AbbVie and Other Drugmakers Reach Price Reduction Agreements with U.S. Government
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 19 2025
0mins
Should l Buy ABBV?
Source: Newsfilter
- Price Reduction Agreements: AbbVie, Bristol Myers Squibb, Gilead, and other drugmakers are expected to announce agreements with the U.S. government on Friday to lower certain prescription drug prices, aiming to address the high drug costs in the U.S., which could impact these companies' revenue structures.
- Market Response Stabilized: Although the U.S. government may implement stricter drug price controls, the agreements reached so far have alleviated investor concerns, demonstrating the market's adaptability to drug pricing reforms.
- Impact on Medicaid Spending: Analysts note that while Medicaid accounts for only about 10% of U.S. drug spending, its price discounts exceed 80% in some cases, which may influence drugmakers' pricing strategies and profit margins.
- Industry Dynamics Shift: As more drug companies negotiate with the government, price competition within the industry is expected to intensify, potentially leading to an overall decline in profit levels in the drug market, prompting companies to reassess their market positioning and strategic direction.
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Analyst Views on ABBV
Wall Street analysts forecast ABBV stock price to rise
18 Analyst Rating
12 Buy
6 Hold
0 Sell
Moderate Buy
Current: 227.500
Low
223.00
Averages
252.00
High
289.00
Current: 227.500
Low
223.00
Averages
252.00
High
289.00
About ABBV
AbbVie Inc. is a global, diversified research-based biopharmaceutical company. It is engaged in research and development, manufacturing, commercialization and sale of medicines and therapies. Its product portfolio includes Immunology, Oncology, Aesthetics, Neuroscience, Eye Care and Other Key Products. Immunology products include rheumatology, dermatology and gastroenterology. Oncology products include Imbruvica, Venclexta/Venclyxto, Elahere and Epkinly. Aesthetics portfolio consists of facial injectables, plastics and regenerative medicine, body contouring, and skincare products. Its Neuroscience products include Botox Therapeutic, Vraylar, Duopa and Duodopa, Ubrelvy, and Qulipta. Eye Care products include Ozurdex, Lumigan/Ganfort, Alphagan/Combigan, Restasis, and other eye care. Other key products include Mavyret/Maviret, Creon, and Linzess/Constella. Its investigational candidate, bretisilocin, is for the treatment of patients with moderate-to-severe major depressive disorder (MDD).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Growth Expectations: AbbVie anticipates a sales growth of 9.5% by 2026, projecting combined sales of over $31 billion for Skyrizi and Rinvoq, indicating potential in new products and management's confidence in future performance despite current challenges.
- Dividend Record: AbbVie has increased its dividend for 54 consecutive years, earning the title of 'Dividend King', which underscores its attractiveness to long-term income investors, even in light of recent stock price declines.
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- Declining Humira Sales: Although Humira remains the third-best-selling drug, its sales continue to decline due to biosimilar competition, which has affected market confidence in AbbVie's future overall revenue growth.
- Optimistic Outlook: AbbVie expects a sales growth of 9.5% by 2026, with combined sales for Skyrizi and Rinvoq projected to exceed $31 billion, surpassing earlier management forecasts and indicating potential in new drug development.
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- Overdone Sell-off Assessment: Despite the market pressure, the sell-off of certain stocks appears overdone, and analysts believe these stocks remain attractive for inclusion in investment portfolios, particularly Marvell Technology.
- Marvell Technology Growth Potential: As an AI-focused company, Marvell Technology has gone through significant ups and downs, yet its growth trajectory is still viewed positively, indicating potential for long-term investment.
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