AbbVie Shares Jump as Rinvoq Generic Settlement a ‘Big Win’ (1)

(Updates with shares, adds Wells Fargo note)

AbbVie shares climb as much as 5.7% in premarket trading after the drugmaker said it settled litigations with generic manufacturers of Rinvoq and expects no generic launch in the US until April 2037.

• Wells Fargo analyst Mohit Bansal views the update as a “big win” for AbbVie “given that consensus was modeling patent expiry in 2032 and modeled terminal growth accordingly”
  • Sees $11 to $24 per share upside to discounted cash flow based on the settlement update
  • Sees AbbVie’s other drug, Skyrizi, getting a similar settlement and “we would not be surprised if ...