AbbVie takes $3.5 billion hit after schizophrenia failure

13 January 2025

AbbVie (NYSE: ABBV) has announced a $3.5 billion non-cash impairment charge related to its potential schizophrenia treatment, emraclidine, following the drug's failure in Phase II trials last year.

Studies of emraclidine, which was acquired in the $8.7 billion purchase of Cerevel Therapeutics, failed to meet primary goals, prompting a reassessment of the program in November.

Researchers have expressed high hopes for the drug, a selective M4 muscarinic modulator, as a potentially novel offering in schizophrenia. Designed as a once-daily oral therapy for managing acute psychotic symptoms, it was the key driver of AbbVie’s Cerevel acquisition.

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