AbbVie Permits US Sale of Sandoz's Humira Biosimilar
- By Alberto Abaterusso
AbbVie Inc. (ABBV) announced on Oct. 11 that it has reached an agreement with Sandoz, a unit of Novartis AG (NVS), for the settlement of the patent infringement litigation connected with its top-selling drug, Humira.
The licensing agreement is non-exclusive and allows Sandoz to sell its Humira biosimilar in the U.S. starting on Sept. 30, 2023. AbbVie will receive undisclosed royalties on net sales from Sandoz.
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Sandoz's U.S. license will not be accelerated by the entry of Amgen Inc. (AMGN), Samsung Bioepis (BIIB) and Mylan NV (MYL). The global resolution with Samsung Bioepis will be effective in the U.S. on Jan. 31, 2023 and the agreement with Mylan goes into effect on July 31, 2023. The global resolution with Amgen will be effective in the U.S. starting Jan. 31, 2023.
Humira is the trade name under which AbbVie produces and sells Adalimumab, an active ingredient used for treating rheumatoid arthritis, psoriasis, ankylosing spondylitis, Crohn's disease, ulcerative colitis and several other conditions.
Humira is the flagship product in the company's portfolio. Its sales contribute approximately 60% to AbbVie's revenue.
On Thursday, AbbVie fell 2.56% to $90.7 per share. The market capitalization is approximately $140.95 billion.
The stock is trading below the 200-, 100- and 50- day simple moving average lines and is about 16.4% below the midpoint of the 52-week range of $85.24 to $125.86 per share. For the 52 weeks through Oct. 11, the stock price is flat.
AbbVie has a price-sales ratio of 4.67 versus an industry median of 3.10 and a price-earnings ratio of 22.45 versus an industry of 23.77.
The stock has a forward dividend of $3.84, granting a 4.23% yield according to the closing price on Oct. 11.
The stock has a 2.5 out of 5 recommendation rating and an average target price of $109.83 per share.
The forward price-earnings ratio is 10.07. Analysts are predicting earnings of $7.87 per share for full fiscal 2018 and $8.89 per share for full fiscal 2019.
Disclosure: I have no positions in any securities mentioned in this article.
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This article first appeared on GuruFocus.
Warning! GuruFocus has detected 3 Warning Sign with ABBV. Click here to check it out.
The intrinsic value of ABBV
