Piper Sandler has reaffirmed its positive stance on shares of pharmaceutical giant AbbVie (NYSE:NYSE:ABBV), maintaining an Overweight rating alongside a $209.00 price target.
The endorsement follows a comprehensive dialogue with a key opinion leader (KOL) in the field of inflammatory bowel disease (IBD), which highlighted a substantial opportunity within the moderate-to-severe IBD patient population that remains untreated or under-treated.
The KOL expressed a preference for AbbVie’s Skyrizi, particularly when used in conjunction with Rinvoq, among the array of advanced therapies available. The discussion also touched on the potential of AbbVie’s pipeline, notably the investigational drug obefazimod, developed by subsidiary Allergan (NYSE:AGN) (referred to as ABVX in the context). The KOL was optimistic about obefazimod due to its unique mechanism of action and the encouraging phase 2 data for both induction and maintenance treatment in IBD.
The analyst's comments indicate that despite the presence of many advanced treatments in the market, the untapped segment of patients presents a significant growth opportunity for AbbVie.
The KOL's enthusiasm for AbbVie's product lineup, especially Skyrizi and Rinvoq, along with the promising prospects for obefazimod, underscore the company's strong position in the IBD treatment landscape.
Piper Sandler's outlook for AbbVie is bullish, with an expectation that the company and its products will continue to thrive in the expanding field of IBD treatments. The firm's price target of $209.00 reflects this confidence in AbbVie's long-term market potential.
In other recent news, AbbVie has been making significant strides in the pharmaceutical sector. The European Medicines Agency endorsed AbbVie's ovarian cancer drug, ELAHERE, based on the results of the Phase 3 MIRASOL clinical trial. The drug has already been approved by the FDA in the United States and is currently under review for marketing authorization in other countries.
In another development, AbbVie's subsidiary, Allergan Aesthetics, received approval for Botox Cosmetic as a treatment for masseter muscle prominence in China. The treatment is expected to be extended to other global markets. The company also announced a quarterly cash dividend of $1.55 per share, continuing its history of providing dividends to shareholders.
AbbVie has made amendments to its bylaws, including the removal of a contested provision, as part of its efforts to streamline corporate governance. In terms of analyst updates, Deutsche Bank held steady on its rating for AbbVie, maintaining a price target of $175.00, while Piper Sandler and Goldman Sachs raised their price targets to $209 and $200 respectively.
The European Commission granted conditional approval for TEPKINLY, a drug for treating adult patients with relapsed or refractory follicular lymphoma. Additionally, Allergan Aesthetics launched a new skincare product, SkinMedica® HA5® Hydra Collagen Replenish + Restore Hydrator.
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