AbbVie Sues HHS Over Botox Price Control Regulations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy ABBV?
Source: Yahoo Finance
- Legal Challenge: AbbVie filed a lawsuit against the U.S. Department of Health and Human Services in federal court, contesting the Centers for Medicare & Medicaid Services' (CMS) decision to impose price controls on Botox, arguing that this violates the exclusion established by Congress in the Inflation Reduction Act of 2022.
- Product Classification Dispute: AbbVie claims that one-third of Botox consists of human serum albumin, a protein derived from human plasma that is essential for the product's safety and efficacy, thus categorizing it as a 'plasma-derived product' exempt from price controls.
- Financial Impact Assessment: Botox accounted for over 10% of AbbVie's $61.16 billion revenue last year, with therapeutic purchases making up about 6%, and the price controls could force the company to sell at 'confiscatory prices', jeopardizing profitability and market position.
- Constitutional Rights Argument: AbbVie asserts that CMS's actions violate its First Amendment rights by dictating how it must communicate pricing, and also constitute a due process violation and illegal 'taking' under the Fifth Amendment, seeking to end the imposed price controls.
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Analyst Views on ABBV
Wall Street analysts forecast ABBV stock price to rise
22 Analyst Rating
15 Buy
7 Hold
0 Sell
Moderate Buy
Current: 227.500
Low
218.00
Averages
253.26
High
289.00
Current: 227.500
Low
218.00
Averages
253.26
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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- Historical Returns Comparison: Data from The Motley Fool indicates that previously recommended stocks like Netflix and Nvidia yielded returns of 414,554% and 1,120,663% respectively, highlighting the significant long-term investment value of their recommendations.
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- 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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See More
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- Attractive Valuation: Currently trading at a price-to-earnings ratio of 13, Novo Nordisk's stock price is $49.55, allowing a $500 investment to purchase 10 shares, making it an ideal choice for investors given its strong market position and low valuation.
- AbbVie as a Defensive Investment: AbbVie has risen 24% during the 2022 bear market since its spin-off from Abbott in 2013, showcasing its resilience as a defensive stock, while its dividend has increased for 13 consecutive years, currently yielding 3.1%.
- Future Growth Potential: AbbVie's drugs Skyrizi and Rinvoq achieved net revenue growth of 33% and 30% in 2025, respectively, with analysts forecasting an 11% stock price increase over the next 12 months to $250 per share, highlighting its strong performance amid drug transitions.
See More
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- Optimistic Market Outlook: Experts predict that the GLP-1 market will grow to $254 billion by 2034, with a compound annual growth rate of 17%, positioning Novo Nordisk to benefit significantly from this rapidly expanding market and further solidify its leadership.
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- Future Growth Potential: AbbVie's drugs Skyrizi and Rinvoq achieved net revenue gains of 33% and 30% in 2025, respectively, with analysts forecasting an 11% stock price increase over the next 12 months to $250 per share, enhancing its investment appeal.
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