European approval of biosimilars threatens Abbvie's biologics....at least in the minds of people who sold the stock in response to the European approval. That's the reason why HSP went up so drastically Friday...They are into biosimilars big time. Shouldn't be any short term effect on Abbvie. The sell off was a knee-jerk reaction to the biosimilar approval. Abbvie should recover...how much, don't know.
markets are up fr tuesday, abbv practically flat, down 2 days in a row, has been in a trading range for some time since it got sold-off around $47/$48 level...i bought some on monday, should have sold it on tuesday or wed morning and buy it back again
Now below $42. I'm not buying at this level, fear that Abbie will drop to $40 and perhaps lower, then we will have a new lower trading range. Of course if Abbie comes out with a new blockbuster med, then the sky is the limit. Won't be that there 4-pill treatment, no ever. Folks will just wait for Gilead's 1-pil-and-you're-done treatment.
This stock seems to be 1.5 times more volatile than the stock market on downswings. In subtraction, two execs have left the company, and Abbie aint a year old! Upon further discount, any positive news on the Gilead front translates into Abbie's stock taking a hit---the one Gilead pill vs. four Abbie pills effect. Even if Abbie comes first to market, one pill is easier to swallow than four, so I doubt Abbie stock will really benefit from Abbie being the first treatment on the market, for folks will prefer and wait, I dare post, for Gilead's product because both treatments will be availble within a short time of the first one to market. For further diminution, Abbot loaded up Abbie with debt in that there splitsville. I'm no prophet but I anyroutes predict that Abbie sees $40/share before climbing back to $47 and some change/share back in them good old days in April this year.