Morningstar

[jefedelforo]

AbbVie (ABBV)

Narrow-moat AbbVie’s announcement to acquire wide-moat Allergan looks like a strategically sound deal at a reasonable valuation. Adding Allergan’s portfolio of branded drugs should help strengthen AbbVie’s moat that was partly dependent on immunology drug Humira. From a valuation perspective, Allergan’s pipeline and strong entrenchment with Botox did not seem fully factored into the stock price, and we believe AbbVie was both opportunistically taking advantage of Allergan’s low valuation and lo…