AbbVie Inc (NYSE: ABBV) is having a relatively strong start to the trading session this morning after announcing that it has submitted a marketing authorization application to the European Medicines Agency. The company also announced a “Dutch auction” tender offer that will allow the company to purchase shares from current shareholders. Of course, the news led to excitement, sending the stock toward the sky. Today, we’ll talk about:
- The EMA application and tender offer;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
ABBV Releases News
As mentioned above, AbbVie is having a relatively strong start to the trading session in the pre-market hours this morning after making multiple announcements. In the first press release issued this morning, the company announced that it has submitted a marketing authorization application (MAA) to the European Medicines Agency (EMA). The application surrounded risankizumab. Risankizumab is an investigational interleukin-23 (IL-23) inhibitor. The treatment is being evaluated for the treatment of patients with moderate to severe plaque psoriasis. In a statement, Michael Severino, M.D., Executive Vice President of Research and Development and Chief Scientific Officer at ABBV, had the following to offer:
The risankizumab submission to the EMA marks another significant milestone in helping to advance treatment for people living with immune-mediated diseases… Many psoriasis patients are still battling this disease and the impact it has on their lives. Risankizumab has the potential to be an important new treatment option and we look forward to working with the EMA throughout the review process.
In a second press release issued early this morning, the company announced that it has commenced a modified “Dutch auction” tender offer. Under the tender offer, the company plans to purchase up to $7.5 billion of its common stock at a price in the range between $99 per share and $114 per share. Under the offer, ABBV shareholders will have the ability to tender all or a portion of their shares at a price specified by the holder as long as it is within this range. At the expiration of the offer, the company will determine the lowest price within the range of prices specified above that allows the company to purchase up to an aggregate of $7.5 billion of its own common stock.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that it’s important to keep a close eye on the news. In this particular case, the news proved to be overwhelmingly positive. Not only has AbbVie submitted an application to the EMA in hopes of marketing a treatment in Europe, but it is so confident in its growth that it is working to buy billions of its own common stock back from stockholders. So, it’s no surprise that investors are excited and sending the stock toward the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (8:58), ABBV is trading at $101.95 per share after a gain of $5.40 per share (5.59%) thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
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 following the progress of the Dutch auction tender offer as well as the application with the EMA. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!