Will Investors Take the Plunge Over the Patent Cliff With Humira?

By Maxx Chatsko – May 13, 2013 at 10:09AM

NYSE: ABBV

AbbVie

Market Cap

$286B

Today's Change

(-0.38%) -$0.61

Current Price

$161.67

Price as of April 15, 2024, 4:00 p.m. ET

Humira, the world's most successful current drug, is set to lose exclusivity in 2016 in the U.S. and in 2018 in Europe. The biologic provides over half of AbbVie's total revenue. Should investors start to panic?

In the following video, Fool contributor Maxxwell Chatsko examines what AbbVie (ABBV -0.38%) investors should expect when Humira comes off patent in the next several years. He discusses how this patent cliff will differ from the steep cliffs traveled by Pfizer (PFE 0.19%) with Lipitor and Bristol-Myers Squibb (BMY 0.48%) with Plavix. However, he also cautions investors to expect sales to fall dramatically with several generic versions currently under development. Nonetheless, there are key differences that should aid AbbVie and its investors transition to a future without Humira.

Fool contributor Maxx Chatsko and Max Macaluso, Ph.D. have no position in any stocks mentioned. Check out Maxxwell's personal portfolio, his CAPS page, or follow him on Twitter @BlacknGoldFool to keep up with his writing on energy, bioprocessing, and emerging technologies.

The Motley Fool recommends Johnson & Johnson. The Motley Fool owns shares of Johnson & Johnson. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.