Pharmaceutical sector is in bind as the new Donald Trump administration begins to start functioning. The new president has eluded that the drug companies may see lots of changes coming their way. One big area of concern is the drug pricing. Regardless of the political scenario, AbbVie company has announced its decision to hike the price of its Humira drug by over 8%.
However, AbbVie said that it is unlikely to raise the price of the drug again this year. Thus, the company is leaning away from its long-term practice of increasing the price twice annually. The most recent price hike is milder than its previous bumps. The company had increased the price by 9.9% and 7.9% last year.
Humira is the main revenue generator for AbbVie. However, the main patent for the drug expired last year. The company expects the IP moat to offer protection biosimilar encroachment until 2022. The company stock started out well this year and offered dividend. Its 12 months gain stands at nearly 4 percent.
Another positive news for the company came out during the weekend as it announced receiving the FDA approval for its lymphoma drug, IMBRUVICA (ibrutinib). The drug candidate had shown 46% efficacy rate in clinical trial. The drug has been approved as a therapy for patients affected with marginal zone lymphoma.