AbbVie to Record $four Billion Impairment on Stemcentrx Assets
will ebook a more or less $four billion fee in reference to a 2016 acquisition that it billed as providing a promising most cancers remedy.
Illinois-based AbbVie stated Friday it diminished the worth of intangible property from its acquire of Stemcentrx Inc. and stated it used to be reviewing the rest $1 billion for additional impairment.
At the time the Stemcentrx acquisition used to be introduced in 2016, AbbVie pointed on the experimental most cancers drug, dubbed “Rova-T,” as a possible “multi-billion dollar peak revenue opportunity with expected commercialization in 2018.” AbbVie was hoping the remedy would lend a hand offset the lack of exclusivity of its top-selling drug, Humira.
AbbVie agreed to purchase Stemcentrx, subsidized via billionaire investor Peter Thiel’s Founders Fund, in a $five.eight billion cash-and-stock deal and pay up to $four billion extra in possible milestone bills.
Disappointing effects for a mid-stage Rova-T scientific trial in sufferers with one of those lung most cancers led to a inventory selloff in March that corporate executives known as an overreaction.
“If you look at the overall value that came out of our market cap, you certainly couldn’t tie it back to any one product or even the value of the entire Stemcentrx acquisition,” Chief Financial Officer William Chase stated at an trade tournament in May. “So it was, by any measure, an overreaction.”
In December, it stopped enrolling sufferers in a single late-stage Rova-T find out about however stated the verdict wouldn’t impact different Rova-T scientific research.
On Friday, AbbVie stated it could proceed to assessment the Stemcentrx-related scientific building systems.
Write to Maria Armental at [email protected]