Did Pfizer Just Trip Up AbbVie's Chances For A New Arthritis Drug?
AbbVie stock plunged Wednesday after the Food and Drug Administration requested additional information to assess the benefit of potential blockbuster drug Rinvoq. X  Rinvoq is already approved as a rheumatoid arthritis treatment. But AbbVie (ABBV) is hoping the FDA will also approve the drug in psoriatic arthritis and eczema. Before that happens, however, the agency asked for additional information to assess the risk-benefit profile of Rinvoq. This pushes potential approval in psoriatic arthritis out three months to late in the second quarter, the company said in a news release. AbbVie says it already responded to the arthritis request and now plans to compile the information in eczema treatment. The news clearly didn't sit well with investors, Piper Sandler analyst Christopher Raymond said in a report to clients. But he remained bullish on AbbVie stock, noting the company won't need to perform additional testing on Rinvoq for these potential approvals. On the stock market today, AbbVie stock skidded 5.2%, to 105.04. AbbVie Stock Dives On FDA Request  The FDA request likely stems from concerns around the safety of Rinvoq's drug class. These drugs, janus kinase inhibitors  or JAK inhibitors  hold a reputation for being "somewhat controversial," Mizuho Securities analyst Vamil Divan said in a report to clients. In February, the FDA said treatment with Pfizer's (PFE) JAK inhibitor, Xeljanz, might increase the risk of heart-related problems and cancer. The study compared Xeljanz to older drugs known as tumor necrosis factor inhibitors. "We are now wondering if the FDA may be looking at some of these recent Xeljanz issues as a potential class effect," Divan said. He notes the label for Rinvoq warns against the risk of serious infections and malignancies, as well as blood clots. Divan kept his buy rating and 126 price target on AbbVie stock. AbbVie disclosed on its recent quarterly earnings conference call that Rinvoq hasn't had the same safety concerns as Xeljanz, Piper Sandler's Raymond said. He maintained his overweight rating and 120 price target on AbbVie stock. Follow Allison Gatlin on Twitter at @IBD_AGatlin. Best Growth Stocks To Buy And Watch: See Updates To IBD Stock Lists  Profit From Short-Term Trends With SwingTrader  Watch IBD's Investing Strategies Show For Actionable Market Insights