AbbVie (ABBV) is scheduled to report results of its second quarter before the market open on Friday, July 26, with a conference call scheduled for 9:00 am ET. What to watch for 1. PHASE 3 TRINITY: AbbVie shares are still trying to recover after the company’s late March announcement that it will not seek accelerated approval for Rova-T in third-line relapsed/refractory small cell lung cancer based on magnitude of effect across multiple parameters in this single-arm study. BMO Capital analyst Alex Arfaei lowered AbbVIe estimates following the Rova-T news in late March and reduced its price target to $80 from $95. 2. EARNINGS BOUNCE: Shares had a reprieve from the the Rova-T disappointment when AbbVie reported its first quarter earnings in late April. The drug company reported quarterly results ahead of expectations, while increasing EPS guidance for the year. Following its Q1 results in late-April, Piper Jaffray analyst Christopher Raymond said the report bodes well for the stock, which he expected to continue its recovery. Among the catalysts he sees coming later this year, Raymond listed full data from the Phase 3 TRINITY trial at ASCO in June, an NDA filing for upadacitinib, and the anticipated elagolix approval. He kept an Overweight rating on AbbVie shares with a price target of $138. 3. BIOSIMILARS THREATEN HUMIRA: Shares of AbbVie began to weaken again in June after an analyst’s cautionary commentary on the drug maker’s Humira franchise. Humira treats several forms of arthritis, psoriasis and Crohn’s disease. On May 30, Credit Suisse analyst Vamil Divan downgraded AbbVie to Underperform from Neutral as he was increasingly concerned about the longevity of its flagship product Humira. The analyst expected relatively rapid erosion of Humira sales in the EU following entry of multiple biosimilar versions of the drug in Q4. Divan also lowered his price target on the shares to $89 from $104.
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