BNP Paribas: J&J's New Drug Icotyde Enters Psoriasis Market, Posing Challenge to AbbVie's Star Drug Skyrizi

Zhitong Finance noted that on Wednesday, AbbVie (ABBV.US) shares fell more than 5% after BNP Paribas pointed out that its immunology star drug Skyrizi may face competition from Johnson & Johnson (JNJ.US) and Protagonist Therapeutics (PRGX.US)'s newly approved oral drug Icotyde for plaque psoriasis.

Johnson & Johnson and Protagonist announced on Wednesday that the U.S. Food and Drug Administration (FDA) has approved Icotyde for marketing. This is a once-daily oral therapy, offering a new treatment option for patients with moderate to severe plaque psoriasis, a skin-related inflammatory condition.

Analyst Navan Thay wrote in the research report,"The approval of Icotyde may represent the emergence of a competitor for AbbVie's Skyrizi," she added, noting that Johnson & Johnson plans to position the drug as a first-line therapy, alongside its injectable drug Tremfya.

However, Tai pointed out that given Skyrizi's strong efficacy and its quarterly injection frequency (after the initial dose), AbbVie remains in a favorable position in the plaque psoriasis field. Compared to once-daily oral administration, this frequency offers an advantage in terms of medication adherence.

The analyst wrote: "Both companies have indicated that the entry of oral medications could help expand the market, provide more access opportunities, and further increase the current penetration rate from 30-40%. We believe this implies that Skyrizi still has room for growth."

Tai also mentioned that the ongoing research on Icotyde in other inflammatory diseases, such as psoriatic arthritis, could "potentially represent additional competition for Skyrizi." Nonetheless, she projected that Skyrizi’s sales would grow by 23% year-over-year in fiscal year 2026, implying a compound annual growth rate (CAGR) of 14% from fiscal years 2025 to 2028, thereby providing AbbVie with significant growth momentum.