NORTH CHICAGO, Ill. - AbbVie (NYSE: NYSE:ABBV) and Gedeon Richter Plc. have announced an agreement to discover and develop new treatments for neuropsychiatric conditions. This collaboration builds on a nearly 20-year partnership that has produced CNS therapies, including cariprazine (VRAYLAR® / REAGILA®) and investigational drug ABBV-932.
The new agreement involves preclinical and clinical R&D, with both companies sharing financing. Richter will receive a $25 million upfront payment and could receive additional milestones and royalties. AbbVie retains worldwide commercialization rights, with exceptions for Richter's traditional markets such as Europe, Russia, other CIS countries, and Vietnam.
Jonathon Sedgwick, Ph.D., of AbbVie, emphasized the need for new therapies due to the large unmet need for people with neuropsychiatric disorders. Gábor Orbán of Richter highlighted the partnership's validation of their discovery platform.
The collaboration is based on a press release statement and reflects the ongoing commitment of both companies to address challenges in the neuropsychiatric field.
In other recent news, AbbVie has seen significant developments. The company's revenue forecasts remain steady, with estimates set at $55.6 billion for 2024, $59.5 billion for 2025, and $63.7 billion for 2026, despite a reduction in its projected 2024 aesthetics revenue to $5.5 billion and an adjustment in its 2024 profit outlook due to increased research and development costs. BofA Securities has raised AbbVie's stock target to $195, maintaining a Neutral rating, while Truist Securities increased the target to $215, upholding a Buy rating. Morgan Stanley (NYSE:MS) also kept its Overweight rating with a stable price target of $218.
In terms of product development, AbbVie has received FDA approval for VYALEV™, a 24-hour continuous infusion therapy for adults with advanced Parkinson's disease. The company has also submitted a Biologics License Application for the approval of Teliso-V, a potential new treatment for a subset of lung cancer patients. These are among the recent developments that contribute to the ongoing investor debate surrounding AbbVie's future growth prospects.
InvestingPro Insights
AbbVie's latest collaboration with Gedeon Richter Plc. aligns well with its position as a prominent player in the Biotechnology industry, as highlighted by InvestingPro Tips. This partnership could potentially contribute to AbbVie's future growth prospects, which is particularly relevant given that net income is expected to grow this year, according to another InvestingPro Tip.
The company's financial health appears robust, with a market capitalization of $334.44 billion and revenue of $55.0 billion over the last twelve months as of Q2 2024, as reported by InvestingPro Data. This strong financial position provides AbbVie with the resources to invest in R&D collaborations like the one announced with Gedeon Richter.
Investors should note that AbbVie has raised its dividend for 12 consecutive years, an InvestingPro Tip that underscores the company's commitment to shareholder returns. This consistent dividend growth, coupled with a current dividend yield of 3.3%, may appeal to income-focused investors.
It's worth mentioning that InvestingPro offers 12 additional tips for AbbVie, providing a more comprehensive analysis for investors interested in delving deeper into the company's prospects.
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