Abbvie to record US$4 billion impairment charges on Stemcentrx assets

Abbvie to record US$4 billion impairment charges on Stemcentrx assets

Abbvie Inc on Friday said https://bit.ly/2F9iUlb it will record an estimated US$4 billion in impairment charges related to the scrapping of its development program of Rova-T, an investigational cancer therapy.

A trader works by the post that trades AbbVie on the floor of the New York Stock Exchange
A trader works by the post that trades AbbVie on the floor of the New York Stock Exchange

REUTERS: Abbvie Inc on Friday said https://bit.ly/2F9iUlb it will record an estimated US$4 billion in impairment charges related to the scrapping of its development program of Rova-T, an investigational cancer therapy.

The drugmaker acquired Rova-T through its US$5.8 billion acquisition of Stemcentrx in 2016, as it aimed to enter the broad and lucrative arena of solid tumors and lessen dependence on its blockbuster arthritis treatment Humira.

In December, Abbvie halted enrollment for a late-stage trial of Rova-T as a second-line therapy for advanced small-cell lung cancer, following recommendations made by an independent data monitoring committee.

Abbive said it will monitor a remaining US$1 billion of intangible assets for further impairment. It added that it will continue to evaluate other Stemcentrx-related clinical development programs.

(Reporting by Manogna Maddipatla in Bengaluru; Editing by Shailesh Kuber)

Source: Reuters

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