Pharmaceutical giant AbbVie (NYSE: ABBV) has built a good business on its long-running exclusivity of the world’s top-selling drug, Humira, used for treating arthritis. However, Humira will lose its patent protection in 2023, and a handful of biosimilars — that is, “copy cat” versions of the drug made by competitors when a patent expires — will enter the market.
Competition for Humira may seem scary since it represents more than a third of AbbVie’s sales. But before investors panic, let’s look at why things may not be as bad as they seem.