AbbVie (NYSE:ABBV) shares advanced more than 3% after the company announced it reached settlements with all generic manufacturers that had filed for approvals to produce versions of its RINVOQ medication, securing patent protection through 2037.

The settlement and licensing agreements, revealed on September 11, 2025, confirm that no generic upadacitinib tablets (sold under the brand name RINVOQ) will be available in the U.S. before April 2037, contingent on pediatric exclusivity being granted. Standard acceleration clauses apply to these agreements.

This outcome significantly extends the commercial exclusivity period for one of AbbVie’s flagship drugs. Analysts had previously expected patent protection to expire in 2032, so the settlement adds roughly five more years of market exclusivity.

Wells Fargo analyst Mohit Bansal called the settlement a “big win” for AbbVie, highlighting that consensus models had anticipated a 2032 patent expiration. He estimates the added protection could contribute between $11 and $24 per share in discounted cash flow value.

Bansal also noted that AbbVie’s other major drug, Skyrizi, might achieve a similar settlement, potentially enhancing the company’s long-term prospects. He added that AbbVie “represents a unique investment opportunity in the pharmaceutical sector due to its extended growth runway.”

RINVOQ remains a cornerstone of AbbVie’s immunology portfolio, approved to treat multiple inflammatory diseases, including rheumatoid arthritis, psoriatic arthritis, and ulcerative colitis.

AbbVie stock price

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