AbbVie and BMS each secure FDA approval, but impact of their neuro‑drug acquisitions remains uncertain

AbbVie and Bristol Myers Squibb have both received FDA clearance for new Parkinson's treatments, prompting a fresh look at the large neuro‑focused deals they completed last year. AbbVie bought Cerevel Therapeutics for $8.7 billion in late 2023, while BMS acquired Karuna Therapeutics for $14 billion shortly thereafter.

Since the Cerevel purchase, AbbVie’s lead schizophrenia candidate, emraclidine, has stumbled in two Phase 2 trials, sending the company’s stock sharply lower and raising doubts about the value of the acquisition. The setback is especially stark given the high expectations tied to the Cerevel pipeline.

BMS’s parallel move brought in Karuna’s lead asset, KarXT, which recently achieved a positive regulatory outcome and is now positioned as a competitor in the schizophrenia space. The contrasting trial results have left analysts uncertain about which deal will ultimately prove more beneficial.

Mizuho Securities analyst Graig Suvannavejh cautioned that it is still too early to declare a clear winner, noting that both companies still have significant development risk ahead.