It might have been a disaster, but biotech stock AbbVie (NASDAQ:ABBV) is turning things around. Reports of counterfeit Botox have emerged, and AbbVie is working with the Food and Drug Administration (FDA) to track down the responsible parties and get the fakes out of service. That was enough to tick AbbVie up fractionally in Tuesday afternoon’s trading.
Reports noted that at least nine states were reporting counterfeit Botox treatments, and in 19 cases or potentially more, people were hospitalized following the treatments. Botox—which is also known as botulinum toxin, the same thing that causes botulism—works by paralyzing facial muscles, which can reduce the presence of wrinkles, or at least their severity.
Reports suggest that several of the victims also had their treatments done in places like spas or people’s homes, where those who were providing the treatments weren’t qualified to administer them.
A Major Revenue Stream
The idea of people having active—albeit purified and refined—botulism toxin shot into their faces may leave some cold, but it’s been a big deal for AbbVie. Botox brought in $5.7 billion in net revenue in 2023 alone, representing roughly 6% growth on a year-over-year basis. People like the effect, there’s no doubt of that, and AbbVie is undoubtedly eager to maintain that product line. That means vigilance when things like this happen, and AbbVie actively cooperating with investigations should put people’s minds at ease and keep them getting their faces shot full.
What Is the Long-Term Forecast for AbbVie?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on ABBV stock based on 12 Buys and five Holds assigned in the past three months, as indicated by the graphic below. After a 5.22% rally in its share price over the past year, the average ABBV price target of $181.47 per share implies 11.22% upside potential.
