Cantor Fitzgerald Lowers AbbVie (ABBV) Target, Sees Weak Pharma Catalyst Ahead

AbbVie Inc. (NYSE:ABBV) is included among the 15 Best Cheap Dividend Stocks to Buy.

On April 8, Cantor Fitzgerald lowered its price recommendation on AbbVie Inc. (NYSE:ABBV) to $240 from $250. It kept an Overweight rating ahead of the Q1 report. The firm said it does not expect the Q1 earnings season to “dramatically reinvigorate” the large-cap pharma sector. It still sees a “relatively favorable setup” for AbbVie, noting that investor sentiment is “as bad as we can remember in more than two years.”

On April 8, Reuters reported that AbbVie filed a lawsuit against the U.S. government, seeking clearer guidance on patients eligible for a drug discount program. Under the 340B program, drugmakers must provide medicines at significantly reduced prices to healthcare providers serving low-income populations.AbbVie argued that current guidance leaves room for misuse. It said hospitals and clinics can claim discounts for patients with limited or unrelated contact, or even seek multiple discounts for the same prescription.

The company stated that these gaps have turned a program meant for the “safety-net” into a discretionary revenue source for hospitals.AbbVie is pushing for a stricter definition. It wants the 340B discount to apply only when the provider is directly managing the patient’s condition and has seen the patient for a thorough medical visit within the past 12 months. The move adds to the ongoing dispute between drugmakers and healthcare providers over the multi-billion-dollar 340B program.

AbbVie Inc. (NYSE:ABBV) is a global research-based biopharmaceutical company. It focuses on developing, manufacturing, and selling therapies across areas such as immunology, oncology, aesthetics, neuroscience, and eye care.

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