BRISTOL-MYERS Squibb has abandoned an experimental hepatitis C pill it bought for $2.5 billion (€2 billion) earlier this year after one patient died and others were hospitalised while taking the drug in a study.
Bristol-Myers will take a charge of $1.8 billion in the third quarter related to research and development of the therapy, the New York-based company said in a regulatory filing yesterday.
The drugmaker suspended testing the medicine, known as BMS-986094, on August 1st after a patient developed heart failure.
Bristol-Myers said yesterday it had discontinued development of the drug, part of a class of medicines called nucleotide polymerase inhibitors, and was consulting US regulators to assess the treatment’s effects.
Along with the death, eight patients suffered from heart and kidney toxicity, the company said.
“Bristol-Myers paid a fortune for a pearl that turns out to be fake,” said Erik Gordon, a University of Michigan business professor who follows the health industry, referring to the company’s “string of pearls” name for its acquisition strategy.
“The Inhibitex acquisition shows the dangers of paying huge premiums for late-stage drug candidates in hot areas. They still can fail.”
Bristol declined 10 US cents to $32.05 before markets opened in New York.
The hepatitis C drug was thought by researchers and analysts to be a key therapy in a push by companies, including Gilead Sciences and Vertex Pharmaceuticals, to replace the standard injectable treatment with pills that are more convenient and have fewer side-effects. Analysts estimate the market may be $20 billion for the new therapies.
“We’re still focused on our HCV development programme, and will continue to follow the science as we execute on our strategy,” said Cristi Barnett, a Bristol-Myers spokeswoman. “We’re going to do whatever it takes to get the best treatment to patients.”
Hepatitis C is a viral infection that can cause liver damage and is estimated to affect 180 million people worldwide, according to the US National Institutes of Health. The disease can lay dormant for decades before harming patients. – (Bloomberg)
