AbbVie

AbbVie. An American multinational pharmaceutical company headquartered in North Chicago, Illinois, it was established in 2013 following a separation from its parent company, Abbott Laboratories. The spin-off created a focused biopharmaceutical entity, with AbbVie inheriting Abbott's legacy portfolio of proprietary drugs. Led by longtime Abbott executive Richard A. Gonzalez, the company quickly became a major player in the industry, known for its blockbuster immunology and oncology treatments.

History

The company's origins are directly tied to the strategic decision by Abbott Laboratories to separate its research-based pharmaceuticals business from its diversified medical products operations. This corporate action was announced in October 2011 and completed on January 1, 2013, creating two publicly traded companies. The new entity, named AbbVie, began trading independently on the New York Stock Exchange under the ticker symbol "ABBV". The separation allowed the management team, under the leadership of Richard A. Gonzalez, to pursue a more focused research and commercial strategy. A significant chapter in its corporate history was the acquisition of Pharmacyclics in 2015 for approximately $21 billion, gaining full rights to the oncology drug Imbruvica. In 2020, AbbVie completed one of the largest pharmaceutical mergers in history with its $63 billion acquisition of Allergan plc, expanding its portfolio into areas like medical aesthetics and neuroscience.

Business and products

The company's commercial portfolio is anchored by several blockbuster drugs across key therapeutic areas. Its flagship product is the anti-inflammatory drug Humira (adalimumab), long the world's top-selling pharmaceutical, which treats conditions like rheumatoid arthritis, psoriasis, and Crohn's disease. In oncology, its major products include Imbruvica (ibrutinib) for blood cancers and Venclexta (venetoclax). Following the patent expiration of Humira, the company has successfully launched next-generation immunology drugs Skyrizi (risankizumab) and Rinvoq (upadacitinib). The acquisition of Allergan plc added leading Botox (onabotulinumtoxinA) and other products in medical aesthetics, alongside established brands in neuroscience like Vraylar (cariprazine). The company markets its products globally, with significant operations in Europe, Japan, and emerging markets.

Research and development

The company maintains a substantial research and development enterprise focused on discovering and developing new therapies. Its R&D strategy targets several core therapeutic areas, including immunology, oncology, neuroscience, ophthalmology, and virology. Key research facilities are located at its headquarters in North Chicago, Illinois, and in South San Francisco, California, within the San Francisco Bay Area biotech hub. The company frequently engages in strategic collaborations and licensing agreements with academic institutions and biotechnology firms, such as Genmab and Calico Life Sciences. A major focus has been advancing its immunology pipeline to follow Humira, resulting in the successful development and global launch of Skyrizi and Rinvoq. Its oncology research efforts continue to explore new indications for Imbruvica and develop novel agents across various solid tumor and hematologic malignancy types.

Legal and regulatory issues

The company has navigated numerous significant legal and regulatory challenges. A primary focus for years involved defending the extensive patent estate surrounding its drug Humira, engaging in litigation with several manufacturers of biosimilar drugs, including Amgen and Boehringer Ingelheim. These legal strategies successfully delayed biosimilar competition in the United States until 2023. The company has also faced investigations and settlements related to its marketing practices; in 2020, it agreed to pay $24 million to settle U.S. Department of Justice allegations concerning the use of a charity to cover Medicare patient copays. Furthermore, the safety profiles of some of its drugs, such as AndroGel and the antipsychotic Risperdal, have been the subject of thousands of product liability lawsuits from patients alleging severe side effects.

Corporate affairs

The company is led by Chairman and Chief Executive Officer Richard A. Gonzalez, who has held the position since its inception. Its corporate headquarters are located in North Chicago, Illinois, on a campus originally developed by Abbott Laboratories. The company is a constituent of the S&P 500 and the Dow Jones Industrial Average, reflecting its significant market capitalization. It engages in extensive philanthropic efforts, primarily through the AbbVie Foundation, which focuses on community health, education, and employee matching gifts. The company's operations and pricing strategies, particularly for Humira, have frequently drawn scrutiny from policymakers in the U.S. Congress and patient advocacy groups concerned about the cost of prescription drugs. Following the acquisition of Allergan plc, it also assumed responsibility for the Allergan Foundation's charitable activities.