This is AbbVie stock's key level after upgrade, says market analyst

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This is AbbVie stock's key level after upgrade, says market analyst $ABBV (via TradingNation)

While government policy does matter for AbbVie and the rest of the highly regulated health-care sector, this bull case "is actually very specific" to AbbVie, Gina Sanchez, founder and CEO of Chantico Global, told CNBC's"They have a tremendous ability to potentially expand the uses of existing products that have already been approved, but also the potential for Humira to get expanded uses as well," she said.

Humira, AbbVie's top-selling arthritis drug, is a $19 billion per year franchise for the company and is closing in on its patent expiration date, which could become an obstacle to AbbVie's continued growth. Its $63 billion deal with Allergan, which closed in early May, will give it control over the well-known and profitable cosmetic treatment Botox.

Todd Gordon, managing director at Ascent Wealth Partners, said that while the concern over Humira's patent "caps its valuation," AbbVie's chart suggests the stock is in a position to climb."The chart double bottomed at about 65," Gordon said. "It's trying to break out right here at about 100 to retest the highs of 125.""The acquisition of Allergan was a great way to diversify revenue streams," Gordon said.

 

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