AbbVie's stock tumbles 5% as FDA approves J&J's psoriasis rival Icotyde
AbbVie's stock tumbles 5% as FDA approves J&J's psoriasis rival Icotyde
AbbVie's stock tumbles 5% as FDA approves J&J's psoriasis rival Icotyde
AbbVie's stock fell sharply after the FDA approved a new rival treatment for plaque psoriasis. The company, already facing technical pressure, saw shares drop by nearly 5% following the announcement. The approval of Johnson & Johnson's Icotyde introduces fresh competition in the immunology sector.
On March 18, 2026, the FDA gave the green light to Icotyde, a once-daily oral pill for plaque psoriasis. Developed by Johnson & Johnson in partnership with Protagonist Therapeutics, the drug directly challenges AbbVie's Skyrizi, a leading injectable treatment in the same market. The news sent AbbVie's stock down by approximately 4.69%.
AbbVie's shares had already been under pressure, trading below key moving averages. The stock sits under its 20-day ($227.73), 50-day ($224.27), and just beneath its 200-day ($214.95) averages, signalling a seller-dominated trend.
Despite the new competition, analysts remain optimistic about Skyrizi's growth. Projections suggest a 23% increase in sales for the drug by the 2026 fiscal year. Meanwhile, AbbVie has set its earnings guidance for FY2026 between $14.37 and $14.57 per share.
In a separate move, the company announced a multi-year antibody discovery collaboration with Alloy Therapeutics. The partnership aims to bolster AbbVie's pipeline in immunology and other therapeutic areas.
The FDA's approval of Icotyde adds pressure to AbbVie's immunology franchise. While Skyrizi's sales are still expected to rise, the new oral treatment could reshape market dynamics. AbbVie's latest earnings forecast and research partnerships may help offset some of the competitive challenges ahead.