Cautious Outlook on Bristol-Myers Squibb Due to Cobenfy’s Uncertain Future and Reliance on Trial Outcomes

Bristol-Myers Squibb (BMY – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Terence Flynn from Morgan Stanley maintained a Sell rating on the stock and has a $37.00 price target.

Terence Flynn has given his Sell rating due to a combination of factors related to Bristol-Myers Squibb’s current and future prospects. One of the primary concerns is the company’s reliance on Cobenfy, particularly in the context of its high exposure to loss of exclusivity in the latter part of the decade. Although the upcoming ARISE trial data for Cobenfy as an adjunctive therapy in schizophrenia is anticipated, Flynn believes that the more significant catalyst for the stock will be the Alzheimer’s disease psychosis (ADP) data expected later.
The projections for Cobenfy’s sales, including its use in monotherapy and adjunctive settings, are substantial, but the success of these projections heavily depends on future trial outcomes. Flynn notes that if the ARISE trial results are negative or if the drug’s tolerability is less favorable, it could hinder its uptake. Additionally, the necessity for a second ADP trial for approval adds uncertainty to the drug’s future success. These factors contribute to Flynn’s cautious stance and the Sell rating for Bristol-Myers Squibb.