We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can AbbVie (ABBV) Stock Keep the Momentum Alive in 2018?
Read MoreHide Full Article
AbbVie Inc. (ABBV - Free Report) shares are expected to be northbound in 2018, carrying on the momentum achieved last year. The stock was up 54.4% in 2017, comparing favorably with a gain of 16.3% recorded by the industry.
Last year’s share price surge was supported by a series of positive news. AbbVie met primary endpoints in several pivotal studies – the key phase III MURANO study of Venclexta plus Roche’s (RHHBY - Free Report) Rituxan in relapse/refractory chronic lymphocytic leukemia; three phase III studies evaluating oral JAK-1 selective inhibitor, upadacitinib for rheumatoid arthritis and also a phase IIb study in atopic dermatitis; and four pivotal head-to-head phase III studies evaluating risankizumab versus Johnson & Johnson’s (JNJ - Free Report) Stelara and Humira, for moderate-to-severe chronic plaque psoriasis.
Meanwhile, AbbVie gained regulatory approvals in the United States, Europe, and Japan for its competitive HCV medicine Mavyret and FDA approval for the sixth indication for cancer drug Imbruvica in 2018.
AbbVie also settled its patent disputes with Amgen (AMGN - Free Report) , which delayed the launch of the latter’s biosimilar version of AbbVie’s blockbuster arthritis drug, Humira in the United States to 2023 and in most countries in the EU to October 2018.
This agreement has removed a major overhang on AbbVie’s shares. Moreover, the agreement gave AbbVie ample time to focus on developing its pipeline and launching new products that will help make up for the loss of revenues once biosimilar Humira enters the market.
Factors Likely to Support the Rally in 2018
With several pivotal data readouts and regulatory milestones expected in 2018, the bullish run of the stock should continue in 2018. An important catalyst for the stock will be data from a pivotal phase III (TRINITY) study on Rova-T in third-line or later small cell lung cancer (SCLC) in the first half of the year. An important regulatory milestone will be the FDA decision on elagolixin the second quarter. Please note that the new drug application (NDA) for elagolix for endometriosis was granted priority review by the FDA in October last year.
Importantly Humira has been generating strong sales. Despite new competition, AbbVie raised its long-term target for Humira sales in October based on strong demand trends for the drug. Imbruvica, AbbVie’s second most important drug, is also doing consistently well and has multibillion dollar potential. AbbVie is exploring the possibility of label expansion into solid tumors and autoimmune diseases. All these factors bode well for the stock.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Can AbbVie (ABBV) Stock Keep the Momentum Alive in 2018?
AbbVie Inc. (ABBV - Free Report) shares are expected to be northbound in 2018, carrying on the momentum achieved last year. The stock was up 54.4% in 2017, comparing favorably with a gain of 16.3% recorded by the industry.
AbbVie carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Last year’s share price surge was supported by a series of positive news. AbbVie met primary endpoints in several pivotal studies – the key phase III MURANO study of Venclexta plus Roche’s (RHHBY - Free Report) Rituxan in relapse/refractory chronic lymphocytic leukemia; three phase III studies evaluating oral JAK-1 selective inhibitor, upadacitinib for rheumatoid arthritis and also a phase IIb study in atopic dermatitis; and four pivotal head-to-head phase III studies evaluating risankizumab versus Johnson & Johnson’s (JNJ - Free Report) Stelara and Humira, for moderate-to-severe chronic plaque psoriasis.
Meanwhile, AbbVie gained regulatory approvals in the United States, Europe, and Japan for its competitive HCV medicine Mavyret and FDA approval for the sixth indication for cancer drug Imbruvica in 2018.
AbbVie also settled its patent disputes with Amgen (AMGN - Free Report) , which delayed the launch of the latter’s biosimilar version of AbbVie’s blockbuster arthritis drug, Humira in the United States to 2023 and in most countries in the EU to October 2018.
This agreement has removed a major overhang on AbbVie’s shares. Moreover, the agreement gave AbbVie ample time to focus on developing its pipeline and launching new products that will help make up for the loss of revenues once biosimilar Humira enters the market.
Factors Likely to Support the Rally in 2018
With several pivotal data readouts and regulatory milestones expected in 2018, the bullish run of the stock should continue in 2018. An important catalyst for the stock will be data from a pivotal phase III (TRINITY) study on Rova-T in third-line or later small cell lung cancer (SCLC) in the first half of the year. An important regulatory milestone will be the FDA decision on elagolixin the second quarter. Please note that the new drug application (NDA) for elagolix for endometriosis was granted priority review by the FDA in October last year.
Importantly Humira has been generating strong sales. Despite new competition, AbbVie raised its long-term target for Humira sales in October based on strong demand trends for the drug. Imbruvica, AbbVie’s second most important drug, is also doing consistently well and has multibillion dollar potential. AbbVie is exploring the possibility of label expansion into solid tumors and autoimmune diseases. All these factors bode well for the stock.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>