Change the narrative: That's been a classic strategy for businesses facing stiff challenges. And it's a strategy that AbbVie (ABBV 0.10%) appears to have pulled off successfully in recent days.

During 2023 investors have primarily focused on the company's declining revenue and profits, which stem from the loss of patent exclusivity for its top-selling autoimmune-disease drug Humira. AbbVie's share price reflected the concerns.

However, AbbVie just announced two big acquisitions, spurring its stock to rebound somewhat. Is this Dividend King now a no-brainer buy?

Two deals in seven days

AbbVie's executives and business development team have been quite busy lately. On Nov. 30, AbbVie announced its plans to acquire ImmunoGen (IMGN) in an all-cash transaction valued at roughly $10.1 billion. This deal stands to become AbbVie's largest acquisition since it purchased Allergan for $63 billion in 2020. First, though, the transaction must be approved by ImmunoGen's shareholders, and clear regulatory hurdles.

Only seven days after announcing its acquisition of ImmunoGen, AbbVie revealed plans to also acquire Cerevel Therapeutics (CERE). The big drugmaker again offered an all-cash buyout, this time for a total value of around $8.7 billion. This transaction also must first be approved by Cerevel shareholders and regulators.

As of Sept. 30, AbbVie reported cash, cash equivalents, and short-term investments of nearly $13.3 billion, so buying ImmunoGen and Cerevel will take more cash than the company has. AbbVie doesn't plan on using all of its cash, though. It intends to partially finance both deals by taking on additional debt.

How acquiring ImmunoGen and Cerevel will help AbbVie

Acquiring ImmunoGen should make a quicker splash for AbbVie. The biotech already markets Elahere, the first antibody-drug conjugate (ADC) approved for treating platinum-resistant ovarian cancer. Sales of the therapy totaled over $212 million in the first nine months of 2023 and are expected to continue growing steadily in its initial indication. AbbVie thinks that Elahere's sales should really take off in 2030 and afterward if it's approved for larger segments of the ovarian cancer market.

In addition to Elahere, ImmunoGen will also bring a strong pipeline of clinical-stage ADC programs to the table. The main one to watch is pivekimab sunirine, which is in a pivotal phase 2 study in treating blastic plasmacytoid dendritic cell neoplasm (BPDCN), a rare and aggressive type of blood cancer. Top-line results from this study are expected next year.

Cerevel doesn't have an approved product yet. Its lead pipeline candidate, tavapadon, is currently being evaluated in a phase 3 study targeting Parkinson's disease. Results from this study should be announced in 2024.

However, Cerevel's crown jewel could be emraclidine. The experimental therapy is in phase 2 testing as a treatment for schizophrenia and in phase 1 for treating Alzheimer's disease psychosis. AbbVie believes that emraclidine "has the potential to transform [the] schizophrenia treatment landscape."

Is this Dividend King a no-brainer buy?

I don't think the ImmunoGen and Cerevel acquisitions are obvious reasons to buy AbbVie stock right now. The company doesn't expect the ImmunoGen transaction to boost its earnings until 2027, and Cerevel won't be accretive to earnings until 2030.

That said, I like both deals. ImmunoGen will put AbbVie on the center stage with ADCs, one of the most promising arenas of cancer-drug development. Cerevel is a great fit for the company's existing neuroscience portfolio and pipeline. While AbbVie will take on debt to fund the transactions, its credit rating shouldn't be impacted at all.

I do believe that AbbVie is indeed an excellent stock to buy -- but not because of these acquisitions, as promising as they seem. I think AbbVie deserves to trade at a higher valuation than its current forward earnings multiple of 13.2. Sure, the company faces temporary headwinds with Humira. However, AbbVie should quickly return to strong growth by 2025 thanks to rising stars such as Rinvoq, Skyrizi, and Vraylar.

We can't overlook its dividend, either. As mentioned earlier, AbbVie is a Dividend King; it's had 52 consecutive dividend increases, and I fully expect it to extend its streak. And with a current yield of nearly 4.2%, the stock doesn't have to rise very much for investors to enjoy exceptional total returns.

An attractive valuation, a phenomenal dividend, and a clear growth path that's likely to be bolstered by two smart acquisitions: I think those are prime ingredients for a no-brainer investment.