AbbVie Inc. surged to a record high on Thursday after the U.S. drugmaker said it does not expect generic competition to its blockbuster immunology therapy Rinvoq until at least 2037 — a four-year extension of exclusivity that analysts say could reshape its revenue outlook well into the next decade. Shares rose about 4% in morning trading.
Rinvoq, an oral JAK inhibitor prescribed for rheumatoid arthritis and a growing list of other autoimmune conditions, is AbbVie’s second-largest product behind Skyrizi. Both drugs have been central to AbbVie’s strategy to offset steep declines in Humira, once the world’s best-selling medicine, which began losing market share to lower-priced biosimilars in the U.S. in 2023.
The company said it had reached a settlement with several generic drugmakers — subject to certain provisions — that would block competing versions of Rinvoq until April 2037. Analysts called the agreement a major win for AbbVie, providing an extended period of exclusivity and steady revenue from one of its key growth drivers.
“Several more years of runway on one of its key growth drivers” will give AbbVie time to push forward a pipeline of experimental therapies and plan for looming patent expirations in the mid-2030s, wrote J.P. Morgan’s Chris Schott.
Rinvoq generated $5.97 billion in sales in 2024, representing more than 10% of AbbVie’s total revenue. Together with Skyrizi, the two drugs are projected to bring in more than $31 billion in 2027, according to AbbVie’s own forecasts. Analysts at William Blair said they had previously assumed a 2033 loss of exclusivity for Rinvoq; adding four more years could boost peak-year sales by about $2 billion.
“This is clearly a positive development, supporting longer-term protection of the Rinvoq franchise,” wrote William Blair analyst Matt Phipps.
Beyond rheumatoid arthritis, AbbVie is testing Rinvoq in a range of immune-mediated conditions, including alopecia areata, vitiligo, hidradenitis suppurativa and systemic lupus erythematosus. Each additional approval could widen the drug’s market and strengthen AbbVie’s immunology leadership as Humira revenue fades.
The announcement underscores AbbVie’s aggressive push to lock in revenue from its new flagship medicines, providing investors with greater visibility into its earnings trajectory and reinforcing its position as one of the world’s largest biopharmaceutical companies.
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