Core Insights - Bristol Myers (BMY) received FDA approval for Cobenfy, an oral medication for schizophrenia, in September 2024, expanding its portfolio and validating the acquisition of Karuna Therapeutics [1][10] - Cobenfy represents a new pharmacological approach to treating schizophrenia, with initial sales of $62 million in the first half of 2025 and expectations for higher sales in the second half [2][10] - The company is conducting registrational trials for Cobenfy in Alzheimer's disease and bipolar 1 disorder, aiming for label expansions to drive growth [3][10] - Despite the approval, BMY reported disappointing results from the phase III ARISE study, where Cobenfy did not meet the primary endpoint for statistical significance [4] - BMY is focusing on new drugs to stabilize revenue as legacy products face generic competition [5] Competition Landscape - AbbVie (ABBV) is developing emraclidine for schizophrenia, but its phase II trials did not meet primary endpoints [7] - Reviva Pharmaceuticals is evaluating brilaroxazine for schizophrenia, with positive results from a recent study and plans to discuss FDA approval in late 2025 [8] Financial Performance - BMY's shares have decreased by 14.5% year-to-date, contrasting with the industry's growth of 3.3% [9] - BMY is trading at a discount compared to the large-cap pharma industry, with a price/earnings ratio of 7.78x forward earnings, lower than the industry average of 14.56x [11] - The bottom-line estimate for 2025 has increased to $6.50 from $6.37, while the estimate for 2026 has risen to $6.07 from $6.02 [13]

Group 1: AbbVie - AbbVie experienced a significant drop in share price following a clinical setback for emraclidine, an investigational schizophrenia treatment acquired for $8.7 billion [3] - Despite the setback, AbbVie has shown strong financial performance, with 2024 revenue reaching $56.3 billion, a 3.7% year-over-year increase, which is impressive given the recent loss of patent exclusivity for Humira [5] - AbbVie has a robust pipeline with several dozen programs and has entered a partnership with Gubra A/S to develop a weight loss therapy, indicating potential for future growth [6] - AbbVie is recognized as a Dividend King, having increased its dividends by 310% since splitting from Abbott, with a forward yield of 3.1% [7] Group 2: Abbott Laboratories - Abbott Laboratories operates in multiple healthcare sectors, including medical devices, nutrition, pharmaceuticals, and diagnostics, and is a leader in several markets [8] - The company has a strong culture of innovation and has successfully navigated the highly regulated healthcare industry, providing steady and reliable financial results [9] - Abbott's FreeStyle Libre continuous glucose monitoring system has significant growth potential, with only 1% of adults with diabetes globally using CGM technology as of last year [10] - Abbott has a track record of increasing payouts annually for 53 consecutive years, with a forward yield of 1.9%, making it a solid option for income-focused investors [11]