Liberty Media Corp (LMCA), Actavis Inc (ACT), AbbVie Inc (ABBV): Investing Opportunity in 3 Profit Making Companies

Product sales on the rise

AbbVie Inc (NYSE:ABBV)’s first quarter revenue was $4.33 billion, which is an increase of 4% year over year. The international sales of the company rose 8% to $2.21 billion, which was largely driven by their product Humira. Humira saw an increase in sales of 16% to $2.24 billion globally year over year. It is the most important drug for AbbVie Inc (NYSE:ABBV) in terms of revenue as it accounted for half of the company’s revenue in 2012. It expects revenue of $18 billion in the year 2013, which includes the highest contribution from Humira. The patent for the drug will expire in 2016, so the company has a long-term opportunity to gain from its best-selling drug.

The company’s revenue is also driven by one more important drug in its portfolio, which is Androgel, a drug used on men to treat low testosterone levels. AbbVie Inc (NYSE:ABBV) recently announced the sales number for the product in the first quarter of 2013, which was $240 million, a 3.4% increase year over year. The biggest rival for the product is Auxilium Pharmaceuticals’ Testim, which customers are moving to, as it is cheaper than Androgel. But, AbbVie Inc (NYSE:ABBV) is strengthening its marketing efforts to be the market leader.

The U.S. testosterone enhancement drug market was valued at $2.1 billion in 2012 and the prescriptions increased from 1 million to 7 million from the year 2000 to 2012. So, the company is expecting the drug to perform in 2013 and contribute to the estimated revenue of $18 billion discussed earlier.

Conclusion

Liberty Media Corp (NASDAQ:LMCA)’s recent acquisition of Sirius XM and Charter Communications shows the company’s strategy to grow at a good pace and gain the majority of the market share.

Excellent performance of the segment and an acquisition will add to Actavis Inc (NYSE:ACT)’ value in the market, which will result in profitable numbers.

AbbVie Inc (NYSE:ABBV)’s drugs are performing exceptionally well in the U.S. market as well as globally, which proves the company’s strong base to survive in the competitive scenario.

Therefore, I recommend a buy on all these stocks.

The article Investing Opportunity in 3 Profit Making Companies originally appeared on Fool.com and is written by Madhu Dube.

Madhu Dube has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Madhu is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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