Abbvie said on Friday it would record a charge of about $3.5 billion related to its experimental schizophrenia drug, emraclidine, which recently failed in two mid-stage studies. AbbVie has been spending significantly on deals as its blockbuster rheumatoid arthritis drug,

AbbVie said the impairment charge is related to last year’s $8.7 billion bet on Cerevel following the failure of the deal’s key drug candidate, emraclidine, a schizophrenia treatment .

Sasanlimab, a subcutaneous immunotherapy developed by Pfizer, could help treat bladder cancer. Elsewhere, Royalty Pharma moved to simplify its corporate structure and Biogen made another hire.

Abbvie said on Friday it would record a charge of about $3.5 billion related to its experimental schizophrenia drug, emraclidine, which recently failed in two mid-stage studies.

AbbVie (NYSE:ABBV) said it expects to record an impairment charge of approximately $3.5B related to the drug emraclidine, which it acquired through its acquisition of Cerevel Therapeutics last year. The drugmaker disclosed in November that two Phase 2 studies of the drug failed to meet their primary endpoint.

Key Takeaways AbbVie said it would take a $3.5 billion dollar impairment charge related to the failure of a drug it acquired in its purchase of Cerevel Therapeutics.The biotech company reported in November that the schizophrenia drug,