Bristol-Myers Squibb (BMY), a drug company, is once again halting drug development aimed at treating fibrotic diseases. In its latest 10-Q, Bristol-Myer revealed it is taking a $230 million impairment charge in connection with the decision:

“In the second quarter of 2021, a $230 million IPRD impairment charge was recorded in Research and development expense following a decision to discontinue development of an investigational compound in connection with the prioritization of current pipeline opportunities. The compound was being studied as a potential treatment for fibrotic diseases and was acquired in the acquisition of Celgene. The charge represented a full write-down based on the estimated fair value determined using discounted cash flow projections.”

It’s the latest setback for BMY in this field as it has routinely partnered with universities (2015) to investigate fibrosis related treatments (2018) that thus far have resulted in little if any commercial success. The decision to halt development doesn’t mean Bristol-Myer is giving up on the space as it has a partnership with a biotech company working on a fibrosis treatment.