A class action lawsuit has been filed on behalf of purchasers of the securities of AbbVie Inc. between April 30, 2021 and August 31, 2021, inclusive (the “Class Period”). According to the Complaint, AbbVie Inc. is one of the world’s largest pharmaceutical companies. Its biggest drug, Humira—an anti-inflammatory drug used to treat illnesses such as Crohn’s disease, ulcerative colitis, rheumatoid arthritis (“RA”), and more—was, in 2021 (aside from COVID-19 vaccines), the world’s best-selling prescription drug, with net revenue of more than $20 billion in 2021. Humira accounts for more than a third of AbbVie’s net revenue.
While patents have protected Humira’s blockbuster profits for years, biosimilar drugs will be permitted to enter the market and compete directly with Humira beginning in 2023. As a result, Humira’s sales are widely expected to decline significantly over the next several years—thereby undermining AbbVie’s revenue and earnings.
Accordingly, AbbVie’s future revenue and earnings depend in large part on the Company’s ability to develop new sources of revenue to offset reduced Humira sales. Rinvoq – an anti-inflammatory drug manufactured by AbbVie and used to treat RA and other diseases by inhibiting Janus kinase (“JAK”) enzymes – was touted as one such drug. Rinvoq was initially approved in the United States to treat only moderate to severe RA. However, AbbVie was actively pursuing additional treatment indications and, in 2020, asked the U.S. Food and Drug Administration (the “FDA”) to approve Rinvoq for the treatment of several other diseases, including psoriatic arthritis, ankylosing spondylitis, and atopic dermatitis.
The Complaint alleges that, throughout the Class Period, the Defendants made materially false and/or misleading statements, about the company’s business and operations. Specifically, the Complaint alleges Defendants misrepresented and/or failed to disclose that:
- safety concerns about Xeljanz extended to Rinvoq and other JAK inhibitors;
- as a result, it was likely that the FDA would require additional safety warnings for Rinvoq and would delay the approval of additional treatment indications for Rinvoq; and
- therefore, Defendants’ statements about the company’s business, operations, and prospects lacked a reasonable basis. As a result of the alleged wrongful acts and omissions, AbbVie’s securities have experienced a significant decline in market value and AbbVie investors have suffered significant damages.
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