AbbVie Stock Dips 7.28% Amid Intensifying Legal Dispute Over Trade Secrets

AbbVie has recently found itself in a challenging position as the company's shares fell by 7.28% on April 4th, marking a continuous four-day decline with a total drop of 10.77% over this period. This downturn led the stock to reach its lowest point since February 2025.

Concurrently, AbbVie has been embroiled in a legal battle over allegations of trade secret misappropriation. The pharmaceutical giant has filed a lawsuit in the U.S. District Court for the Western District of Washington against Genmab, its subsidiary Seagant Bio, and former AbbVie employees. AbbVie accuses these parties of making unauthorized use of its proprietary ADC technology, specifically a diglycan-based linker technology designed to enhance hydrophilicity in ADCs.

The case primarily centers around Rina-S, a developmental ADC drug by Genmab, which has employed PEGlated sorbitol linkers for efficient drug delivery. This drug, aimed at treating ovarian cancer, has received fast-track designation from the U.S. Food and Drug Administration and is presently in Phase 3 clinical trials.

AbbVie seeks damages and comprehensive injunctive relief from the court, although it has not claimed or sought to enforce any patent rights against the defendants. Genmab has denied AbbVie's charges, asserting that none of AbbVie's alleged trade secrets are part of any developed product. The ongoing litigation against Genmab is one among several similar lawsuits AbbVie has filed concerning former employees and competitors, indicating an aggressive strategy to protect its intellectual assets.

Meanwhile, AbbVie continues to maintain a strong global presence as a research-driven biopharmaceutical leader, focusing on developing advanced therapies for complex diseases. As competition in the global pharmaceutical industry intensifies, such legal encounters highlight the necessity for strategic measures to preserve market share and protect intellectual property.

In parallel, AbbVie's leadership has been active on the international stage. Recently, AbbVie's Global Vice President met with a Chinese trade official, expressing optimism in expanding R&D investments in China. This engagement underscores the importance of forging international collaborations and addressing the growing demand for innovative biopharmaceutical solutions on a global scale.