Bristol Myers Squibb Remains Optimistic About Cobenfy Despite Challenges

Bristol Myers Squibb (BMS) executives continue to express confidence in their novel antipsychotic drug Cobenfy, despite recent setbacks and signs of slowing momentum. The drug, acquired through a $14 billion deal, faces hurdles but maintains potential for growth in multiple indications.

Mixed Results and Market Reception

Cobenfy recently failed a phase 3 trial as an adjunctive treatment for inadequately controlled schizophrenia. Additionally, new-to-brand prescription growth appears to be moderating as the second quarter nears its end, according to Goldman Sachs analyst Asad Haider.

Despite these challenges, BMS CEO Chris Boerner and Chief Commercialization Officer Adam Lenkowsky remain bullish on Cobenfy's prospects. Boerner cited positive feedback from physicians regarding the drug's efficacy on positive and negative symptoms, as well as cognitive benefits in schizophrenia patients.

Lenkowsky emphasized that the failed Arise trial has "zero impact" on Cobenfy's commercial uptake "in the short term or in the long term." He noted that the company has not ascribed any sales projections to Cobenfy's adjunctive use, and that awareness of the setback is limited primarily to trial investigators.

Expansion Plans and Ongoing Studies

BMS is actively pursuing Cobenfy's potential beyond schizophrenia. The company has initiated several programs to maximize opportunities in other indications:

1. Three ongoing studies in Alzheimer's disease psychosis, with the first (Adept-2) expected to report results this year.
2. Seven new phase 3 trials launching in various indications, including:
   • Alzheimer's agitation
   • Alzheimer's cognition
   • Bipolar disorder
   • Irritability associated with autism
   • A new formulation

Lenkowsky highlighted that these studies position Cobenfy for potential data readouts every year until the end of the decade, potentially contributing significantly to BMS's growth in the latter part of the decade and beyond.

Commercial Strategy and Market Adoption

Cobenfy's launch is reportedly tracking in line with expectations, having surpassed 30,000 total prescriptions since its FDA approval in late September. However, IQVIA data analyzed by Leerink Partners showed that weekly total prescriptions remained largely flat at 1,800 for most of May before dipping to about 1,700 toward the end of the month.

Lenkowsky acknowledged the challenges in changing long-standing prescribing habits, noting that it will take time to increase the number of prescribers and shift doctors away from decades-old generic dopamine D2 receptor antagonists. To address this, BMS plans to:

1. Upsize field teams to improve reach and frequency
2. Conduct studies to inform physicians on optimal patient switching strategies and side effect management
3. Continue emphasizing Cobenfy's efficacy profile and cognitive benefits to drive adoption

While some doctors have reported positive experiences with Cobenfy, others have questioned its real-world efficacy in treatment-resistant patients and whether it justifies the twice-daily dosing and high cost. BMS remains committed to demonstrating the drug's value and expanding its use across multiple indications.