AbbVie (NYSE:ABBV) Gains Positive Opinion From EMA for GCA Treatment RINVOQ

Simply Wall St.
03-01

AbbVie (NYSE:ABBV) experienced a notable 17% rise in total shareholder returns last month, reflecting strong investor confidence potentially influenced by the European Medicines Agency's Committee for Medicinal Products for Human Use adopting a positive opinion for upadacitinib (RINVOQ®) for treating Giant Cell Arteritis. Additional positive sentiment may have stemmed from the recent FDA approval of EMBLAVEO™, marking another significant milestone for the company. Meanwhile, broader market trends showed volatility, with major indexes like the Nasdaq down 5.5% in February amid economic concerns and uncertainty over tariff policies. Yet, despite a challenging market backdrop and a mixed earnings report showing a slight net loss for the quarter, AbbVie's strategic advancements in their product portfolio appeared to bolster investor sentiment, contributing to this substantial price appreciation over the month.

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NYSE:ABBV Revenue & Expenses Breakdown as at Feb 2025

Over the past five years, AbbVie (NYSE: ABBV) has achieved a total shareholder return of 179.26%. This impressive performance included key events such as FDA approvals and significant regulatory achievements bolstering long-term investor confidence. The strategic alliance with AbCellera to enhance T-cell engager technology in oncology, announced in January 2025, highlighted AbbVie's commitment to innovation. The expansion of the product portfolio with successful trials and approvals, such as the 2022 approval of SKYRIZI for psoriatic arthritis in Canada, further reinforced the company's growth trajectory.

Recent executive leadership changes with Robert A. Michael set to take over as CEO and Chairman from July 2025 reflect a pivot towards sustaining long-term growth. The extensive share buyback activity, completing over 152 million shares since 2018, illustrated effective capital allocation strategies that might have supported the stock's performance. Additionally, AbbVie outperformed the US market and Biotech industry over the past year, demonstrating resilience amid challenges posed by earnings variability and market volatility.

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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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