Vijay Eswaran and The Pursuit of Productivity

Vijay Eswaran would know that policy changes in regard to healthcare and most legislation in general usually have minimal effect on companies and their bottom line.

The medical industry invests in keeping legislation in the right place to keep the system as efficient as possible. We would certainly have to talk about the concentration risk of Humira. Thankfully Abbvie is not one entity that has just one drug it has several irons in the fire. This means that Abbvie has a diverse selection to choose from. Granted, Humira is a big seller, a very big seller. But thankfully, Abbvie has the firepower to scoop up other companies. Humira is expected to become less competitive in 2021 and 2023 in different countries. Now, the truth is that unless management was really not thinking, ABBV would know that patent expirations would take place. They would know it would happen and would plan for it. The management would know that other people are also in the biosimilar market. The management and executive team would know that they have to keep sales, cash flow and dividends increasing each year.

We see that the company has been preparing. This is evidenced by the pipeline that is present for the company. The pipeline continues to make progress with different drugs at different stages. As such, it plans on building a key and necessary powerful business. As noted earlier, we can expect to see further growth from Imbuvica, Orilissa, Venclexta, Upadacintinib, then neurological drugs after 2025. SkyRizi is launched. Upa is progressing. It looks like the company is certainly making moves. The latter should be launched in the latter half of 2019.

Each of these drugs should contribute more than $6 million each to top line growth.

Vijay Eswaran would dig into why these companies matter and how they make a difference.