AbbVie (ABBV) Signs Three-Year Deal with Trump Administration to Invest $100 Billion in R&D
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Drug Price Reduction: AbbVie has reached an agreement with the Trump administration to lower drug prices over the next three years, aiming to alleviate the financial burden on U.S. consumers for medications.
- R&D Investment Commitment: The company will invest $100 billion in U.S. research and development and capital investments over the next decade, which is expected to drive long-term growth in innovative drug development.
- Direct-to-Patient Services: AbbVie will expand its direct-to-patient offerings through the government-run website TrumpRx, covering widely used medications including Humira, thereby enhancing patient accessibility.
- Policy Support and Market Impact: This agreement not only addresses all four of the Trump administration's drug pricing priorities but also strengthens AbbVie's strategic position in the competitive pharmaceutical market by providing tariff exemptions and future price mandates.
Analyst Views on ABBV
Wall Street analysts forecast ABBV stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ABBV is 248.67 USD with a low forecast of 204.00 USD and a high forecast of 289.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
24 Analyst Rating
15 Buy
9 Hold
0 Sell
Moderate Buy
Current: 220.080
Low
204.00
Averages
248.67
High
289.00
Current: 220.080
Low
204.00
Averages
248.67
High
289.00
About ABBV
AbbVie Inc. is a global, diversified research-based biopharmaceutical company. It is engaged in research and development, manufacturing, commercialization and sale of medicines and therapies. Its product portfolio includes Immunology, Oncology, Aesthetics, Neuroscience, Eye Care and Other Key Products. Immunology products include rheumatology, dermatology and gastroenterology. Oncology products include Imbruvica, Venclexta/Venclyxto, Elahere and Epkinly. Aesthetics portfolio consists of facial injectables, plastics and regenerative medicine, body contouring, and skincare products. Its Neuroscience products include Botox Therapeutic, Vraylar, Duopa and Duodopa, Ubrelvy, and Qulipta. Eye Care products include Ozurdex, Lumigan/Ganfort, Alphagan/Combigan, Restasis, and other eye care. Other key products include Mavyret/Maviret, Creon, and Linzess/Constella. Its investigational candidate, bretisilocin, is for the treatment of patients with moderate-to-severe major depressive disorder (MDD).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
