AbbVie's stock declined over 5% on Wednesday after BNP Paribas highlighted potential competition for its leading immunology drug, Skyrizi, from a newly approved oral psoriasis treatment developed by Johnson & Johnson and Protagonist Therapeutics. The two companies announced that the U.S. Food and Drug Administration has approved Icotyde, a once-daily oral therapy offering a new treatment option for patients with moderate-to-severe plaque psoriasis, an inflammatory skin condition.

Analyst Nawan Tay noted in a research report, "The approval of Icotyde could represent a competitor for AbbVie's Skyrizi." She added that Johnson & Johnson plans to position the drug as a first-line therapy alongside its injectable treatment, Tremfya. However, Tay pointed out that AbbVie remains well-positioned in the plaque psoriasis space due to Skyrizi's strong efficacy profile and its quarterly dosing frequency after the initial loading dose. This less frequent administration offers advantages in patient adherence compared to a daily oral medication.

The analyst wrote, "Both companies have indicated that the introduction of an oral therapy could help expand the market, increase access, and further raise the current penetration rate from 30-40%. We believe this suggests Skyrizi still has room for growth." Tay also mentioned ongoing studies evaluating Icotyde for other inflammatory conditions, such as psoriatic arthritis, which she views as "potentially representing additional competition for Skyrizi."

Despite this, she forecasts Skyrizi's sales will grow 23% year-over-year in fiscal 2026, implying a compound annual growth rate of 14% from fiscal 2025 to 2028, providing significant growth momentum for AbbVie.