American biopharmaceutical company, AbbVie (NYSE:ABBV), is leaving pharmaceutical trade groups, including Pharmaceutical Research and Manufacturers of America (PhRMA), and Biotechnology Innovation Organization and Business Roundtable, as per Reuters and the Politico reports. Though the reason is unknown, it seems that AbbVie does not see any short-term benefit from renewing its memberships with the trade groups.
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These pharmaceutical trade groups are comprised of leading American pharma companies and their CEOs and are formed to ensure public safety, free flow of information, and easy access to drugs and medications. At the same time, they also boost the research and development of new drugs by pharmaceutical and biotechnology companies.
AbbVie said it has decided not to renew any of these trade memberships after a thorough evaluation. According to a PhRMA spokesperson, “AbbVie has decided not to renew their membership with PhRMA in 2023. This does not change our focus on fighting for the solutions patients and our health care system need.”
Is AbbVie a Buy or Sell?
On TipRanks, AbbVie stock has a Moderate Buy consensus rating based on five Buys, seven Holds, and one Sell rating. The average AbbVie price forecast of $157.17 implies 3.6% downside potential to current levels. Meanwhile, ABBV stock has gained 25.1% so far this year.
Moreover, the company pays a regular quarterly common dividend of $1.48 per share, reflecting an impressive yield of 3.42%.
Also, AbbVie currently trades at a price/earnings per share (P/E) multiple of 21.98x, much lower than the sector median of 25.45x and its five-year average of 25.39x. The valuation reflects that the stock is undervalued and has the potential to grow.
