On Monday, AbbVie Inc ABBV stock plunged after two trials investigating emraclidine as a once-daily, oral monotherapy treatment for adults with schizophrenia failed two Phase 2 trials.
The studies did not meet their primary endpoint of showing a statistically significant improvement in the change from baseline in the Positive and Negative Syndrome Scale (PANSS) total score compared to the placebo group at week 6.
PANSS is a scale used for measuring the symptom severity of schizophrenia.
Cantor Fitzgerald points out that Wall Street had anticipated positive results from both of AbbVie’s studies, though they expected the details to be mixed, such as how impressive the PANSS score might be.
Even with the negative results, Cantor Fitzgerald remains positive on AbbVie’s stock and believes the company's pipeline is undervalued.
“This is disappointing and unexpected,” the analyst added. The disappointing AbbVie’s trial results is a benefit for Bristol Myers Squibb & Co’s BMY approved schizophrenia drug, Cobenfy, but they raise questions about using selective muscarinic targeting for treating schizophrenia and other conditions.
The data could suggest differences between positive allosteric modulators like emraclidine and direct agonists like Cobenfy.
Cantor maintains the Overweight rating with a price target of $240.
Despite this setback, the Cerevel acquisition still holds promise, with other treatments like Darigabat (for epilepsy and anxiety) and Tavapadon (Parkinson’s) continuing to progress.
Top-line results from the TEMPO-2 Phase 3 flexible-dose monotherapy trial of Tavapadon in Parkinson’s Disease are expected by the end of 2024. Results from the long-term safety study, TEMPO-4, are expected in 2025.
Price Action: ABBV stock is down 11.7% at $176.16 at last check Monday.
Photo: Formatoriginal/Shutterstock.com
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