Terence Flynn, an analyst from Morgan Stanley, maintained the Buy rating on AbbVie (ABBV – Research Report). The associated price target remains the same with $250.00.
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Terence Flynn’s rating is based on the recent accelerated approval granted by the FDA for AbbVie’s Emrelis (telisotuzumab vedotin) for treating non-squamous non-small cell lung cancer (NSCLC) with high c-Met protein overexpression. This approval is significant as it aligns with AbbVie’s expectations and reflects the FDA’s continued operations under the new administration. The approval was supported by the Phase 2 LUMINOSITY trial results, which showed promising overall response rates and median overall survival in patients with high and intermediate c-Met expression.
Furthermore, the FDA’s approval of the Roche VENTANA MET (SP44) RxDx Assay as a companion diagnostic enhances the treatment’s applicability by identifying eligible patients. With NSCLC accounting for a large percentage of lung cancers and c-Met overexpression linked to poor prognosis, the market potential for Emrelis is substantial. AbbVie’s ongoing development of related therapies, such as Temab-A, and the projected sales growth for Emrelis further support the Buy rating.
In another report released on April 29, Guggenheim also maintained a Buy rating on the stock with a $216.00 price target.