AbbVie and Applied Materials Rose on September 28
AbbVie (ABBV), which is a pharmaceutical company that discovers, develops, and markets biopharmaceuticals and small molecule drugs, was the S&P 500’s second-highest gainer on September 28, 2017.
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After falling for three consecutive trading days, AbbVie’s prices strengthened on Thursday. The market sentiment improved because AbbVie reached an agreement with Amgen (AMGN) on the Humira patent dispute. Humira, which is AbbVie’s rheumatoid arthritis drug, was the highest selling prescription medicine in the world in 2Q17 with sales of $4.7 billion. Amgen produced a cheaper biosimilar version of AbbVie’s Humira that lead to a patent dispute. According to the settlement, Amgen will delay the launch of a biosimilar version of Humira until January 31, 2023. Amgen will pay an undisclosed royalty on the sales of Humira’s biosimilar version. The settlement improved the market sentiment and pushed the stock higher.
On September 28, AbbVie rose 5% and closed the day at $88.96. Amgen rose to $185.46—a gain of 0.31%.
Applied Materials (AMAT), which provides material engineering solutions for semiconductors, panel display, and solar photovoltaics–based industries, rose for the second consecutive trading day.
On Wednesday, the stock rose to the highest levels in 17 years after the announcement of a strong outlook until 2020. Applied Materials expects earnings per share of $5.08 in 2020. The strong trends in the market growth for big data and artificial intelligence led the company to announce an upbeat outlook. The strong industry outlook amid an increase in the application of semiconductors along with the upbeat outlook produced by Micron Technology (MU) strengthened semiconductor stocks. The stock continued to move higher on Thursday amid JPMorgan Chase’s strong outlook. On September 28, Applied Materials rose 3.6% and closed the day at $50.62.
In the next part, we’ll discuss how Eastman Chemical (EMN) performed on September 28.