AbbVie Inc. (NYSE: ABBV) has received positive results from a late-stage trial of its experimental cancer drug, etentamig. The drug is being tested in patients with relapsed or refractory multiple myeloma, a type of blood cancer. The trial achieved its main goals and showed encouraging results.
About 74% of patients who received etentamig responded to the treatment, compared with 45.7% of patients who received standard treatments chosen by doctors. The drug also reduced the risk of the disease getting worse or the patient dying by 60%.
After 12 months, 87.9% of patients treated with etentamig were still alive, compared with 72% of patients receiving standard treatment.
These results are important for AbbVie because the company is trying to build new sources of growth after losing exclusivity for its former top-selling drug Humira. AbbVie is now depending more on newer medicines such as Skyrizi and Rinvoq, while also expanding into areas such as cancer treatment.
A Bigger Opportunity in Cancer Treatment
The positive results could give AbbVie a strong opportunity to grow its business in oncology, or cancer treatment.
A 74% response rate and a 60% reduction in the risk of disease progression or death are significant results. This is especially important because the patients in the study had difficult-to-treat multiple myeloma and had already received a median of three previous treatments.
Etentamig may also have an advantage because it could work alongside CAR-T treatments rather than directly replacing them. Citi analyst Geoffrey Meacham said the drug could be particularly useful for patients who have already received CAR-T therapy.
Another possible advantage is how the treatment is given. CAR-T therapy can involve complicated procedures and treatment arrangements. Etentamig, on the other hand, can be given monthly and may be more easily available at different treatment centers.
If the drug is eventually approved, it could give AbbVie another source of revenue and help the company become less dependent on its older products. The results also show that AbbVie’s investments in cancer treatment are starting to produce promising clinical results.
Challenges Still Remain
Even though the trial results are positive, etentamig is still not generating revenue for AbbVie. The company must first complete the regulatory approval process before the drug can reach the market.
Investors also do not yet have the full details of the trial. More data are expected to be presented at the International Myeloma Society meeting later this month. These results should give investors a better understanding of the drug’s benefits and risks.
Competition is another challenge. The multiple myeloma market already has several established treatments, including CAR-T therapies that can produce strong results.
If etentamig is mainly used after CAR-T treatment, rather than replacing it, the drug’s overall market could be smaller. Doctors may continue to choose other treatments for patients who are suitable for them.
Safety is another factor that needs to be considered. Etentamig activates T-cells, which can sometimes cause cytokine release syndrome, an inflammatory reaction in the body. Reuters reported that this side effect occurred in 28.3% of patients who received the dose-escalation treatment.
Although relatively few patients stopped treatment because of side effects, safety will still be closely watched by regulators, doctors and insurance companies.
What It Means for Investors
The successful trial is good news for AbbVie, but it does not completely change the company’s investment story.
Etentamig could become an important cancer treatment and provide AbbVie with another source of future growth. However, the drug still needs regulatory approval and must compete with existing treatments.
For the near and medium term, AbbVie’s growth will still depend heavily on the performance of Skyrizi and Rinvoq. The company’s ability to strengthen its pipeline and make additional deals will also be important for its long-term growth into the 2030s.
Overall, the etentamig results remove some uncertainty about the drug’s potential. They strengthen AbbVie’s long-term pipeline and its move into oncology, but they are not enough on their own to completely change the company’s overall investment outlook.
While AbbVie remains a potential investment opportunity, some AI stocks may offer higher growth potential with lower downside risk.
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