Many investors already know Abbott Labs (NYSE:ABT) as the maker of Humira -- which is not only the company's No. 1 drug, but one of the top-grossing drugs in the world. In the following video, Brenton Flynn runs through today's news of a newly approved Humira indication in Europe, the treatment of Crohn's disease in children. The approval puts Humira a step ahead of Merck's (NYSE:MRK) Remicade, which is approved for adults only.
While this was largely an expected approval that won't move the needle on Abbott's share price, it's a small victory for what will be a critically important drug for investors in Abbott's pharma spinoff early next year. At this new company, named AbbVie, Humira will account for the majority of revenues and profits. This significant concentration presents a challenging situation for investors to understand as Humira's patent expiration approaches in late 2016 and as new competitors such as Pfizer's (NYSE:PFE) Xeljanz pill enters the market.