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Biogen and AbbVie halt sales of Zinbryta multiple sclerosis drug due to safety concerns

Last updated: 06:48 03 Mar 2018 AEDT, First published: 01:48 03 Mar 2018 AEDT

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Zinbryta brought in worldwide sales of US$107mln last year

Biogen Inc. (NASDAQ:BIIB) and AbbVie Inc. (NYSE:ABBV) said they have voluntarily withdrawn their multiple sclerosis drug, Zinbryta, worldwide following reports of inflammation of the brain related to the drug's use.

The European Medicines Agency (EMA) has started what it termed an "urgent review" of the drug following seven cases of serious inflammatory brain disorders in Germany and one case in Spain. The agency said Biogen has decided to stop ongoing clinical studies of Zinbryta in the EU.

Biogen and AbbVie in a joint statement said they believed the action to withdraw Zinbryta worldwide "is in the best interest of patients."

Zinbryta brought in worldwide sales of US$107mln, with Biogen's share totalling US$53mln.

William Blair analyst Matt Phipps said in a research note that although the new safety concerns related to the drug "are unfortunate, the opportunity for Zinbryta was never significant given the profile and competitive treatment landscape in multiple sclerosis."

Biogen’s 2017 earnings were hurt slightly after EMA took steps to minimise risks of liver damage linked to the drug.

More than 8,000 patients have been treated with Zinbryta to date, according to EMA data. The majority of EU patients have been treated in Germany.

In trading around 2:30 p.m. ET Biogen was up US$3.56 a share at $285.91and AbbVie was up US75 cents a share at US$114.63.

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