“I have exercised the Demons… this house is clear” - AbbVie’s lawyers, probably… 

AbbVie just pulled off the impossible. They’ve clinched four extra years on their lease without paying more rent. More specifically, the company announced it settled with every generic drugmaker brave enough to file for knockoff versions of Rinvoq (its blockbuster immunology drug) effectively slamming the door shut on competition until April 2037. 

(Source: Giphy) 

Translation: That’s five more years of exclusivity than Wall Street was expecting, and analysts are already doing the math like it’s Christmas morning. Wells Fargo says the extension could tack on $11–24 per share in DCF value.

(Source: Yahoo Finance) 

Now if you’ve never heard of Rinvoq… well, then you’re one of the lucky ones. AbbVie’s cash cow drug treats everything from rheumatoid arthritis to ulcerative colitis. It’s been picking up the Humira torch ever since biosimilars started carving up AbbVie’s crown jewel in 2023. And it’s not alone…Rinvoq has Skyrizi as its tag-team partner, and together the duo is projected to pump out $31B in sales by 2027. AbbVie even bumped that forecast earlier this year by $4B as doctors are stepping over themselves to write scripts for the duo. 

Additionally, Rinvoq is also bulking up with new indications. The drug just delivered positive Phase 3 results for alopecia areata (yes, hair loss), adding to its roster of autoimmune targets. AbbVie is already eyeing vitiligo, hidradenitis suppurativa, and lupus. Whereas, analysts think these could tack on another $2B in peak sales… and now, with the patent shield extended, that upside just got girthier and juicier. 

(Source: Giphy) 

Meaning, investors loved it as much as Taylor Frankie Paul loves drama (kudos to my wife for making me watch that garbage). Shares popped nearly 4% on the news yesterday, presumably because pharma isn’t much about curing diseases… but curing cash flow problems. And AbbVie just bought itself a four-year extension on one of its most important revenue streams. 

So with that, what does it mean for investors like you and I? Simple: AbbVie is doing exactly what Big Pharma does best. They are litigating their way to growth. Locking Rinvoq exclusivity until 2037 means more years of monopoly pricing, more room to milk every new indication, and more time to fend off Humira’s ghost.

(Source: Giphy) 

And while biotech startups pray their Phase 2 trials don’t implode, AbbVie just guaranteed itself another decade of printing immunology money. Of course, do what you will with that information… and place your bets accordingly. Until next time, friends… 

At the time of publishing, Stocks.News does not hold positions in companies mentioned in the article.