AbbVie Settles Rinvoq Patent Dispute: What It Means for the Stock

Core Insights - AbbVie shares rose over 4% to a record high following the settlement of patent litigation with generic manufacturers for Rinvoq, extending exclusivity until April 2037 [1][8] - Rinvoq sales increased by 48% year over year to nearly $3.75 billion in the first half of 2025, representing 13% of AbbVie's total revenues [2][8] - AbbVie anticipates that new indications for Rinvoq could add approximately $2 billion to its peak-year sales [3][8] Company Performance - The strong sales of Rinvoq and AbbVie's other drug Skyrizi have helped mitigate the impact of Humira's erosion, positioning them as key growth drivers [4] - AbbVie expects combined sales of Rinvoq and Skyrizi to exceed $25 billion in 2025, with over $8 billion expected from Rinvoq alone [4] Competitive Landscape - The immunology market is highly competitive, with Johnson & Johnson focusing on Tremfya after Stelara lost U.S. patent exclusivity [5] - Eli Lilly is expanding its immunology presence with the FDA approval of Omvoh for ulcerative colitis and Crohn's disease [6] Valuation and Estimates - AbbVie shares are trading at a premium, with a price/earnings (P/E) ratio of 16.14 compared to the industry average of 14.75 [10] - EPS estimates for 2025 and 2026 have seen slight increases in the past 30 days [12]