AbbVie (NYSE:ABBV) snapped six consecutive sessions of losses on Thursday as the stock ended 0.29% lower at $226.87.
Since October 8, the stock has closed in the red every day until October 15, during which ABBV lost over 2%. On a year-to-date basis, it has increased by nearly 28% compared to a 12.71% rise in the broader markets.
On Wednesday, the stock closed 1.27% lower, pressuring the already declining stock for the sixth consecutive day. The fall followed Microcap Enveric Biosciences’ (ENVB) threat to take legal action against AbbVie, alleging that the drugmaker’s major depressive disorder candidate, bretisilocin, which it agreed to acquire from Gilgamesh Pharmaceuticals in August for up to $1.2B, infringes on its patent.
“Enveric will vigorously defend its intellectual property and take all steps necessary to maximize the value of its intellectual property for shareholders,” Enveric CEO Joseph Tucker said in a statement.
As per Seeking Alpha’s quant ratings, it is recommended to Hold ABBV. It has a score of 3.31 out of 5. The company has been graded A+ for profitability but holds a D rating for growth. However, Seeking Alpha and Wall Street analysts are bullish on the stock and have a Buy recommendation for the stock.
Seeking Alpha analyst ONeil Trader reiterated its Buy rating on the back of strong commercial results, pipeline progress, and its legal win securing Rinvoq’s long-term market exclusivity.
Speaking about its valuation, the analyst said that despite being at 10-year highs, it reflects improved long-term growth prospects.
“The valuation is on the high side now, but I believe it reflects investors finally looking past the Humira patent cliff and observing the improving medium- and long-term growth outlook for the company,” it said.