Core Viewpoint - Cerevel Therapeutics Holdings, Inc. is facing a class action lawsuit due to allegations of misleading statements regarding its stock offering and the subsequent acquisition by AbbVie Inc. [1][2] Group 1: Allegations and Impact - The lawsuit claims that Cerevel's October 16, 2023 secondary stock offering omitted crucial information about AbbVie's interest in acquiring Cerevel at a significantly higher price than the offering price of $22.81 per share, which led to an artificially deflated stock price until the merger announcement [2] - Bain Capital, Cerevel's controlling shareholder, allegedly purchased shares during the October Offering while possessing nonpublic information about AbbVie's acquisition interest, resulting in a profit exceeding $120 million when AbbVie agreed to acquire Cerevel for $45 per share on December 6, 2023 [2] - Cerevel's January 18, 2024 Proxy statement is accused of misleading investors regarding the nature and timing of AbbVie's interest in the company [2] Group 2: Class Action Details - The class period for the lawsuit includes shareholders who sold or held shares from October 11, 2023, to August 1, 2024, and those who sold shares contemporaneously with Bain Capital's purchase on October 16, 2023 [1][2] - The deadline for shareholders to register for the class action is June 3, 2025, and there is no cost or obligation to participate [3] - Registered shareholders will receive updates through a portfolio monitoring software throughout the case lifecycle [3] Group 3: Legal Representation - The Gross Law Firm, a nationally recognized class action law firm, is representing the shareholders and aims to protect investors from deceit and illegal business practices [4] - The firm emphasizes the importance of responsible business practices and seeks recovery for investors affected by misleading statements or omissions that led to stock price inflation [4]

Core Viewpoint - Pharmaceutical stocks are generally considered safe investments during market volatility, as their underlying businesses remain stable regardless of economic fluctuations [1] Group 1: Market Performance - The three largest pharmaceutical companies by market capitalization—AbbVie, Eli Lilly, and Johnson & Johnson—have shown solid stock gains this year, even as major market indexes have declined [2] Group 2: Tariff Concerns - Johnson & Johnson has included approximately $400 million in its 2025 guidance to account for potential tariff impacts, specifically on its medtech business [4] - President Trump announced plans to impose a "major tariff" on drug imports, indicating a forthcoming "tariff wall" that could disrupt supply chains and lead to shortages [4][5] - AbbVie’s CEO expressed skepticism about the ability to pass increased costs from tariffs onto customers due to existing contractual penalties and government regulations [6] Group 3: International Reference Pricing - The Trump administration is considering international reference pricing for Medicare and Medicaid drugs, which could significantly impact revenue for AbbVie, Lilly, and Johnson & Johnson [8][9] - The pharmaceutical industry organization PhRMA warns that international reference pricing could lead to delays in access to medications, fewer new therapies, and diminished U.S. leadership in biopharmaceutical innovation [9] - Each of the three companies has high-cost medications under Medicare Part D, making them particularly vulnerable to revenue reductions if international reference pricing is implemented [9] Group 4: Future Outlook - Despite concerns over tariffs and international pricing strategies, there is no immediate expectation of a stock crash for AbbVie, Lilly, and Johnson & Johnson [10] - The Trump administration has indicated that drugmakers will have time to adjust their manufacturing processes before tariffs take effect, and the companies are already investing in U.S. facilities [11] - Previous attempts to implement international reference pricing were blocked by legal challenges, suggesting that future efforts may also face significant opposition [12]

