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Merck's Write-Down Of Phase II Nuc Illustrates Current Reality In HCV

 
• By Joseph Haas

While a dwindling patient base and pricing pressures are depleting the market opportunity in hepatitis C, Merck's decision also may result from regulatory dialogue potentially delaying the start of a Phase III study.

Liver infection

Merck & Co. Inc.'s decision to take a $2.9bn pre-tax intangible asset impairment charge against its 2016 financial results due to a reassessment of the value of Phase II hepatitis C candidate uprifosbuvir (MK-3682) reflects the declining market opportunity in HCV due to a diminishing patient population and the impacts of pricing pushbacks.

In an 8-K filing with the US Securities and Exchange Commission Feb. 23, the firm revealed that it would assess the impairment charge – thereby reducing its earnings-per-share for 2016 – because of "recent changes to the product profile." After taxes, the charge will amount to roughly a loss of $1

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