Bristol-Myers Squibb stock jumps on schizophrenia drug approval

By Steve Goldstein

FDA approves what is now called Cobenfy

Bristol-Myers Squibb shares rose in premarket trade on Friday after the U.S. Food and Drug Administration approved a schizophrenia drug.

Bristol-Myers shares (BMY) jumped 6% to a five-month high in premarket trade.

The FDA approved Cobenfy - previously called KarXT - which the drugmaker says represents the first new pharmacological approach for schizophrenia in 30 years.

Citigroup last month had forecast peak sales of $7.5 billion for the drug.

"We expect Cobenfy and potentially the class to transform the treatment landscape, given the robust efficacy and more benign safety/tolerability profile relative to atypical drugs, which currently dominate the market," said analysts at Mizuho Securities USA.

Neurocrine Biosciences (NBIX) has a similar schizophrenia drug under development.

-Steve Goldstein

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09-27-24 0432ET

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