BMS Pushes Forward with Cobenfy Despite Setbacks, Raises 2025 Guidance

Bristol Myers Squibb (BMS) remains optimistic about the future of its schizophrenia drug Cobenfy, despite recent clinical setbacks. The pharmaceutical giant is gearing up for new trials and potential indications while reporting mixed financial results for the first quarter of 2025.

Cobenfy's Mixed Results and Future Plans

Cobenfy, the centerpiece of BMS's $14 billion acquisition of Karuna Therapeutics, recently failed to demonstrate superior improvement over placebo in a phase 3 study as an adjunctive treatment for inadequately controlled schizophrenia. Despite this setback, BMS CEO Chris Boerner emphasized the drug's "encouraging" data and "noteworthy improvement" for most schizophrenia patients.

The company plans to forge ahead with Cobenfy's development, focusing on its potential as a monotherapy, which accounts for 70% to 80% of the schizophrenia market. BMS is also awaiting phase 3 data for Cobenfy in Alzheimer's disease psychosis and plans to initiate seven phase 3 trials across three new indications: Alzheimer's agitation, Alzheimer's cognition impairment, and bipolar I.

Adam Lenkowsky, BMS's chief commercialization officer, reported that Cobenfy generated $27 million in sales during Q1 2025, with 40% to 50% of prescriptions now occurring in second and third-line treatments. Analysts from William Blair and Edward Jones noted that the drug appears to be off to a "nice start" despite recent clinical challenges.

Financial Performance and 2025 Outlook

BMS reported first-quarter revenues of $11.2 billion for 2025, representing a 6% year-over-year decline. U.S. revenues fell by 7%, while international sales dropped 2%. The company attributed this decline primarily to generic competition for legacy drugs such as Revlimid, Pomalyst, Sprycel, and Abraxane.

However, BMS's portfolio of newer therapies, including Opdivo, Breyanzi, Reblozyl, Camzyos, and Cobenfy, saw a 16% growth in sales, reaching $5.6 billion for the quarter. This strong performance, coupled with better-than-expected sales from legacy products, has led BMS to raise its 2025 sales guidance from approximately $45.5 billion to a range of $45.8 billion to $46.8 billion.

Analysts at William Blair noted that Revlimid's Q1 sales of $936 million exceeded expectations, indicating that generic erosion for the drug has been "lumpy and variable." The updated forecast takes into account the impact of retaliatory tariffs from China but does not yet factor in potential pharmaceutical tariffs.