) in its first quarter 2022 investor letter. Here’s what the fund said:

“Stock selection contributed the most while sector allocation was also positive. An underweight to communication services and an overweight to energy helped performance, while an underweight to consumer staples and an overweight to materials detracted. Stock selection was strong within healthcare and materials but was weak within information technology and industrials. AbbVie (NYSE:ABBV) is a research-based biopharmaceutical company. Shares gained after the company reported earnings that missed revenue but beat earnings-per-share estimates. Discussion around the report was mixed but skewed positive.”