Core Insights - The current global trade environment is marked by rising tariffs and tensions, prompting investors to seek stability in defensive sectors that are less impacted by economic fluctuations [1][2] - Large-cap biotech companies with a strong domestic focus, such as Gilead Sciences, Amgen, and AbbVie, are gaining attention as potential defensive investments due to their reliance on the U.S. market [2][3] Biotech Companies Overview - Gilead Sciences derives approximately 70.0% of its Q1 2025 product revenue from the U.S., Amgen generates about 74.7% of its Q4 2024 product sales domestically, and AbbVie obtains roughly 74.8% of its Q1 2025 net revenue from the United States [3][4] - The significant concentration of domestic sales provides a buffer against retaliatory tariffs and economic downturns, as demand for essential medicines tends to be inelastic [4][5] Financial Performance and Stability - Gilead Sciences has a market capitalization of around $132.66 billion, with a year-to-date stock gain of 15.3% and a low Beta of approximately 0.32, indicating defensive characteristics [11][13] - Amgen, valued at approximately $156.41 billion, reported a positive year-to-date performance of +11.6% and a Beta of 0.59, suggesting lower volatility [15][16] - AbbVie has a market capitalization of roughly $345.22 billion, achieving a 9.8% operational revenue increase in Q1 2025, with a forward P/E ratio of about 15.85 [18][19] Policy Environment - Recent U.S. government policy shifts are creating a supportive environment for domestic biotech companies, focusing on onshoring and reshoring manufacturing to enhance supply chain resilience [6][8] - Strategies include financial incentives, direct government investments, and prioritizing domestically produced medicines through 'Buy American' initiatives [7][8] Investment Appeal - The combination of strong cash flows, healthy dividends, and low Beta scores makes U.S.-focused biotech companies appealing during uncertain times [21][20] - Analysts have a Moderate Buy consensus on Gilead and AbbVie, while Amgen is rated as a Hold, reflecting confidence in their defensive qualities amidst market volatility [11][19][15]

NEW YORK, May 2, 2025 /PRNewswire/ -- Levi & Korsinsky, LLP notifies investors in Cerevel Therapeutics Holdings, Inc. ("Cerevel Therapeutics Holdings, Inc." or the "Company") (NYSE: ABBV) of a class action securities lawsuit.CLASS DEFINITION: The lawsuit seeks to recover losses on behalf of Cerevel Therapeutics Holdings, Inc. investors who were adversely affected by alleged securities fraud. This lawsuit is on behalf of all persons or entities that: (a) sold or otherwise disposed of the publicly-traded comm ...

BOTOX® Cosmetic Will Provide 250 Entrepreneurs with Access to New Resources and Opportunities and Will Award 20 Grants Worth $20,000 Each to Support Business Goals. By 2030, BOTOX® Cosmetic Pledges to Empower 50,000 Entrepreneurs, Helping to Close the Confidence Gap. IRVINE, Calif., May 1, 2025 /PRNewswire/ -- Allergan Aesthetics, an AbbVie company (NYSE: ABBV), today announced BOTOX® Cosmetic's continued commitment to closing the Confidence Gap with the introduction of The Confidence Project: Empowering W ...

NEW YORK, May 01, 2025 (GLOBE NEWSWIRE) -- The Gross Law Firm issues the following notice to shareholders of Cerevel Therapeutics Holdings, Inc. (NYSE: ABBV). Shareholders who purchased shares of ABBV during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery. CONTACT US HERE: https://securitiesclasslaw.com/securities/cerevel-therapeutics-holdings-inc-loss-submission-form/?id=146202 ...

NEW YORK, May 1, 2025 /PRNewswire/ -- The Gross Law Firm issues the following notice to shareholders of Cerevel Therapeutics Holdings, Inc. (NYSE: ABBV).Shareholders who purchased shares of ABBV during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery.CONTACT US HERE:https://securitiesclasslaw.com/securities/cerevel-therapeutics-holdings-inc-loss-submission-form/?id=146171&from=4  ...

Analyst's Disclosure: I/we have a beneficial long position in the shares of ABBV, JNJ, ROP, HRL, O, LOW, NEE, PEP, TROW, WST either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation ...

NEW YORK, April 29, 2025 (GLOBE NEWSWIRE) -- Levi & Korsinsky, LLP notifies investors in Cerevel Therapeutics Holdings, Inc. ("Cerevel Therapeutics Holdings, Inc." or the "Company") (NYSE: ABBV) of a class action securities lawsuit. CLASS DEFINITION: The lawsuit seeks to recover losses on behalf of Cerevel Therapeutics Holdings, Inc. investors who were adversely affected by alleged securities fraud. This lawsuit is on behalf of all persons or entities that: (a) sold or otherwise disposed of the publicly-tra ...

AbbVie Inc. ABBV is trading higher Tuesday. The stock has been in an uptrend. In the past week, it has gained more than 12%.But now it is overbought. This could draw sellers into the market and they could pressure AbbVie lower. Benzinga’s team of technical analysts has made it the Stock of the Day.Overbought refers to the momentum of a stock. Most of the time it will stay in its normal or average trading range. If it is aggressively bought and gets above this range, traders will say that it is overbought.Th ...