Shares of Pfizer dropped about 2% after the pharma giant decided to scrap its high-profile cholesterol drug bococizumbab. Large clinical trials revealed that the effectiveness of the injectable medicine has waned over time.
The decision has also force the company to cut its 2016 earnings forecast.
According to Pfizer, bococizumab gradually lost its potency in reducing “bad” LDL cholesterol and caused more irritation at the injection site than similar recently approved drugs.
Chief Executive Ian Read said in an interview, “The product looked great until we got the 52-week data,” Read said.
Pfizer has cut the upper end of its 2016 earnings forecast to $2.43 per share from $2.48 while retaining the lower end at $2.38.
Disclaimer: We have no position in Pfizer Inc. (NYSE: PFE) and have not been compensated for this article.