Oct. 27 Quick Takes: AbbVie pegs IRA cost at $2.1 billion

ARTICLE | Politics, Policy & Law

Plus: FDA approves Coherus’ PD-1 mAb based on China data, and updates from Otsuka, Sernova, Lilly, Roche and more

By BioCentury Staff

October 27, 2023 11:58 PM UTC

AbbVie Inc. (NYSE:ABBV) announced Friday that it had recorded a pre-tax impairment charge of $2.1 billion to account for selection of Imbruvica ibrutinib for the Medicare drug price negotiation program that was created by the Inflation Reduction Act. In the pharma’s earnings call, CFO Scott Reents said the calculation was based on a “reasonable assumption” about the price CMS will set for Imbruvica. The company is in the process of negotiating with CMS and expects to receive “at least an initial thought on price” by Feb. 1, 2024, Reents said. The final price will be disclosed by Sept. 1, 2024.

Also on the earning call, CEO Richard Gonzalez said AbbVie’s business development team is most interested in new immunology mechanisms that could be used in combination with the company’s marketed therapies, such as Skyrizi risankizumab or Rinvoq upadacitinib. AbbVie is also interested in next-generation CAR T technologies and bispecific T cell engagers, he said…