AbbVie (ABBV) Stock Drops 5% After FDA Approves J&J’s Competing Psoriasis Drug

TLDR

• The FDA approved Johnson & Johnson’s new plaque psoriasis pill, Icotyde, developed with Protagonist Therapeutics (PTGX), sending ABBV down ~4.69%
• Icotyde is a once-daily oral treatment that could directly compete with AbbVie’s Skyrizi in the immunology market
• Despite the new rival, analysts project Skyrizi will still grow 23% in sales by FY2026
• AbbVie trades below its SMA-20 ($227.73), SMA-50 ($224.27), and just under its SMA-200 ($214.95), keeping sellers in control
• AbbVie set FY2026 EPS guidance at $14.37–$14.57, and also announced a new multi-year antibody discovery partnership with Alloy Therapeutics

AbbVie (ABBV) fell roughly 4.69% on Tuesday after the FDA gave the green light to Johnson & Johnson’s (JNJ) new plaque psoriasis treatment, Icotyde. The approval rattled investors given Skyrizi’s central role in AbbVie’s post-Humira growth story.

AbbVie Inc., ABBV

Icotyde, developed by J&J in collaboration with Protagonist Therapeutics (PTGX), is a once-daily oral pill for plaque psoriasis. That puts it in direct competition with Skyrizi, AbbVie’s top immunology drug and one of its most important revenue drivers.

That said, analysts aren’t writing Skyrizi off just yet. The drug’s efficacy profile and dosing regimen are seen as potential advantages, and projections still point to a 23% sales increase for Skyrizi by FY2026.

The stock closed around $212.50 after opening lower than the prior session’s close of $218.60. The day’s range ran from $209.42 to $218.60, reflecting heavy selling pressure from the open.

Technical Picture Turns Bearish

On the charts, ABBV sits below its SMA-20 ($227.73), SMA-50 ($224.27), and is just under its SMA-200 ($214.95). That’s a clean sweep of the key moving averages — and not in a good way.

Both daily and weekly RSI readings are in sell territory. CCI and BBP indicators point to oversold and negative momentum. The ADX is weak, suggesting no strong trend is forming, and the MACD is neutral.

The nearest support level to watch is $210.83. A break below that could open the door to more downside. Resistance sits at the Ichimoku Kijun line of $227.58.

One range-trade setup is being watched between $210.83 and $215.22, with some traders eyeing a potential rebound if price compresses around the lower end of that band.

The stock’s SMA-200 at $214.95 may offer some dynamic support in the near term, but the weight of evidence still leans bearish.

Humira Hangover and Aesthetics Drag

The competitive threat from Icotyde lands at an already tricky time for AbbVie. The company is still managing the fallout from Humira’s loss of exclusivity, and its aesthetics segment — including Juvederm — continues to face declining sales.

Some institutional holders have trimmed their ABBV positions recently, a move that reflects the shifting sentiment around the stock. Insider activity has also leaned one way — two selling transactions in the past three months, with no buying.

On the positive side, AbbVie announced a multi-year strategic partnership with Alloy Therapeutics to develop an advanced antibody discovery platform. The deal includes upfront payments and milestone-based commitments, and is seen as a sign of continued R&D investment.

AbbVie also issued FY2026 EPS guidance of $14.37–$14.57, which some view as a sign that management still believes in the company’s underlying trajectory.

The analyst consensus target price sits at $251.44, with a recommendation score of 2.2 — a moderate buy. Institutional ownership remains high at 74.71%.

ABBV’s GF Value estimate stands at $198.80, with the stock currently assessed as fairly valued at current levels.

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