Why AbbVie Stock Is Jumping Today

Key Points

• AbbVie settled litigation with companies seeking to make generic versions of Rinvoq.

• Assuming Rinvoq secures pediatric exclusivity, the drug won't face generic competition until 2037 at the earliest.

• 10 stocks we like better than AbbVie ›

Shares of AbbVie (NYSE: ABBV) were jumping 4.2% higher as of 11:37 a.m. ET on Thursday. The nice gain came after the big drugmaker revealed that it had settled litigation with all companies that have filed abbreviated new drug applications (ANDAs) with the U.S. Food and Drug Administration (FDA) to make generic versions of AbbVie's autoimmune disease drug Rinvoq.

AbbVie currently awaits pediatric exclusivity for Rinvoq. If this is granted, the company doesn't expect generic competition for the drug before April 2037 in the U.S.

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Why this is great news for AbbVie

Rinvoq has quickly risen to become one of AbbVie's top blockbuster drugs, raking in $3.75 billion in the first half of 2025. The drug continues to enjoy strong momentum in treating ulcerative colitis and Crohn's disease. Although Rinvoq is playing second fiddle to Skyrizi, another autoimmune disease drug in AbbVie's lineup, it's an important component of the company's growth strategy.

Had any of AbbVie's rivals been able to launch generic versions of Rinvoq earlier than expected, the big drugmaker's long-term revenue and earnings growth would have been negatively affected. With that possibility off the table, the risk for Rinvoq (and, by extension, AbbVie) has been lowered.

Is AbbVie stock a buy?

I think the latest news for Rinvoq adds to the overall positive investing premise for AbbVie. The company should have solid growth prospects through the rest of the decade. It has a promising pipeline. AbbVie is also a Dividend King, a group made up of companies that have raised dividends for 50+ years, offering an attractive dividend yield of around 3%. This stock remains one of my favorites in the healthcare sector.

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Keith Speights has positions in AbbVie. The Motley Fool has positions in and recommends AbbVie. The Motley Fool has a disclosure policy.