Humira has been a phenomenal drug for Abbott Labs (NYSE:ABT). While it is already approved for several treatments, or indications, in the U.S. and Europe, it recently added another one to its name in Europe. The drug is now approved for treating patients with severe axial spondyloarthritis (axSpA) who do not show any structural damage on X-ray analysis. 
We are in process of revising our price estimate for Abbott Labs, which currently stands at $66.
The European Commission’s approval for Humira’s use in Axial spondyloarthritis (axSpA) will add an additional revenue stream for the drug. For now, it is the only approved treatment for non-radiographic axSpA patients. AxSpA is a condition that causes chronic back pain and stiffness, and can also cause additional symptoms such as arthritis, inflammation in the eye and gastrointestinal tract. Humira enjoys being the sole treatment for this condition.
Humira is mainly used to treat rheumatoid arthritis and is the world’s best-selling drug in the autoimmune market with an estimated market share of well over 30%. Humira’s revenue exceeded $8 billion in 2011. Other indications for which Humira is approved in the U.S. include psoriatic arthritis, ankylosing spondylitis, Crohn’s disease, juvenile idiopathic arthritis, and plaque psoriasis. We believe, owing to the new indication, the drug can cross $10 billion in sales by 2014.Notes: