Citron Research Explains Why AbbVie is on its way to $60.

The changes to drug pricing are in the early innings and AbbVie just got up to bat.

Last week Citron tweeted about AbbVie being the “next great drug short” based on recent comments made by FDA Chief Scott Gottlieb about biosimilars and the removal of the safe harbor act.  Citron contends that if the government is going to act accordingly and stand by their words than AbbVie stock will trade at $60.

What makes AbbVie a short is not the fact that they are one of the worst abusers of the system for years, as Citron will explain in further stories, including pay for delay and double-digit price increases.  This is well known and has been.

AbbVie’s egregious pricing practices are well documented.  Blue Cross Blue Shield ranks ABBV #1 in its list of the “10 worst drug price offenders”.

Everybody knows that AbbVie (ABBV) is a story of Humira.  It’s a story of the world’s highest selling drug that has been on market for 20 years now without competition and unfettered pricing power.  It’s a story of $18 Billion in estimated sales for 2018, pay for delay cases that extend the patent exclusivity to 2023 (in the US), and a slow ramp of biosimilar due to interchangeability issues and the “rebate trap”.

What makes AbbVie a short is that there finally seems to be changes coming to the system in two words, Biosimilars and Rebates.