AbbVie Extends Patent Protection for Rinvoq Until 2037
ByAinvest
Thursday, Sep 11, 2025 12:16 pm ET2min read
ABBV--
The settlement, reached with all generic manufacturers that had filed applications for generic versions of Rinvoq, ensures that no generic version of upadacitinib tablets (marketed as Rinvoq) will enter the U.S. market before April 2037 [2]. This development is a significant victory for AbbVie, which has been managing lost revenue from its former mega-blockbuster, Humira. Rinvoq's sales have been climbing rapidly, reaching $6 billion in the previous year and are forecast to potentially hit peak sales of over $12 billion.
AbbVie's shares initially saw a 4.4% increase in the morning session before cooling down to $220.35, up 4.1% from the previous close. The market's reaction to the news indicates that investors consider this development meaningful but may not fundamentally change their perception of the business [1]. Wells Fargo analyst Mohit Bansal described the settlement as a "big win" for AbbVie, noting that consensus estimates had previously modeled patent expiry in 2032 [2]. Bansal estimates the extended protection could add between $11 to $24 per share in discounted cash flow value.
The extended patent protection for Rinvoq is expected to boost AbbVie's long-term revenue outlook. The company now expects combined Skyrizi and Rinvoq revenue to top $31 billion in 2027 [3]. Analysts at William Blair have increased peak Rinvoq sales projections to $19 billion in 2033 and $15 billion in 2036, up from $18 billion and $1 billion, respectively [3]. These projections indicate strong growth potential for AbbVie's immunology portfolio, which includes Rinvoq and Skyrizi.
AbbVie's stock has been relatively stable, with only five moves greater than 5% over the last year [1]. The company's recent earnings reports have been strong, with adjusted earnings of $2.97 per share and revenues of $15.42 billion in the second quarter, both numbers surpassing analyst estimates [1]. This performance was driven by robust sales from its immunology drugs, Rinvoq and Skyrizi, which successfully offset lower sales from the company's older drug, Humira.
In conclusion, AbbVie's extended patent protection for Rinvoq provides a significant boost to the company's long-term revenue outlook. The market's reaction to the news indicates that investors consider this development meaningful, although it may not fundamentally change their perception of the business. AbbVie's strong earnings performance and growth potential in its immunology portfolio make it an attractive investment opportunity in the pharmaceutical sector.
AbbVie has settled litigation with generic drugmakers to extend patent protection for its autoimmune drug Rinvoq until at least April 2037. The company now expects combined Skyrizi and Rinvoq revenue to top $31 billion in 2027. Analysts at William Blair have increased peak Rinvoq sales projections to $19 billion in 2033 and $15 billion in 2036, up from $18 billion and $1 billion, respectively. AbbVie shares rose 4.4% to $220.88 after the announcement.
Pharmaceutical giant AbbVie (NYSE: ABBV) saw its shares jump 4.4% to $220.88 on September 10, 2025, following the announcement of a significant patent settlement [1]. The company has secured extended patent protection for its blockbuster autoimmune drug, Rinvoq, until at least April 2037. This extension provides about five more years of market exclusivity than previously anticipated, securing a major future revenue stream for the company.The settlement, reached with all generic manufacturers that had filed applications for generic versions of Rinvoq, ensures that no generic version of upadacitinib tablets (marketed as Rinvoq) will enter the U.S. market before April 2037 [2]. This development is a significant victory for AbbVie, which has been managing lost revenue from its former mega-blockbuster, Humira. Rinvoq's sales have been climbing rapidly, reaching $6 billion in the previous year and are forecast to potentially hit peak sales of over $12 billion.
AbbVie's shares initially saw a 4.4% increase in the morning session before cooling down to $220.35, up 4.1% from the previous close. The market's reaction to the news indicates that investors consider this development meaningful but may not fundamentally change their perception of the business [1]. Wells Fargo analyst Mohit Bansal described the settlement as a "big win" for AbbVie, noting that consensus estimates had previously modeled patent expiry in 2032 [2]. Bansal estimates the extended protection could add between $11 to $24 per share in discounted cash flow value.
The extended patent protection for Rinvoq is expected to boost AbbVie's long-term revenue outlook. The company now expects combined Skyrizi and Rinvoq revenue to top $31 billion in 2027 [3]. Analysts at William Blair have increased peak Rinvoq sales projections to $19 billion in 2033 and $15 billion in 2036, up from $18 billion and $1 billion, respectively [3]. These projections indicate strong growth potential for AbbVie's immunology portfolio, which includes Rinvoq and Skyrizi.
AbbVie's stock has been relatively stable, with only five moves greater than 5% over the last year [1]. The company's recent earnings reports have been strong, with adjusted earnings of $2.97 per share and revenues of $15.42 billion in the second quarter, both numbers surpassing analyst estimates [1]. This performance was driven by robust sales from its immunology drugs, Rinvoq and Skyrizi, which successfully offset lower sales from the company's older drug, Humira.
In conclusion, AbbVie's extended patent protection for Rinvoq provides a significant boost to the company's long-term revenue outlook. The market's reaction to the news indicates that investors consider this development meaningful, although it may not fundamentally change their perception of the business. AbbVie's strong earnings performance and growth potential in its immunology portfolio make it an attractive investment opportunity in the pharmaceutical sector.
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