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The recent announcement from a significant player in the pharmaceutical industry indicates that not all acquisitions yield immediate success.
AbbVie (ABBV -12.55%) faced a challenging start to the trading week, as disappointing clinical trial results for a schizophrenia medication dampened investor sentiment. Following the release of the trial data, shares of AbbVie experienced a notable drop of 12% in late-afternoon trading.
Challenges in Schizophrenia Treatment Development
On Monday morning, prior to market opening, AbbVie disclosed that its emraclidine treatment for schizophrenia did not achieve its primary objective in a phase 2 trial. The drug failed to demonstrate a statistically significant improvement on the Positive and Negative Syndrome Scale (PANSS) when compared to a placebo.
While AbbVie described its disappointment over the trial outcomes, it remains determined to thoroughly evaluate the data before deciding on the future of emraclidine. Often, unfavorable trial results lead to the termination of a drug’s development journey.
In the trial announcement, Roopal Thakkar, AbbVie’s chief scientific officer, emphasized the company’s ongoing commitment to enhancing treatment options for individuals impacted by psychiatric and neurological conditions.
Looking Beyond the Setback
Despite the recent setback, AbbVie’s leadership is expecting to cultivate promising developments in mental health treatment. The company made headlines earlier this year, concluding an $8.7 billion deal to acquire Cerevel Therapeutics, the firm responsible for emraclidine’s development. This acquisition was largely motivated by the potential of the schizophrenia drug.
Cerevel Therapeutics, however, offers more than just emraclidine. Alongside the schizophrenia candidate, AbbVie gained access to a variety of innovative pipeline projects focused on neuroscience. A standout among these is tavapadon, a treatment for Parkinson’s disease, which has demonstrated positive results in recent late-stage clinical trials.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie. The Motley Fool has a disclosure policy.
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