Summary
Bristol-Myers Squibb Company (BMY) announced on August 23, 2012, a significant decision to discontinue the development of BMS-986094 (formerly INX-189), a hepatitis C treatment candidate. This move was prompted by patient safety concerns identified during a Phase II study, which led to the voluntary suspension of the study on August 1, 2012. As a direct consequence of this discontinued development program, the company will record a substantial non-cash, pre-tax impairment charge of $1.8 billion. This charge relates to the in-process research and development intangible asset acquired through the Inhibitex, Inc. acquisition in February 2012 and is expected to be recognized in the third quarter of 2012. The company has stated that this impairment charge will not result in future cash expenditures, indicating it's an accounting adjustment rather than an operational outflow.
Key Highlights
- 1Discontinuation of BMS-986094 (formerly INX-189) development for Hepatitis C due to patient safety concerns.
- 2Phase II study for BMS-986094 voluntarily suspended on August 1, 2012, due to safety assessments.
- 3A non-cash, pre-tax impairment charge of $1.8 billion will be recognized in Q3 2012.
- 4The impairment charge is related to an in-process research and development intangible asset acquired with Inhibitex, Inc.
- 5The company expects no future cash expenditures associated with this impairment charge.
- 6The decision reflects a focus on patient safety in ongoing clinical trials.