NEW YORK–(BUSINESS WIRE)–Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, reminds investors that a class action lawsuit has been filed against AbbVie, Inc. (“AbbVie” or the “Company ”) (NYSE: ABBV) in the United States District Court for the Northern District of Illinois on behalf of all persons and entities who purchased or otherwise acquired AbbVie securities between April 30, 2021 and August 31 2021, both dates inclusive (the “Class Period”). Investors have until June 6, 2022 to ask the Court to be named lead plaintiff in the lawsuit.
Click on here to get in on the action.
AbbVie is one of the largest pharmaceutical companies in the world. The company’s revenues will come under significant pressure in the coming years when its top-selling drug, Humira, loses patent protection in 2023. As a result, AbbVie’s future revenues and profits are largely dependent on its ability to develop new revenue streams to offset Humira’s lost sales. Rinvoq, an anti-inflammatory drug made by AbbVie and used to treat rheumatoid arthritis (RA) and other conditions by inhibiting Janus kinase (JAK) enzymes, has been touted as one such drug. Rinvoq was originally approved in the United States to treat moderate to severe rheumatoid arthritis only. However, AbbVie was actively pursuing additional treatment indications and in 2020 applied to the US Food and Drug Administration (FDA) to approve Rinvoq for the treatment of several other conditions.
As relevant here, Rinvoq is similar to other JAK inhibitor drugs, including Xeljanz, made by Pfizer Inc. When the FDA approved Xeljanz in 2012 for the treatment of rheumatoid arthritis, it took a safety trial additional to assess the risk of Xeljanz triggering certain serious side effects. effects. Beginning in February 2019, the FDA repeatedly warned the public that safety testing indicated that using Xeljanz could lead to serious heart problems, cancer, and other adverse events. Notwithstanding the similarities between Rinvoq and Xeljanz, during the class period the defendants assured investors that Rinvoq was significantly safer than Xeljanz and not subject to the same regulatory risks.
However, investors began to uncover the truth about Rinvoq’s significant risks on June 25, 2021, when AbbVie revealed that the FDA was delaying its review of expanded treatment applications for Rinvoq due to safety concerns associated with Xeljanz. On this news, AbbVie’s common stock price declined $1.76 per share, or approximately 1.5%, from a close of $114.74 per share on June 24, 2021 to $112.98. per share on June 25, 2021.
Then, on September 1, 2021, the FDA announced that the final results of the Xeljanz safety trial established an increased risk of serious adverse events, even with low doses of Xeljanz. As a result, the FDA has determined that it will require new and updated warnings for Xeljanz and Rinvoq because Rinvoq “shares[s] similar mechanisms of action with Xeljanz” and “may have similar risks as seen in the Xeljanz safety trial. The FDA has also indicated that it will further limit the approved indications for Rinvoq due to these safety concerns. AbbVie common stock fell $8.51 per share, or more than 7%, from a close of $120.78 per share on August 31, 2021 to $112.27 per share on September 1, 2021.
After the appeal period, on December 3, 2021, AbbVie announced that the FDA had updated the Rinvoq label to require additional safety warnings and limit the marketing of Rinvoq to use only after treatment failure with other medications. On January 11, 2022, the defendants admitted that these Rinvoq label changes would negatively impact sales, causing the company to reduce its long-term forecast for Rinvoq sales in 2025.
The Complaint alleges that, throughout the Class Period, the Defendants made materially false and/or misleading statements regarding the company’s business and operations. Specifically, defendants misrepresented and/or failed to disclose that: (1) the safety concerns regarding Xeljanz extended to Rinvoq and other JAK inhibitors; (2) as a result, it was likely that the FDA would require additional safety warnings for Rinvoq and delay approval of additional treatment indications for Rinvoq; and (3) as a result, defendants’ statements about the company’s business, operations and prospects lacked a reasonable basis. Due to the defendants’ wrongful acts and omissions and the significant decline in the market value of AbbVie’s securities, AbbVie’s investors suffered substantial damages.
If you have purchased or otherwise acquired AbbVie shares and suffered a loss, are a long-term shareholder, have information, want to know more about these claims, or have questions about this announcement or your rights or interests in these questions, please contact Brandon Walker or Alexandra Raymond by email at [email protected], by phone at (212) 355-4648, or by by filling out this contact form. There is no cost or obligation for you.
About Bragar Eagel & Squire, PC:
Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivatives and other complex litigation before state and federal courts across the country. For more information about the company, please visit www.bespc.com. Lawyer advertisement. Prior results do not guarantee similar results.