AbbVie, Inc. (NYSE:ABBV) revealed that it has bagged the U.S. Food and Drug Administration’s (FDA) approval for RINVOQ to treat moderate to severe atopic dermatitis in adults and children 12 years of age and older.
Atopic dermatitis is a chronic, relapsing inflammatory condition that results in intense itching and scratching, leading to cracked, scaly and oozing skin. It affects about 7% of adults and 12% of adolescents in the U.S., with 40% of adults experiencing moderate to severe symptoms.
RINVOQ can be administered to adults and children 12 years of age and older, weighing at least 40 kg, at a dosage of 15 mg once daily. The dose may be increased to 30 mg once daily if no adequate response is achieved in patients less than 65 years of age.
The approval was based on efficacy and safety data from the Phase 3 program for atopic dermatitis with more than 2,500 patients evaluated across three studies.
The Senior Vice-President of Research and Development and Chief Scientific Officer at AbbVie, Thomas Hudson, M.D., said, “This additional approval for RINVOQ provides a once-daily oral option that can significantly improve the debilitating itch and skin symptoms of atopic dermatitis. It’s also a proud moment for AbbVie as we continue our efforts to improve care in this disease state and other chronic, immune-mediated conditions.”
Following the news, Piper Sandler analyst Christopher Raymond reiterated a Buy rating on the stock with a price target of $160 (17.8% upside potential).
The analyst said, “With what seems to be benign warning language and flexibility on dosing, we think the drug is now primed to capitalize on what has been largely positive dermatologist survey feedback regarding this opportunity.”
Consensus among analysts is a Strong Buy based on 13 Buys versus 3 Holds. The average AbbVie price target of $139.71 implies upside potential of 2.8%. Shares have gained 28.7% over the past year.
ABBV has been increasing its dividend once each year in January with the trend continuing in 2022 as well. The company has raised its quarterly common stock dividend to $1.41, up 8.5% from the previous payout, which is payable on February 15. AbbVie’s dividend yield of 3.91% is better than the sector’s average of 1.37%.
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