Bristol Myers' Schizophrenia Drug Cobenfy Shows Strong Start, Company Faces Mixed Results

Bristol Myers Squibb's new schizophrenia medication, Cobenfy, has demonstrated a promising launch in its first full quarter on the market, while the company grapples with revenue challenges and clinical setbacks. The pharmaceutical giant's latest earnings report reveals a complex landscape of successes and hurdles as it navigates patent expirations and explores new treatment avenues.

Cobenfy Launch Exceeds Expectations

Cobenfy, Bristol Myers' closely watched schizophrenia drug, recorded $27 million in net sales during the first quarter of 2025, surpassing Wall Street expectations by 48%. Chief Financial Officer David Elkins described the launch as "off to a solid start," with weekly prescription numbers tracking ahead of all branded specific benchmarks. As of April 11, the weekly prescription count stood at 1,655.

The drug's performance is crucial for Bristol Myers, which acquired Cobenfy's developer, Karuna Therapeutics, for $14 billion. Analysts have high expectations for the medication, viewing it as a potential blockbuster to offset revenue losses from other products facing generic competition.

Mixed Results and Future Prospects

While Cobenfy's initial sales are encouraging, Bristol Myers faced a setback in its efforts to expand the drug's use. A clinical trial testing Cobenfy as an adjunctive treatment for schizophrenia patients already on antipsychotics failed to show significant benefits over placebo. This result potentially impacts billions in projected revenue, according to some analysts.

Despite this setback, Bristol Myers remains optimistic about Cobenfy's prospects. Chief Commercialization Officer Adam Lenkowsky emphasized that schizophrenia monotherapy remains the "most significant" opportunity, accounting for 70% to 80% of patients treated with Cobenfy. The company is also exploring Cobenfy's potential in treating bipolar disorder, autism spectrum disorder, and symptoms associated with Alzheimer's disease.

Financial Outlook and Industry Challenges

Bristol Myers reported overall revenue of $11.6 billion for the first quarter, a 6% decline from the previous year. This drop reflects the impact of generic competition on key products like Revlimid. However, the company has increased its full-year revenue forecast by 2%, projecting between $45.8 billion and $46.8 billion.

The pharmaceutical industry faces potential challenges from evolving trade policies, particularly regarding tariffs. CEO Chris Boerner addressed investor concerns about the company's exposure to these risks, stating that current tariffs, especially those related to China, have been factored into their guidance. However, he noted it was too early to provide specifics on potential impacts to the pharmaceutical sector.

As Bristol Myers navigates these complex market dynamics, the success of new products like Cobenfy becomes increasingly critical to the company's long-term strategy and financial health.