AbbVie Stock Touches Record High After Company Dismisses Generic Competition For Rinvoq Till 2037: Wells Fargo Terms It A ‘Big Win’

Shares of AbbVie Inc. (ABBV) hit a fresh record high on Thursday before paring back some of the gains, after the company said it does not expect any generic versions of its Rinvoq in the U.S. before April 2037.

The company stated in a filing that it has settled litigation with all generic manufacturers that filed abbreviated new drug applications with the U.S. Food and Drug Administration for generic versions of Rinvoq.

In the second quarter, Rinvoq was the second most revenue-generating drug from AbbVie’s portfolio after Skyrizi. Global Rinvoq net revenues were $2.028 billion in the three months, representing a year-over-year increase of approximately 42% on a reported basis. Rinvoq is used to treat adults with moderate to severe rheumatoid arthritis, active psoriatic arthritis, moderate to severe ulcerative colitis, and Crohn's disease, among other conditions, in the U.S. It is also approved for the treatment of children 12 years of age and older with moderate to severe eczema.

Shares of ABBV hit a new record high of over $221 over the news, before paring back some gains. The stock traded 4% higher at the time of writing.

On Stocktwits, retail sentiment around ABBV jumped from ‘bullish’ to ‘extremely bullish’ territory over the past 24 hours, while message volume remained at ‘high’ levels.

A Stocktwits user termed the settlement “pretty big news.”

Another user expressed optimism that the stock could reach as high as $250.

Wells Fargo believes AbbVie's U.S. intellectual property settlement with generic players for Rinvoq gives the company a "really long runway" for the product. The news is a "big win" given that consensus expectations called for a patent expiration in 2032, the analyst told investors in a research note. Wells Fargo keeps an ‘Overweight’ rating on AbbVie with a $240 price target, representing an upside of over 13% from Wednesday’s closing price.

ABBV stock is up by 24% this year and by about 14% over the past 12 months.

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