AbbVie Inc (NYSE: ABBV) is having an overwhelmingly rough start to the trading session this morning, and for good reason. Legendary short-side reporters at Citron have picked the company as a target. Of course, the news led to fear among investors, sending the stock screaming for the bottom. Today, we’ll talk about:
- The tweet from Citron;
- what we’re seeing from ABBV stock as a result; and
- what we’ll be watching for ahead.
Citron Calls ABBV The Next Great Drug Short!
As mentioned above, AbbVie is having an incredibly rough start to the trading session this morning after it found itself in the cross hairs of Citron researchers. In a tweet issued early this morning, Citron had the following to offer:
$ABBV the next great drug short. TGT price $60 Gottlieb’s comments for biosimilars and the removal of safe harbor is a DIRECT hit on Abbvie’s abuse of Humira. Citron to release a series of reports detailing the Dirty Money. POTUS, AMZN, and now FDA on the case $60 in 12 months
— Citron Research (@CitronResearch) July 19, 2018
Essentially, Citron is pointing to the fact that it believes that ABBV is abusing the medical community through hefty pricing on its drug known as Humira. Humira is incredibly important to the revenue seen at AbbVie, and the removal of safe harbor will force declines in pricing. Therefore, ABBV will likely see great reductions in revenue.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In this particular case, the news proved to be overwhelmingly bad for AbbVie. Citron Research has a great name in the industry by providing compelling research that is very well put together. The company is very wrong with its predictions, and if it’s attacking ABBV, it’s doing so for a reason. So, it’s no surprise to see that investors are concerned, sending the stock spiraling for the bottom. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:09), ABBV is trading at $89.51 per share after a loss of $4.89 per share or 5.18% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on ABBV. In particular, we’re interested in digging into the coming reports from Citron. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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