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AbbVie said it will take a $3.5 billion impairment charge related to the failure of a drug it acquired with its acquisition of Cerevel Therapeutics.
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The biotech company reported in November that its schizophrenia drug, emraclidine, failed to meet primary endpoints in a second phase of the trial.
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Abbvie explained that after the study, it began evaluating the impact of the results, “which resulted in a significant reduction in estimated future cash flows for the product.”
AbbVie (ABBV) shares fell on Friday after the biotech company announced it would take an estimated $3.5 billion allowance for impairment due to the failure of one of his medications.
The company wrote in a regulatory filing that the charge is related to emraclidine, an experimental drug for the treatment of schizophrenia in adults that AbbVie acquired through its purchase of Cerevel Therapeutics Holdings.
AbbVie reported in November that a Phase 2 trial of emraclidine showed that treatment did not meet the primary endpoints.
In the filing, the company explained that after the study, it began an impact assessment of the results, “resulting in a significant reduction in the estimated future cash flows for the product.”
AbbVie shares, which were down 1% in recent trading, are up about 7% over the past year.
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