Canadian Approval of SKYRIZI in Ulcerative Colitis Might Change the Case for Investing in AbbVie (ABBV)

• In the past week, AbbVie announced that Canada's Drug Agency recommended reimbursement for SKYRIZI in ulcerative colitis and concluded pricing negotiations, expanding access for adults with moderate to severe disease who have had limited treatment success.
• This update underscores AbbVie's ongoing progress in advancing immunology treatments and increasing its reach in key international markets.
• We'll now examine how expanded public access for SKYRIZI in Canada could affect AbbVie's investment narrative and future outlook.

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AbbVie Investment Narrative Recap

To believe in AbbVie as a shareholder, you need confidence in its ability to deliver sustained innovation in immunology and neuroscience, offsetting ongoing pressures from patent expirations on prior blockbusters. The positive recommendation for SKYRIZI reimbursement in Canada enhances access for ulcerative colitis patients, further supporting its immunology franchise, but the most important near-term catalyst remains continued expansion and uptake in broader international markets. The biggest risk is persistent pressure from global drug pricing reforms, yet this development alone does not materially alter the risk profile right now.

Among recent announcements, the FDA approval for EPKINLY in relapsed or refractory follicular lymphoma stands out, as it showcases AbbVie’s ongoing push to diversify with new oncology therapies. While unrelated to SKYRIZI’s expansion in Canada, EPKINLY’s regulatory progress reflects the company’s efforts to reduce reliance on its immunology portfolio amid broader pricing and portfolio concentration risks.

However, against this progress, investors should be aware of ongoing international pricing pressures and...

Read the full narrative on AbbVie (it's free!)

AbbVie's narrative projects $73.0 billion revenue and $20.8 billion earnings by 2028. This requires 7.7% yearly revenue growth and a $17.1 billion earnings increase from $3.7 billion today.

Uncover how AbbVie's forecasts yield a $243.55 fair value, a 7% upside to its current price.

Exploring Other Perspectives

Four Simply Wall St Community fair value estimates for AbbVie range from US$232 to US$428 per share. While some see substantial upside, the concentrated product portfolio and evolving competitive landscape suggest performance could diverge from these varied expectations, explore all sides.

Explore 4 other fair value estimates on AbbVie - why the stock might be worth just $232.00!

Build Your Own AbbVie Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your AbbVie research is our analysis highlighting 2 key rewards and 5 important warning signs that could impact your investment decision.
• Our free AbbVie research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate AbbVie's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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