Setback for AbbVie’s Schizophrenia Treatment
Trials Fall Short, Raising Questions About Neuroscience Strategy
AbbVie Inc’s stock took a hit on Monday after two Phase 2 trials investigating emraclidine as a treatment for adults with schizophrenia failed to meet their primary endpoint. The studies did not show a statistically significant improvement in the Positive and Negative Syndrome Scale (PANSS) total score compared to the placebo group at week 6.
Commercial Competition Shifts in Favor of Bristol Myers Squibb
Truist analysts believe that this failure will give Bristol Myers Squibb & Co’s Cobenfy (xanomeline and trospium chloride, KarXT) a competitive edge in the schizophrenia market. The update is also likely to raise questions about AbbVie’s strategy in neuroscience, which was highlighted during their third-quarter earnings call.
Growth Prospects Remain Strong
Despite this setback, Truist analysts remain positive on AbbVie’s growth prospects, particularly from their immunology I&I franchise. Emraclidine was part of AbbVie’s acquisition of Cerevel last year, which also included Tavapadon, a promising treatment for Parkinson’s disease.
Tavapadon Shows Promise in Parkinson’s Disease Trials
In contrast to emraclidine, Tavapadon recently reported positive Phase 3 results in Parkinson’s disease. Patients treated with tavapadon experienced a statistically significant reduction in the Movement Disorder Society – Unified Parkinson’s Disease Rating Scale (MDS-UPDRS) Parts II and III combined score at week 26.
Analysts Weigh In
BMO Capital Markets analysts have lowered their price target from $228 to $208, but maintain an Outperform rating, citing confidence in AbbVie’s immunology portfolio. Meanwhile, Bristol Myers Squibb’s Cobenfy is now poised to dominate the schizophrenia market, according to BMO analysts.
Price Action
ABBV stock is down 0.84% at $172.96, but analysts remain confident in the company’s growth prospects. As the company moves forward, it will be important to watch how they adapt their neuroscience strategy in response to this setback.
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