Three Things That Will Move AbbVie Inc (ABBV) Stock

Unfortunately, AbbVie will be looking up to both companies by the time it gets approved. A few things could move it into second place. The breakthrough designation obviously helps. So, too, does AbbVie Inc (NYSE:ABBV)’s ability to combine its own proprietary drugs into one therapy. That may help it leapfrog Johnson & Johnson (NYSE:JNJ), which is partnering with other companies to get combinational therapies rolling. Gilead Sciences, Inc. (NASDAQ:GILD) will still be a tough (probably impossible) egg to crack for AbbVie.

3. Humira biosimilars
What good is all the fear about generic versions, or biosimilars, of Humira if we never bring them out of the shadows? Who are these scary competitors? Four partnerships with programs under way stand out:

1. AET BioTech and BioXpress
2. Amgen, Inc. (NASDAQ:AMGN)
3. Boehringer Ingelheim
4. Fujifilm Kyowa Kirin Biologics

Efforts from Boehringer Ingelheim and Amgen, Inc. (NASDAQ:AMGN) would be the ones to watch. Amgen, Inc. (NASDAQ:AMGN) in particular is looking to biosimilars to provide a multibillion-dollar boost to its top line by the end of the decade. The biotech leader will launch six generic biologics by 2017, including one for the best-selling drug in the world. Not to discredit smaller companies with exceptional capabilities in biomanufacturing — they tend to get overlooked as private firms — but Amgen has a much broader reach financially and more experience with regulatory guidelines.

Foolish bottom line
All in all, I am generally optimistic about AbbVie Inc (NYSE:ABBV)’s future. It has a respectable pipeline and a major focus on biologics, which comprise about 30% of its pipeline. However, I can also see pressure mounting on AbbVie stock as Humira’s expiration date nears and late-stage trials reach the 11th hour. Investors should also consider how difficult it will be to replace $10 billion in revenue. It could prove impossible, but other big pharma companies have dealt with falling revenue and still managed to send shares higher.

The article 3 Things That Will Move AbbVie Stock originally appeared on Fool.com and is written by Maxx Chatsko.

Fool contributor Maxx Chatsko has no position in any stocks mentioned. Check out his personal portfolio, his CAPS page, or follow him on Twitter @BlacknGoldFool to keep up with his writing on energy, bioprocessing, and biotechnology.The Motley Fool recommends Gilead Sciences and Johnson & Johnson. The Motley Fool owns shares of Johnson & Johnson.

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