Already struggling due to new competition in the Bruton’s tyrosine kinase (BTK) inhibitor class, AbbVie Inc.’s Imbruvica (ibrutinib) has been hemorrhaging revenues and did so again during the third quarter, the firm reported 27 October. But AbbVie has now written down the drug’s value by $2.1bn after the Centers for Medicare and Medicaid Services selected the chronic lymphocytic leukemia therapy for price negotiation under the Inflation Reduction Act (IRA).
Barclay’s Equity Research analyst Carter Gould said in a 27 October note said this was the first time he had seen a company take an impairment charge against future cash flow on a drug’s value “directly attributable to IRA.” (Also see "US Price Negotiation Pioneers: The Unique Position Of Imbruvica" - Pink Sheet, 8 September, 2023
Key Takeaways
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AbbVie directly attributed its $2.1bn impairment charge against cancer drug Imbruvica’s value to the ramifications of Medicare drug-pricing negotiation.
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The pharma is managing US biosimilar competition to Humira in line with its predictions, with 39% erosion during Q3 actually a bit better than projected
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