New York, January 13, 2026, 14:45 ET — Regular session
- AbbVie shares slipped roughly 0.1% in afternoon trading following the drugmaker’s announcement of a U.S. pricing agreement linked to tariff relief
- The company also advanced in oncology and manufacturing, securing a China biotech licensing deal and purchasing a site in Arizona
- Coming next: management comments at the J.P. Morgan Healthcare Conference on Jan. 14, followed by earnings on Feb. 4
AbbVie shares slipped 0.1% to $219.83 Tuesday afternoon after the drugmaker announced a three-year deal with the Trump administration. The pact aims to lower certain drug prices in return for exemptions from tariffs and future pricing rules.
The deal arrives amid investor attempts to figure out how “lower prices” might impact big pharma in 2026 — and if Washington’s efforts will become a serious drag on margins or just a tolerable hit. It also brings trade policy into the pricing debate, a spot few shareholders anticipated focusing on this early in the year.
AbbVie remains deep in a lengthy reset, relying on newer drugs to make up for declines in its older blockbusters. A pricing deal affecting major channels could shake up guidance, despite the company’s claims of securing tariff protections.
AbbVie announced it will offer reduced prices for Medicaid, the U.S. program serving low-income individuals, while committing $100 billion over the next ten years to U.S. research and development, including manufacturing. The company also intends to boost direct-to-patient sales via a TrumpRx portal, featuring drugs like Alphagan, Combigan, Humira, and Synthroid. Additional details remain confidential, AbbVie said. (Reuters)
Chief Executive Robert A. Michael described the deal as a direct answer to the administration’s demands, calling it a move to “move beyond policies that harm American innovation,” according to a company statement. (AbbVie News Center)
That same morning, AbbVie extended its deal-making beyond Washington. It struck an exclusive licensing deal with China’s RemeGen for RC148, an experimental cancer drug targeting PD-1 and VEGF—key players in tumor growth and blood vessel formation. AbbVie secured rights outside Greater China. The company will shell out $650 million upfront, with the potential for $4.95 billion in milestone payments, plus tiered royalties. Oncology exec Daejin Abidoye highlighted the combination strategy’s potential to “identify meaningful options for patients.” (AbbVie News Center)
UBS stuck with a Neutral rating and a $240 price target on AbbVie following the RC148 deal. Analyst Michael Yee noted the upfront payment should help AbbVie “get into the game and up and running” as it gears up for U.S. trials. UBS highlighted that other pharma giants like Bristol Myers Squibb, Pfizer, and Merck have recently shelled out for comparable PD-1/VEGF programs. (Investing)
AbbVie has inked a definitive deal with West Pharmaceutical Services to acquire a device manufacturing plant in Tempe, Arizona, along with related intellectual property, aiming to expand its drug-delivery capabilities. The company plans to add around 200 jobs at the facility and invest over $175 million to upgrade it. The acquisition is expected to close by mid-2026. (AbbVie News Center)
The market remains without the concrete figures that typically steer a stock’s direction. AbbVie hasn’t revealed the extent of the Medicaid cuts or the growth potential of the TrumpRx channel. Plus, drug development plays like RC148 can stumble in late-stage trials despite promising early results.
AbbVie’s management is set to share new updates at the J.P. Morgan Healthcare Conference on Wednesday, Jan. 14, at 10:15 a.m. Central time. Investors will get another look when the company releases its full-year and fourth-quarter 2025 results on Feb. 4, before the market opens. (AbbVie News Center)
