AbbVie SWOT and PESTLE Analysis

Strength

1. Strong manufacturing capabilities with state-of-art facilities: AbbVie has 10 state-of-the-art manufacturing facilities throughout Europe and North America. They also provide various contract production facilities throughout the globe. Their manufacturing capabilities include Biology, Potent drugs, HM Extrusion, Prefilling of syringes, Fermentation, etc. as well as custom manufacturing services. Moreover, AbbVie has a highly experienced and skilled workforce who has undergone various types of trainings which has increased their motivation and focus to excel at their work. With the opening of its first phase of global manufacturing facility at Singapore, AbbVie wishes to expand its horizon of operations for biologics and small molecule manufacturing – also known as the API facility. The company’s oncology and women’s health areas will be greatly benefitted through this modern facility. With a skilled pool of talent, AbbVie wishes to leverage its workforce’s technical expertise to provide value to their customers and stakeholders worldwide. Abbvie has partnerships with biotech, universities, nonprofits, and government organizations and it uses its 22 State-of-the-art R&D and manufacturing centers to help further the development of science. 2. Diversified products and innovation: Ever since its inception, AbbVie has been aiming at developing a lot of diverse products by leveraging its skilled and experienced workforce through innovation. AbbVie makes sure that its medicines perform well not only in their laboratories but also in every sphere of one’s life so that patients are benefitted overall. The company wishes to eliminate various chronic and hard to cure diseases like Alzheimer’s disease, various types of cancer and other immune-mediated conditions. Humira, which is Abbvie’s most important product, is difficult to develop, as it is a biologic. This means that it is not made of synthetic chemicals, but rather from living cells. Moreover, biosimilars, which are copies of biologic drugs, are also harder to recreate than normal generic drugs. These factors along with an aggressive patent strategy have made it possible for AbbVie to fend of its competitors. AbbVie is also focusing on areas to produce path-breaking discoveries in medicine which are used in the treatments of immunology, oncology, neuroscience, virology and general medicine. They have also a number of products in their pipeline like investigational drugs which are currently under study and not yet approved by the FDA. Their approved drugs are also under study to be used in newer applications for which they have yet not been approved. The remaining section under “Strength” is available only in the 'Complete Report' on purchase.

Weakness

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Opportunity

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Threat

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Political

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Economic

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Social

1. Patient criticism for high drug prices: Humira, a wonder drug for people suffering from rheumatoid arthritis and colitis psoriasis has now become one of the top-selling prescription drugs globally in spite of its high pricing. This anti-inflammatory drug is dispensed using an injectable pen and has seen drastic price hikes since 2012 according to SSR Health. From about $19,000 a year per patient after rebates, it had risen to almost $38,000 in 2018 which further scaled 7.4% effective Jan 1st, 2020 over expenditure in previous fiscal. Abbvie has faced a lot of backlashes related to this as patients are calling out the company on not only being unfair but also of being morally wrong. This is forcing patients into skipping doses and rationing on other expenses. Though AbbVie argues that it needs to recover its high R&D costs, this puts the company is a negative social light in the minds of consumers. The remaining section under “Social” is available only in the 'Complete Report' on purchase.

Technological

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Legal

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Environmental

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