BMS' Cobenfy Shows Steady Growth in Schizophrenia, Eyes Expansion into Alzheimer's

Bristol Myers Squibb's (BMS) novel schizophrenia medication, Cobenfy, has completed its first year on the market with sales figures meeting expectations, though investors remain cautious about its future trajectory. Meanwhile, the company is navigating a complex policy landscape and preparing for potential expansion into new indications.

Cobenfy's First-Year Performance and Market Strategy

Cobenfy, approved by the FDA for schizophrenia treatment in September 2024, generated third-quarter sales of $43 million, slightly below Wall Street's expectations of $44 million. This represents a modest increase from the second quarter's $35 million, indicating what BMS CEO Chris Boerner describes as "steady growth."

Adam Lenkowsky, BMS's chief commercialization officer, emphasized the challenges of establishing a new treatment paradigm in an entrenched market dominated by dopamine D2 receptor antagonists for three decades. Despite this, Cobenfy has surpassed 2,400 weekly total scripts, outpacing recently launched analogs in the schizophrenia space.

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 transitioning patients from D2 drugs to Cobenfy

Alzheimer's Disease Psychosis: A Key Expansion Opportunity

Investors have expressed concern about Cobenfy's potential expansion into Alzheimer's disease psychosis following recent management comments. The company is currently conducting the Adept-2 trial, the first of three phase 3 studies in this indication, with results expected this year.

BMS's new Chief Medical Officer, Cristian Massacesi, highlighted the rapid progress of Cobenfy's development program, citing 14 ongoing or soon-to-be-activated studies, including 10 pivotal trials. The company will need positive outcomes from two of the three Alzheimer's disease psychosis trials to file with the FDA.

CEO Boerner attempted to assuage investor concerns, 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."

Navigating a Dynamic Policy Environment

BMS, like other pharmaceutical companies, is grappling with a rapidly evolving policy landscape both in the United States and internationally. Boerner addressed the recent "most favored nation" drug pricing deals signed by competitors Pfizer, AstraZeneca, and Merck KGaA's EMD Serono with the Trump administration.

While BMS has not yet entered into such an agreement, Boerner emphasized ongoing constructive discussions with the administration. He acknowledged the need for price equalization, stating, "U.S. prices need to come down. We're sharing ideas to do that. Ex-U.S. prices need to come up."

The company aims to balance these pricing pressures with the need to preserve the ecosystem for innovation in the United States. Recent progress in markets like the UK has been noted, but Boerner stressed that "more needs to be done" to achieve global price parity while maintaining incentives for pharmaceutical research and development.