AbbVie Takes $3.5B Impairment Charge for Failed Schizophrenia Drug

Key Takeaways

• AbbVie mentioned it might take a $3.5 billion greenback impairment cost associated to the failure of a drug it acquired in its buy of Cerevel Therapeutics.
• The biotech firm reported in November that the schizophrenia drug, emraclidine, didn't attain major endpoints in a Section 2 trial.
• Abbvie defined that following the examine, it started an analysis of the affect of the outcomes, "which resulted in a big lower within the estimated future money flows for the product."

AbbVie (ABBV) shares fell Friday after the biotech agency introduced it might take an estimated $3.5 billion impairment cost due to the failure of one among its medication.

The corporate wrote in a regulatory submitting that the cost was associated to emraclidine, an experimental medication to deal with schizophrenia in adults that AbbVie acquired when it bought Cerevel Therapeutics Holdings.

AbbVie reported in November {that a} Section 2 trial of emraclidine confirmed the remedy didn’t meet major endpoints. 

Within the submitting, the corporate defined that following the examine, it started an analysis of the affect of the outcomes, “which resulted in a significant decrease in the estimated future cash flows for the product.”

Shares of AbbVie, which fell 1% in current buying and selling, are up about 7% over the previous yr.

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