Will Cobenfy Become a Growth Driver for BMY's Neuroscience Business?

Core Insights - Bristol Myers Squibb (BMY) will continue the phase III ADEPT-2 study on Cobenfy for psychosis associated with Alzheimer's disease, following a review and recommendation from the data monitoring committee [1][10] - The announcement of the continuation of the study has positively impacted investor sentiment, despite the postponement of data readout to next year [2] - Cobenfy, currently approved for schizophrenia treatment, has generated $105 million in sales year to date and is expected to drive growth as it seeks label expansions [3][10] Study and Drug Development - Additional results from the ADEPT program, including ADEPT-1 and ADEPT-4, are expected by the end of 2026, with Cobenfy also being evaluated for agitation in Alzheimer's disease and bipolar 1 disorder [4] - BMY is exploring other candidates for Alzheimer's disease, including BMS-986446, which has received Fast Track Designation from the FDA and is in phase II development [5] Competitive Landscape - BMY's Alzheimer's disease candidates will face competition from existing products such as Eli Lilly's Kisunla and Biogen and Eisai's Leqembi, which have received FDA approvals for early symptomatic Alzheimer's disease [6][7][9] Financial Performance - BMY's shares have decreased by 7.8% year to date, contrasting with the industry's growth of 19.3% [13] - The company is trading at a price/earnings ratio of 8.67x forward earnings, which is lower than the large-cap pharma industry's average of 16.68x [14] - The Zacks Consensus Estimate for 2025 earnings per share has increased, while the estimate for 2026 has decreased [15]