AbbVie declines after missing main goal in schizophrenia treatment trials

AbbVie (NYSE:ABBV) shares dropped about 11% after its late-stage trials investigating emraclidine as an oral monotherapy treatment for adults with schizophrenia experiencing acute exacerbation of psychotic symptoms, did not meet their primary endpoint.

The company had acquired emraclidine in its $8.7B acquisition of Cerevel Therapeutics last year.

The trial failed to show a statistically significant reduction in the change from baseline in the positive and negative syndrome scale total score compared to the placebo group at week 6.

In the trials, emraclidine was well-tolerated with a safety profile comparable to that observed in the Phase 1b trial, the company said in a statement.

“We think Emraclidine failure is a big surprise and significant negative for ABBV since it makes people question the pipeline strength for the company. We see ~$25-30/sh downside for ABBV and see competitor BMY as a winner with $5-6/sh upside,” Wells Fargo stated.

Bristol Myers Squibb (BMY), which received FDA approval for its schizophrenia drug in September, gained 13%.