Was Rova-T Worth The High Price To AbbVie?
This article was originally published in The Pink Sheet Daily
The big pharma presented early-stage data for its antibody-drug conjugate at the American Society of Clinical Oncology (ASCO) annual meeting in Chicago that showed promise for the drug in a small subset of patients with small cell lung cancer, but had disappointing results for the overall population.
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At J.P. Morgan, AbbVie said the clinical struggles of Rova-T won’t alter its deal-making plans and leave it with plenty of solid tumor possibilities. The pharma took a $4bn write-off of the Stemcentrx deal on Jan. 4.
Analysts already were skeptical about AbbVie's $5bn peak earnings projections for the ADC, but now some wonder if so-so data in third-line small cell lung cancer threaten Rova-T's viability for approval.
Biopharma financing decreased by 16% in Q2 to $4.8 billion, while the total value of acquisitions nearly doubled to $22 billion, including AbbVie's $9.8 billion takeover of Stemcentrx. Alliances garnered an aggregate potential deal value of $23.1 billion, led by Allergan's CNS agreement with Heptares.