Shares of Bristol-Myers Squibb (BMY - Free Report) fell more than 17% in morning trade Friday after its cancer drug failed to meet targets in a late-stage study.
The company released few details of the study, called Checkmate-026, but it said that it had not met its primary endpoint of improvement in progression-free survival. The drug it was testing, Opdivo, has already been approved to treat some types of cancer, but the company was trying to see if it would be successful in treating advanced non-small cell lung cancer.
Company CEO Giovanni Caforio said in a release that he was “disappointed” with the result with the result but management remains “committed to improving patient outcomes through our comprehensive development program.”
While BMY was falling, shares of its biggest rival Merck (MRK - Free Report) jumped more than 10% at one point, as their drug Keytruda that competes with Opdivo succeeded in a similar trial recently. It should be noted though. Merck played it a bit safer in the patient population it chose, targeting “high expressors” of the PD-L1 ligand, which both Keytruda and Opdivo target through inhibition of the PD-1 protein in cancer cells. Bristol-Meyers went for a broader patient population, potentially winning in a bigger market but increasing its risk for failure.
With the opening decrease of 17%, Bristol Meyers lost about $21 billion in market cap. Year-to-date shares of the company are more than 8% lower. BMY currently has a Zacks Rank #3 (Hold). MRK is currently also a Zacks Rank #3 (Hold), but shares of the company are up more than 16% so far this year.
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Shares of Bristol-Myers Squibb (BMY - Free Report) fell more than 17% in morning trade Friday after its cancer drug failed to meet targets in a late-stage study.
The company released few details of the study, called Checkmate-026, but it said that it had not met its primary endpoint of improvement in progression-free survival. The drug it was testing, Opdivo, has already been approved to treat some types of cancer, but the company was trying to see if it would be successful in treating advanced non-small cell lung cancer.
Company CEO Giovanni Caforio said in a release that he was “disappointed” with the result with the result but management remains “committed to improving patient outcomes through our comprehensive development program.”
While BMY was falling, shares of its biggest rival Merck (MRK - Free Report) jumped more than 10% at one point, as their drug Keytruda that competes with Opdivo succeeded in a similar trial recently. It should be noted though. Merck played it a bit safer in the patient population it chose, targeting “high expressors” of the PD-L1 ligand, which both Keytruda and Opdivo target through inhibition of the PD-1 protein in cancer cells. Bristol-Meyers went for a broader patient population, potentially winning in a bigger market but increasing its risk for failure.
With the opening decrease of 17%, Bristol Meyers lost about $21 billion in market cap. Year-to-date shares of the company are more than 8% lower. BMY currently has a Zacks Rank #3 (Hold). MRK is currently also a Zacks Rank #3 (Hold), but shares of the company are up more than 16% so far this year.
Check Out This Week's Friday Finish Line Podcast, To Get Our Take On This Week's Biggest Financial Stories!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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