BMS Q3 Earnings Beat Estimates, but Cobenfy Faces Challenges in Schizophrenia Market
Bristol Myers Squibb (BMS) reported strong third-quarter earnings, surpassing analyst expectations with $12.2 billion in sales. However, the company's recently approved schizophrenia drug Cobenfy fell short of projections, highlighting the difficulties of penetrating a market with long-established prescribing habits.
Cobenfy's Slow Start and Future Potential
Approved by the FDA in September 2024 as the first novel drug for schizophrenia in 35 years, Cobenfy generated $43 million in Q3, slightly below analyst estimates of $45-46 million. BMS CFO David Elkins reported a total of $105 million in sales for Cobenfy to date.
Despite the slower-than-expected uptake, BMS CEO Chris Boerner remained optimistic, stating, "Cobenfy is delivering steady growth as we continue to receive positive feedback from physicians on key indicators, supporting our expectation that this is a meaningful first indication for Cobenfy."
The company acknowledges the challenge of changing "deeply ingrained D2 [dopamine] prescribing habits" and plans to focus on educating healthcare providers about Cobenfy's novel mechanism of action.
Alzheimer's Disease Psychosis Trial Results Pending
Investors and analysts are eagerly awaiting results from the Phase III ADEPT-2 trial, which evaluates Cobenfy against placebo in treating moderate to severe psychosis in Alzheimer's disease patients. The readout, initially expected with Q3 results, has been delayed due to concerns about trial execution.
Two additional studies of Cobenfy in Alzheimer's disease psychosis, ADEPT-4 and ADEPT-1, are set to report results next year. Boerner noted, "We anticipate needing two of these three studies to read out positively to support regulatory approval."
Strong Performance from Growth Portfolio
BMS's growth portfolio performed well in Q3, contributing $6.9 billion to the company's total revenue. Key drivers included:
- Opdivo (cancer): $2.5 billion
- Breyanzi (CAR T therapy): $359 million (58% year-over-year increase)
- Camzyos: $296 million (88% increase)
Based on these results, BMS raised its full-year 2025 revenue guidance from $46.5-47.5 billion to $47.5-48 billion.
References
- BMS Battles ‘Deeply Ingrained’ Prescribing Habits in Schizophrenia as Cobenfy Misses Q3 Estimates
Bristol Myers Squibb beat analyst and consensus estimates for the third quarter with $12.2 billion in sales, but executives on the company’s investor call faced questions about a sluggish uptake for schizophrenia drug Cobenfy as well as a highly anticipated Alzheimer’s psychosis readout for the product.
Explore Further
What are the key differences between Cobenfy's novel mechanism of action and traditional D2 dopamine-targeting schizophrenia treatments?
What is the size and growth forecast for the schizophrenia treatment market, and how does Cobenfy's potential compare to competitors?
What clinical efficacy and safety data from the ADEPT-2 trial will be critical for Cobenfy's potential approval for Alzheimer's disease psychosis?
What are the leading competitors to Cobenfy in the Alzheimer's disease psychosis treatment market, and how do their mechanisms differ?
How is Bristol Myers Squibb planning to address the challenges of physician prescribing habits to improve Cobenfy's market penetration?