BofA raises AbbVie's PT on deal to develop obesity drug

Brokerage BofA Global Research raises PT on drugmaker AbbVie ABBV.N to $223 from $200, a 5.4% upside to the stock's last close

Maintains "neutral" rating

PT raise in part due to ABBV signing a licensing deal earlier this week with Danish biotech Gubra GUBRA.CO to develop an obesity treatment that mimics pancreatic hormone amylin

Brokerage says ABBV expects weight-loss of 15% to 20% as a stand-alone product with better tolerability and less lean-muscle loss than GLP-1 drugs

Although late-entrants into the obesity drug market could struggle to compete with incumbents Novo Nordisk NOVOb.CO and Eli Lilly LLY.N, a suite of products and/or differentiation will help, BofA says

Stock has risen 18.2% in the past 12 months