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AbbVie shares slip after schizophrenia drug trial misses primary endpoint

Published 11/11/2024, 15:10
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Investing.com - AbbVie (NYSE:ABBV) has announced that its two phase 2 trials of a treatment for adults with schizophrenia missed its primary endpoint, sending shares in the drugmaker down sharply in premarket US trading.

In a statement, Illinois-based AbbVie said the studies did not show a statistically significant improvement in patients using the medicine, emraclidine, as a once-daily oral monotherapy.

"While we are disappointed with the results, we are continuing to analyze the data to determine next steps," said AbbVie Chief Scientific Officer Roopal Thakkar in a statement.

"We are confident that our innovative pipeline will continue to bring meaningful therapies to patients, and we remain committed to finding better treatments for people living with psychiatric and neurological disorders."

AbbVie currently has approval for its antipsychotic drug Vraylar. It has been pushing to roll out newer medicines for the disease since an $8.7 billion takeover of Cerevel Therapeutics last year.

In October, AbbVie lifted his full-year income forecast, saying its was seeing "momentum" in its operations after third-quarter net revenue topped estimates. The company now expects adjusted profit per share to be between $10.90 to $10.94 in its current fiscal year, up from a prior estimate of $10.67 to $10.87.

In a statement at the time, Chief Executive Robert Michael said the firm has been bolstered by "significant pipeline progress," leading it to have "confidence in the long-term growth outlook." AbbVie has been focusing on building out its pipeline of medications since its blockbuster arthritis drug Humira lost patent protection last year.

Following the announcement on Monday, shares in rival Bristol-Myers Squibb (NYSE:BMY) rose. The US Food and Drug Administration recently approved the group's schizophrenia drug, Cobenfy. Bristol Myers obtained the drug, which is also known as KarXT, through a $14 billion purchase of Karuna Therapeutics in 2023.

(Reuters contributed reporting.)

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