The disappointing news from the laboratory weighed Abvie (NYSE: ABBV) shares when the trading week began. The company had high hopes for a schizophrenia drug it was developing; However, it did not perform well in recent tests. According to the company’s latest reading, investors were aggressively trading the stock, leaving it down 12% in afternoon trading.
Just before the market opened on Monday, AbbVie revealed that its schizophrenia treatment with emraclidine failed to meet its primary endpoint in a Phase 2 trial. It failed to show a statistically significant reduction on the Positive and Negative Syndrome Scale (PANSS) baseline compared to placebo.
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The company said, perhaps understating the case, that it is disappointed by the results. He pledged to continue analyzing the trial data to determine next steps with emralidine. These results often put an end to drug development.
In the press release about the trial, AbbVie Chief Scientific Officer Roopal Thakkar said the company is still “committed to finding better treatments for people living with psychiatric and neurological disorders.”
It is not surprising that the management expresses the hope of being able to successfully develop a new product for this type of ailment. In early August, it closed a deal valued at $8.7 billion to acquire emraclidine developer Cerevel Therapeutics. The schizophrenia drug was one of the main reasons AbbVie bought the company.
However, Cerevel was no one-trick pony. For its considerable spending, AbbVie also acquired several other neuroscience-focused biotech development programs. The most promising of these is Parkinson’s disease tavapadon, which unlike emralidine has performed well in recent late-stage trials.
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