Over the past few weeks, shares of AbbVie ( NYSE:ABBV ) have declined by about 20%. This is timed to the introduction of biosimilar versions of AbbVie’s well-known medication Humira. It makes little sense that the market is suddenly selling off Abbvie stock because that was a very well-known aspect for years. After this drop in the share price, the valuation has become more appealing once more, and the yield has increased to more than 4% as well.
Humira Drug’s Patent Expired
Over the past few years, Humira (adalimumab), an immunology treatment used to treat many conditions like rheumatoid arthritis, psoriasis, Crohn’s disease, and others, has been AbbVie’s top-selling medication and, in fact, the most popular medication in the entire globe.
Due to Humira’s enormous sales and the recent loss of patent protection in Europe, it is not surprising that other pharmaceutical companies have introduced biosimilars to the market. However, this did not cause sales to stop in Europe; despite a 46% drop in revenue the year after competitors entered the market with their respective biosimilars, Humira still brought in billions of dollars for AbbVie in the EU.
Since Humira’s patent expired in the United States this year, which was long known, the majority of investors will already be aware of this.
Nevertheless, ABBV’s share price fell over the past few weeks, falling 17% from the 52-week high and more than 10% thus far in 2023. This is somewhat unexpected given that an efficient market would have previously factored the patent expiration into AbbVie’s shares, especially given that the company recently released positive guidance for its next-generation Humira replacement drugs, upa and risa, also known as Rinvoq a...
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