AbbVie Resolves Lawsuit with Generic Upadacitinib Manufacturers.

AbbVie Inc. has settled a lawsuit with generic producers of Upadacitinib, a drug intended for treating rheumatoid arthritis, psoriasis, and other conditions. The settlement resolves patent infringement claims and allows generic versions of the drug to enter the market. AbbVie will receive royalties on sales of generic Upadacitinib. The settlement will not impact AbbVie's net sales, which are primarily generated in the United States and other developed markets.

AbbVie Inc. (ABBV) has reached a settlement with generic producers of Upadacitinib, a drug intended for treating rheumatoid arthritis, psoriasis, and other conditions. The settlement resolves patent infringement claims and allows generic versions of the drug to enter the market, with AbbVie receiving royalties on sales of generic Upadacitinib Why Is AbbVie Stock Trading Higher On Thursday?^[1].

The agreement, which includes license terms, prevents generic entry for Upadacitinib tablets until April 2037 in the United States. Pediatric exclusivity could further extend the market protection under the agreement Why Is AbbVie Stock Trading Higher On Thursday?^[1]. This settlement is a strategic move for AbbVie to maintain its market share and revenue stream from Upadacitinib, a key drug in its portfolio.

The settlement comes amid strong sales performance for Upadacitinib. In the second quarter of 2025, Rinvoq (Upadacitinib) sales reached $2.03 billion, an increase of 41.8% year over year (+41.2% on an operational basis) Why Is AbbVie Stock Trading Higher On Thursday?^[1]. The FDA approved Upadacitinib for treating giant cell arteritis in April, further expanding its indications Why Is AbbVie Stock Trading Higher On Thursday?^[1].

While the settlement does not impact AbbVie's net sales, which are primarily generated in the United States and other developed markets, it does provide a buffer against generic competition. This allows AbbVie to continue generating revenue from Upadacitinib while potentially securing a more stable pricing environment.

Investors should monitor the ongoing legal battle between Ionis Pharmaceuticals (IONS) and Arrowhead Pharmaceuticals (ARWR), which could have broader implications for the pharmaceutical industry Ionis, Arrowhead file dueling patent lawsuits over genetic-disorder drug^[2]. However, the immediate focus remains on AbbVie's strategic move to secure market protection for Upadacitinib.