The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK (Trefis) -- Abbott Labs (ABT) recently announced a $1.35 billion deal with Belgian drug developer Galapagos to develop and commercialize an oral JAK1 inhibitor in Phase II development to treat autoimmune diseases, including rheumatoid arthritis.
The company has also entered a deal with University of North Texas science center for human identification testing. The deals will strengthen Abbott's foothold in autoimmune and diagnostics market. Our price estimate for Abbott Labs stands at $62, implying a premium of about 10% to the current market price.
See Full Analysis for Abbott Labs here.Abbott's Humira, one of the world's largest selling drugs and a leader for treatment of rheumatoid arthritis, is likely to face competition from other oral JAK inhibitors including Pfizer's tofacitinib, if they manage to get U.S. regulatory approvals. Humira is a TNF inhibitor and is injected in the body. In addition, Humira with lose its U. S. patent protection at the end of 2016. The collaboration will give Abbott a channel fend off new entrants and help it retain its market leader position in autoimmune market.
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