AbbVie IncABBV
▼ NegativeRegulationrelevance
Trump's demand for drug price cuts pressures AbbVie's pricing power.
Impact on stocks 1
Biotech & Genomic Medicine
AbbVie IncAbbVie Stock Slumps After Trump Demands Drug Price Cuts
RegulationEarnings
AbbVie shares gave up early gains and closed slightly lower on Thursday after President Donald Trump sent letters to major U.S. pharmaceutical companies demanding prescription drug price reductions within 60 days. The stock had initially risen on better-than-expected second-quarter results, with total revenue of just over $15.4 billion, a nearly 7% increase from a year ago, and adjusted earnings of $2.97 per share, both topping analyst estimates. Sales of blockbuster drugs Skyrizi and Rinvoq surged 62% to $4.4 billion and 42% to more than $2 billion, respectively, while Humira revenue fell 58% to less than $1.2 billion due to biosimilar competition. AbbVie also raised its full-year 2025 adjusted earnings guidance to $11.88 to $12.08 per share, up from the prior range of $11.67 to $11.87. The late-session decline mirrored the broader S&P 500 index after news of Trump's demand, which included a letter to AbbVie CEO Rob Michael stating that brand-name drug prices in the U.S. are up to three times higher than elsewhere.
AbbVie IncTrump's demand for drug price cuts pressures AbbVie's pricing power.