Bristol-Myers Squibb Takes $1.8B Charge for Failed Drug

A patient died of heart failure during clinical trials of the drug

   

Bristol-Myers Squibb Takes $1.8B Charge for Failed Drug

The failure of a new hepatitis drug will prove costly for Bristol-Myers Squibb (NYSE:BMY).

The drug maker announced on Friday that it will take a $1.8 billion charge against third-quarter earnings after canceling further research into the treatment.

prescription drugs 200x200 Bristol Myers Squibb Takes $1.8B Charge for Failed Drug
Ethical Drug Company’s Stock Is No Good

Known as BMS-986094, the drug was hoped to treat hepatitis-C, by attacking an enzyme needed for the virus to reproduce inside the body, Reuters noted.

The market for hepatitis-C medications is projected to hit $19 billion worldwide by the end of he decade.

Originally developed by Inhibitex, Bristol-Myers Squibb obtained BMS-986094 when it bought Inhibitex for $2.5 billion earlier this year.

But the drug trials were called off after one of the test subjects developed heart failure and died over concerns about its safety.

Investors shrugged off news of the charge. Shares of Bristol-Myers Squibb rose a little over 1% in late Friday trading.


Article printed from InvestorPlace Media, http://investorplace.com/2012/08/bristol-myers-squibb-takes-1-8b-charge-for-failed-drug/.

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