AbbVie | $ABBV Stock | Shares Fall 11% After A Disappointing Cancer Drug Experiment




Shares of AbbVie, Inc sank more than 11% after the pharmaceutical company announced that an experiment it had been carrying out on a cancer drug called rovalpituzumab tesirine had gone bad. Although the drug may still go on to succeed, the company said it would not request the Food and Drug Administration for a fast approval, as it had originally planned.

Thursday’s performance on its stock was the worst drop in a single day since the drug manufacturer went public six years ago. The second worst decline happened in 2015, when the firm’s stock lost 10% of its value, after a warning from the FDA concerning the safety of its hepatitis C treatments that were found to cause severe liver injury.

ABBV Earnings & Outlook

AbbVie boosted its earnings forecast for financial year 2018 significantly at the beginning of the year thanks to the U.S. tax overhaul. The firm’s portfolio of drugs seems to be promising, as it seeks to lessen its reliance on its most profitable drug Humira.

Its adjusted earnings per share for 2018 are between $7.33 and $7.43, up from its previous $6.37 to $6.57 forecast in 2017. On the other hand, the company projects to make a revenue of $32 billion, which is a billion higher than the current analyst projection.

AbbVie’s CEO Comments

During the presentation of the company’s forecast for 2018, CEO Rick Gonzalez said the they had benefited from its top-selling medicine HUMIRA, the new U.S. tax law, and other latest products have profited the company to a large context. With access to cash abroad and friendly tax laws, the CEO said he would talk to the board on whether to boost share buybacks and raise its dividend. –Reuters

AbbVie, Inc Company Profile

AbbVie, Inc. is an American pharmaceutical firm headquartered in North Chicago, Illinois. The company discovers, creates, markets and sells its pharmaceutical products in various countries around the world.

The most popular product that is developed and sold by the company is a biologic therapy called HUMIRA, which is to treat autoimmune diseases. Other products made by AbbVie include an oral therapy for treating chronic lymphocytic leukemia called IMBRUVICA, and drug known as VIEKIRA PAK that is used for treating adults with chronic hepatitis C.

AbbVie also provides a HIV-1 drugs that is used together with other anti-HIV drugs to suppress the spread of HIV in patients. AbbVie’s other products include Norvir, Synagis, AndroGel, Creon, Synthroid, Lupron, Duopa, Duodopa, Sevoflurane and ZINBRYTA.

Its products are sold through government agencies, wholesalers, health care, distributors, health care facilities, independent retailers, and specialty pharmacies. The company has strategically collaborates with C2N Diagnostics; Janssen Biotech Inc., Voyager Therapeutics, Inc., and Alector, Inc. –Reuters