Bristol Myers Squibb says Alzheimer’s is the biggest market for new schizophrenia drug

Key Points

  • Bristol Myers Squibb sees Alzheimer’s as the largest market for its newly approved schizophrenia drug, Cobenfy, with potential multibillion-dollar revenue.
  • Cobenfy could be the first drug specifically approved for Alzheimer’s-related psychosis, addressing a significant unmet need in the market.
  • The company plans to release late-stage trial data for Cobenfy in Alzheimer’s-related psychosis treatment later this year, with phase three trials for other uses starting in 2025 and 2026.
  • JPMorgan analyst predicts Cobenfy could reach $5 billion in sales by 2030, with peak sales potentially hitting $10 billion across multiple treatment uses.

Summary

Bristol Myers Squibb is focusing on Alzheimer’s disease as the primary market for its newly approved schizophrenia drug, Cobenfy, which was acquired through the $14 billion purchase of Karuna Therapeutics. The company's executives highlighted the drug's potential in treating Alzheimer’s-related psychosis, agitation, and cognition, as well as other conditions like bipolar disorder and autism. With nearly 6 million Alzheimer’s patients in the U.S., and half experiencing psychosis, Cobenfy could fill a critical gap in treatment options, especially since current off-label antipsychotics increase mortality risk. Bristol Myers Squibb plans to share initial late-stage trial results for Alzheimer’s-related psychosis later this year and anticipates starting phase three trials for other uses in the coming years. Analysts from JPMorgan estimate that Cobenfy could generate significant revenue, potentially reaching $5 billion by 2030, offering a substantial financial boost as the company faces patent expirations on other top-selling drugs.

cnbc
January 15, 2025
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