AbbVie Drops After FDA Seeks New Rinvoq Warning; Incyte Gains

(Updates with share moves, details throughout.)

AbbVie sinks 5% to a session low after the U.S. Food and Drug Administration said the drugmaker’s arthritis medicine, Rinvoq, and Pfizer’s Xeljanz, will need a new boxed warning, the agency’s most prominent caution, pointing to an increased risk of death. Incyte climbs as much as 3.7%, the biggest jump in nearly six months, after the FDA said its top-selling drug, Jakafi, wouldn’t need a similar warning.

• The agency concluded there is an increased risk of heart attack or stroke, cancer, blood clots, and death with the arthritis and ulcerative colitis medicines Xeljanz and ...