BMS' Cobenfy Shows Steady Growth in Schizophrenia Market, Eyes Expansion

Bristol Myers Squibb's (BMS) novel schizophrenia medication, Cobenfy, has completed its first year on the market, demonstrating steady growth while facing challenges in a highly entrenched treatment landscape. The company is now focusing on expanding the drug's reach and exploring new indications to fulfill its potential as a blockbuster therapy.

First-Year Performance and Market Positioning

Cobenfy, approved by the FDA for schizophrenia treatment in September 2024, generated third-quarter sales of $43 million, slightly below Wall Street expectations of $44 million. This represents a modest increase from the $35 million reported in the second quarter. Despite the underwhelming performance compared to BMS's overall 3% revenue beat, company executives remain optimistic about Cobenfy's future.

Adam Lenkowsky, Chief Commercialization Officer at BMS, emphasized the drug's progress, stating, "We're establishing a new treatment paradigm in what we knew was going to be a highly entrenched market." Cobenfy has surpassed 2,400 weekly total scripts, outpacing recently launched analogs in the schizophrenia market.

To boost adoption, BMS is implementing several strategies:

1. Expanding its field force in community and hospital settings
2. Engaging in peer education for new prescribers
3. Introducing real-world data to build physician confidence
4. Conducting a phase 4 study to address concerns about switching from traditional D2 receptor antagonists to Cobenfy

Expansion Opportunities and Clinical Development

BMS is actively pursuing additional indications for Cobenfy to drive long-term growth. A key opportunity lies in Alzheimer's disease psychosis, with the Adept-2 trial results expected later this year. This study is the first of three phase 3 trials in this indication, with BMS requiring positive outcomes from two of the three trials to file with the FDA.

Investor concerns have arisen following recent management comments about clinical trial site reviews. However, CEO Chris Boerner attempted to allay these fears, stating, "I wouldn't read too much into it, other than to say that there's a lot of focus on us being able to deliver on each of the stages of our strategy."

The newly appointed Chief Medical Officer, Cristian Massacesi, highlighted the rapid progress of Cobenfy's development program, mentioning 14 ongoing or soon-to-be-activated studies, including 10 pivotal trials.

Industry-Wide Challenges and Policy Environment

Beyond Cobenfy, BMS faces a dynamic policy environment both in the United States and internationally. The pharmaceutical industry is grappling with pricing pressures, as evidenced by recent "most favored nation" drug pricing deals signed by Pfizer, AstraZeneca, and EMD Serono with the Trump administration.

Boerner addressed these challenges, stating, "We continue to actively engage with the administration. I would characterize those discussions as frequent and, while not always fully aligned, they're always constructive and thought-provoking on both sides."

The CEO emphasized the need for equalization of drug prices globally, advocating for lower U.S. prices and higher ex-U.S. prices while preserving the ecosystem for innovation in the United States. Progress has been noted in some markets, such as the UK, but Boerner stressed that "more needs to be done."