Bristol Myers Squibb Faces Challenges with Cobenfy Uptake Despite Strong Q3 Performance

Bristol Myers Squibb (BMS) reported a robust third-quarter performance, with total revenue reaching $12.2 billion, surpassing analyst expectations. However, the pharmaceutical giant is grappling with slower-than-anticipated uptake of its newly approved schizophrenia drug, Cobenfy, while investors eagerly await critical trial results for its potential application in Alzheimer's disease psychosis.

Cobenfy's Slow Start in Schizophrenia Market

Despite being hailed as the first novel drug for schizophrenia in 35 years, Cobenfy's initial sales have fallen short of projections. The drug generated $43 million in Q3, slightly below the consensus estimate of $45 million. BMS executives attributed this sluggish start to the challenge of changing "deeply ingrained D2 [dopamine] prescribing habits" among healthcare providers.

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 is focusing its efforts on educating healthcare professionals about the drug's novel mechanism of action to drive adoption.

Anticipation Builds for Alzheimer's Disease Psychosis Data

While Cobenfy's performance in schizophrenia has been tepid, investors are keenly awaiting results from the Phase III ADEPT-2 trial, which evaluates the drug's efficacy in treating moderate to severe psychosis in Alzheimer's disease patients. The readout, initially expected with the Q3 results, has been delayed due to concerns about trial execution.

BMS is conducting two additional studies in Alzheimer's disease psychosis – ADEPT-4 and ADEPT-1 – with results expected next year. Boerner emphasized the importance of these trials, stating, "We anticipate needing two of these three studies to read out positively to support regulatory approval."

Strong Performance from Growth Portfolio

Despite challenges with Cobenfy, BMS's growth portfolio demonstrated strong performance, contributing $6.9 billion to the company's Q3 revenue. Notable performers included:

• Opdivo (cancer immunotherapy): $2.5 billion
• Breyanzi (CAR T therapy): $359 million, up 58% year-over-year
• Camzyos: $296 million, an increase of 88%

This robust showing led BMS to raise its full-year 2025 revenue guidance to a range of $47.5 billion to $48 billion, up from the previous estimate of $46.5 billion to $47.5 billion.