By Sam Boughedda
Investing.com — Shares of AbbVie Inc (NYSE:ABBV) rose 1.8% Friday after the company's arthritis drug was approved by the U.S. Food and Drug Administration.
The drug, named Rinvoq, has been approved to treat adults with active psoriatic arthritis who have had an insufficient response or intolerance to tumor necrosis factor (TNF) blockers.
AbbVie said the approval was backed by two phase 3 clinical studies with the drug showing efficacy across multiple measures of disease activity.
Rinvoq is said to improve joint pain, swelling and stiffness, as well as fatigue. The approval is the second for the drug after it was approved for rheumatoid arthritis in 2019.
"This new approval underscores our mission to deliver a portfolio of therapies that can help more people with rheumatic diseases achieve disease control," said Michael Severino, vice chairman and president, AbbVie.
Reacting to the announcement, Piper Sandler analyst kept an overweight rating and $160 price target on the stock but told investors in a note that Rinvoq was approved with a "better than expected" atopic dermatitis label.
"With what seems to be benign warning language and flexibility on dosing, we think the drug is now primed to capitalize on what has been largely positive dermatologist survey feedback regarding this opportunity," explained the analyst.