AbbVie Schizophrenia Drug Fails Mid-Stage Trials, Shares Plunge 12.8%

Nov 11, 2024, 03:05 PM

AbbVie Inc.'s experimental schizophrenia drug, Emraclidine, failed to meet the primary endpoints in two mid-stage Phase 2 clinical trials, leading to a significant drop in its stock price. The drug, acquired through AbbVie's $9 billion purchase of Cerevel Therapeutics, did not show statistically significant improvement in patients at week six of the trials. As a result, AbbVie's shares fell by as much as 12.8% in premarket trading and continued to decline throughout the day, ending down more than 11%. This outcome has benefited Bristol Myers Squibb, whose stock rose by 11.6% following the news. Bristol Myers recently received FDA approval for Cobenfy, the first new oral schizophrenia drug in decades, which launched in October.