How could AbbVie's next-gen immunology drug affect Eli Lilly and Company?
AbbVie's potential successor to Skyrizi could intensify competition with Eli Lilly. The development of ABBV-466, a next-generation immunology drug, is positioned to replace Skyrizi, which is currently AbbVie's largest growth driver. ABBV-466 combines risankizumab with trosunilimab and showed encouraging Phase 2a results, achieving higher rates of remission in patients with Crohn's disease compared to Skyrizi monotherapy. If these results are confirmed in Phase 3 studies, the drug could become a strong successor to Skyrizi, helping AbbVie maintain its market position as Skyrizi's patents may begin to expire in the U.S. by 2033. This strengthened pipeline would increase AbbVie's market share and revenue in the immunology sector, directly intensifying the competitive landscape for Eli Lilly and Company.
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How it reaches Eli Lilly and Company
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AbbVie is developing a next-generation immunology drug, ABBV-466, as a potential successor to Skyrizi. Skyrizi, which generated almost $10 billion in sales in the first half of the year, faces potential biosimilar competition as its patents may expire in the U.S. by 2033. AbbVie recently announced encouraging Phase 2a results for this successor drug.
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As a direct competitor in the pharmaceutical market, the successful launch of a major next-generation drug like ABBV-466 would strengthen AbbVie's immunology portfolio. This increased market share and revenue potential for AbbVie would intensify the competitive pressure on Eli Lilly and Company.
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The facts so far
As reported. Each one links to where it comes from.
- Skyrizi generated almost $10 billion in sales in the first half of the year.fool.com
- Skyrizi's web of patents may begin to expire in the U.S. by 2033.fool.com
- ABBV-466 achieved higher rates of remission among patients with Crohn's disease than Skyrizi and trosunilimab monotherapy in Phase 2a.fool.com
- ABBV-466 combines risankizumab, the active ingredient in Skyrizi, with trosunilimab.fool.com
Why it matters
The immunology sector is a massive driver of pharmaceutical revenue, and Skyrizi has been AbbVie's single biggest growth driver, generating nearly $10 billion in sales. The potential loss of this revenue stream due to biosimilar competition by 2033 represents a significant financial risk for AbbVie, making the success of ABBV-466 critical to the company's long-term financial health.
AbbVie and Eli Lilly and Company are established, direct competitors in the pharmaceutical market. The ability of AbbVie to successfully transition its market leadership from Skyrizi to a next-generation drug like ABBV-466 would fundamentally shift the competitive balance in the immunology space, impacting market share and revenue for both giants.
What we don't know yet
- What are the results of ABBV-466's Phase 3 studies?
- How quickly can AbbVie move ABBV-466 through the regulatory approval process?
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Reporting
- fool.comThursday
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Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.