Bristol-Myers Squibb Stock Falls After Results of Cancer Treatment Study Disappoint -- Barrons.com
By Teresa Rivas
Bristol-Myers Squibb stock (ticker: BMY) fell in after-hours trading Wednesday, on the back of disappointing data for a combination cancer treatment with its drugs Opdivo and Yervoy.
The back story. It's already been a tough year for Bristol-Myers. The stock is down 16.8% in 2019 through the close of regular trading Wednesday, and has fallen nearly 27% in the trailing 12-month period. Disappointing drug data has played a role, but most of the decline is because of the company's acquisition of Celgene (CELG). The deal has been a magnet for critics and investor opposition, and has been beset by delays and regulatory issues.
What's new. After the close of regular trading Wednesday, Bristol-Myers reported results from its CheckMate 227 study. The first part of the study met one of its primary goals, with low-dose Yervoy and Opdivo demonstrating superiority to chemotherapy as an initial treatment for non-small cell lung cancer patients with a specific tumor profile.
However, part two of the Phase 3 trial didn't meet its endpoint of overall survival with Opdivo plus chemotherapy versus just chemotherapy in another group of lung cancer patients. Bristol-Myers promised to share complete findings from the study at an coming medical meeting.
Looking ahead. It isn't entirely surprising that Bristol is trading down on the news. Amid Celgene-related concerns, investors are also worried about patent losses for the company, which means there additional hopes are pinned on the company's pipeline. A more robust result may have put investors' minds at ease.
In addition, Opdivo was a steady performer in Bristol-Myers' most recent quarter. A good trial would have opened up a new sales outlet for the drug. The news comes just a month after Bristol-Myers said reported that another Phase 3 trial involving Opdivo also didn't meet its primary endpoint.
Bristol-Myers was down 4.6% to$41.24 in recent trading