AbbVie Gains as SKYRIZI Wins Key Canadian Reimbursement Nod
The recommendation from Canada's drug agency expands market access for the blockbuster immunology drug, a critical pillar in AbbVie's post-Humira growth strategy.
AbbVie Inc. (NYSE: ABBV) received a significant boost for its blockbuster drug SKYRIZI on Friday after Canada's national drug agency recommended the treatment for public reimbursement for patients with ulcerative colitis, paving the way for expanded access in a key international market.
The positive recommendation from Canada’s Drug Agency (CDA-AMC) is for adults with moderately to severely active ulcerative colitis who have not responded adequately to other treatments. The decision is a critical step for AbbVie, which is relying on SKYRIZI and its other immunology flagship, RINVOQ, to drive growth following the patent expiration of its former mega-blockbuster, Humira.
Shares of the North Chicago-based pharmaceutical giant were trading near $227.66 in Friday morning's session. The company, which has a market capitalization of approximately $402 billion, has seen its stock trade above its 200-day moving average, signaling positive long-term momentum.
SKYRIZI is a cornerstone of AbbVie’s strategy to dominate the immunology market. The drug, an IL-23 inhibitor, has seen meteoric growth, with global net revenues hitting $4.7 billion in the third quarter of 2025, a 46% increase on an operational basis. AbbVie has raised its full-year sales forecast for the drug to approximately $17.3 billion, underscoring its confidence in its performance.
"This is a testament to the mutual commitment of AbbVie and the Health Authorities to improve patient access to innovative medicines for inflammatory bowel disease," said Rami Fayed, Vice President and General Manager of AbbVie Canada, in a statement released Friday. The company also noted it has concluded a letter of intent with the pan-Canadian Pharmaceutical Alliance (pCPA), which negotiates drug pricing on behalf of public drug plans.
The Canadian market for ulcerative colitis treatments is substantial, with an estimated 120,000 Canadians living with the inflammatory bowel disease. This approval opens a new revenue channel and solidifies SKYRIZI's position in a competitive field.
The market for ulcerative colitis and other immunology treatments is fiercely contested, with major players including Johnson & Johnson, Pfizer, and Eli Lilly. However, SKYRIZI's strong clinical data and expanding list of approved indications have allowed it to capture significant market share. The drug was first approved for the condition in the U.S. by the Food and Drug Administration in June 2024.
Analysts have been bullish on the long-term prospects of AbbVie's new immunology duo. Some projections suggest that combined sales of SKYRIZI and RINVOQ could surpass $31 billion by 2027, effectively replacing the revenue lost from Humira's patent cliff. Wall Street's consensus 12-month price target for ABBV stock sits at $243.55, reflecting optimism about the company's growth trajectory and pipeline.
The recommendation in Canada is the latest in a series of positive developments for AbbVie. The company recently reported third-quarter earnings that beat Wall Street expectations and announced a 5.8% increase in its quarterly dividend, reinforcing its commitment to shareholder returns. This latest regulatory milestone in Canada further de-risks SKYRIZI's growth path and strengthens AbbVie's position as a leader in immunology.