AbbVie and Other Drugmakers Reach Price Reduction Agreements with U.S. Government
Written by Emily J. Thompson, Senior Investment Analyst
Source: Newsfilter
- Price Reduction Agreements: AbbVie, Bristol Myers Squibb, Gilead, and other drugmakers are expected to announce agreements with the U.S. government on Friday to lower certain prescription drug prices, aiming to address the high drug costs in the U.S., which could impact these companies' revenue structures.
- Market Response Stabilized: Although the U.S. government may implement stricter drug price controls, the agreements reached so far have alleviated investor concerns, demonstrating the market's adaptability to drug pricing reforms.
- Impact on Medicaid Spending: Analysts note that while Medicaid accounts for only about 10% of U.S. drug spending, its price discounts exceed 80% in some cases, which may influence drugmakers' pricing strategies and profit margins.
- Industry Dynamics Shift: As more drug companies negotiate with the government, price competition within the industry is expected to intensify, potentially leading to an overall decline in profit levels in the drug market, prompting companies to reassess their market positioning and strategic direction.
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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 253.26 USD with a low forecast of 218.00 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.
22 Analyst Rating
15 Buy
7 Hold
0 Sell
Moderate Buy
Current: 218.670
Low
218.00
Averages
253.26
High
289.00
Current: 218.670
Low
218.00
Averages
253.26
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.
AbbVie Achieves Remarkable Growth in 2025
- Stock Performance: In 2025, AbbVie’s stock surged nearly 29%, significantly outperforming the S&P 500's 16% gain, reflecting strong investor confidence and market recognition of the company's future prospects.
- Sales Breakthrough: The blockbuster drugs Skyrizi and Rinvoq generated a staggering $24 billion in sales in 2025, effectively offsetting the impact of Humira's patent expiration and solidifying AbbVie’s leadership in the pharmaceutical sector.
- Diverse Revenue Streams: AbbVie excelled in neuroscience, with Vyralar achieving a nearly 7% year-over-year sales increase to $931 million in Q3 2025, highlighting the company's growth potential across multiple sectors.
- Active Acquisitions and Partnerships: AbbVie acquired Capstan Therapeutics and entered into a collaboration with China’s Simcere Zaiming, enhancing its research capabilities in autoimmune therapies and demonstrating a strategic intent to expand its portfolio.
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