Bristol Myers faces challenges as Cobenfy sales surpass expectations

In the United States, Bristol Myers Squibb reported its first-quarter earnings on April 24, 2025, which included adjusted earnings per share of $1.80, surpassing analysts' expectations of $1.49. The company attributed its earnings boost to strong performance from its portfolio of growth drugs, particularly Cobenfy, despite the challenges posed by upcoming generic competition for some legacy medications. Cobenfy, a schizophrenia treatment, generated sales of $27 million, higher than analysts’ projected figures of $17 million. During the earnings call, executives expressed cautious optimism regarding Cobenfy's market potential, particularly after a recent trial aimed at positioning the drug as an add-on therapy for schizophrenia failed to meet its objectives. The trial's disappointing results raised questions about the drug's future applications, including its efficacy for treating Alzheimer's disease psychosis. Despite this setback, the company remains committed to Cobenfy as a standalone treatment, which they believe captures a significant portion of the market. Additionally, the company raised its guidance for 2025 on several key metrics, although only limited recognition from investors has occurred due to explanations related to foreign exchange benefits and anticipated revenue from the legacy portfolio. Bristol Myers continues to navigate the impacts of impending patent expirations for older drugs like Eliquis and Revlimid, as well as address concerns about tariffs raised during the call. The executives assured investors that they possess flexibility within their manufacturing network to adapt to any potential tariff changes. In summary, while uncertainty looms over the efficacy of Cobenfy in add-on therapy and the competition posed by generics, Bristol Myers Squibb's robust sales figures for the first quarter signify that the company has a solid base from which to confront these challenges.