AbbVie (NYSE:ABBV) stock took a hit today following comments concerning biosimilars.
The comment that sent ABBV stock down today comes from research firm Citron Research. The following is the Tweet concerning AbbVie.
“$ABBV the next great drug short. TGT price $60 Gottlieb’s comments for biosimilars and the removal of safe harbor is a DIRECT hit on Abbvie’s abuse of Humira. Citron to release a series of reports detailing the Dirty Money. POTUS, AMZN, and now FDA on the case $60 in 12 months”
The mention of Gottlieb in the Tweet is referring to comments made by U.S. Food and Drug Administration Commissioner Scott Gottlieb. These comments came out yesterday and were concerning the stalling of biosimilars by drug companies.
Here’s a portion of what Gottlieb had to say on the matter.
“While the FDA has approved 11 biosimilars through 2018, only three are now marketed in the U.S.Competition is, for the most part, anemic.
It’s anemic because consolidation across the supply chain has made it more attractive for manufacturers, Pharmacy Benefit Managers, Group Purchasing Organizations and distributors to split monopoly profits through lucrative volume-based rebates on reference biologics—or on bundles of biologics and other products—rather than embrace biosimilar competition and lower prices.
It’s anemic because litigation has delayed market access for biosimilar products that are, or shortly will be, available in markets outside the U.S. several years before they’ll be available to patients here. These delays can come with enormous costs for patients and payors.”
ABBV stock was down 4% as of Thursday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.