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Can BMYs Neuroscience Portfolio Help to Diversify Its Business?
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Key Takeaways
Bristol Myers secured Fast Track status for BMS-986446, its Alzheimer's antibody in phase II trials
Cobenfy, approved for schizophrenia, posted $62M in H1 sales and is under study for new indications.
BMY's neuroscience pipeline targets Alzheimer's, bipolar disorder and other neurodegenerative diseases
Bristol Myers (BMY - Free Report) is looking to expand its pipeline, as the legacy portfolio is being adversely impacted due to the continued generic impact on Revlimid, Pomalyst, Sprycel and Abraxane.
The FDA recently granted Fast Track Designation to BMS-986446, a potential best-in-class anti-microtubule binding region-tau (anti-MTBR-tau) antibody. The candidate is currently in phase II development for the treatment of early Alzheimer’s disease.
This designation recognizes the potential of anti-MTBR tau to be an important treatment option for patients with Alzheimer’s disease.
BMY’s neuroscience portfolio got a boost with the FDA approval for xanomeline and trospium chloride (formerly KarXT), an oral medication for the treatment of schizophrenia in adults, in September 2024. The drug was approved under the brand name Cobenfy.
Cobenfy represents the first new pharmacological approach to treating schizophrenia in decades. The initial uptake is encouraging, with sales of $62 million in the first half of 2025. BMY expects sales to come in higher in the second half of the year than in the first half.
The company has ongoing registrational trials for Cobenfy in Alzheimer's disease patients. These include studies in Alzheimer's psychosis, agitation and cognitive impairment. In addition, enrolment is ongoing in a phase III study in bipolar 1 disorder.
The drug is anticipated to become a meaningful growth driver for BMY’s top line as it pursues label expansions across new indications.
BMY’s neuroscience pipeline also includes candidates for neurodegenerative diseases (BMS-986495) and other candidates for multiple sclerosis, and mood and anxiety disorders.
Competition for BMY’s Neuroscience Drugs/Candidates
Developing treatments for diseases like Alzheimer’s disease is a complex affair. BMY’s Alzheimer’s disease candidates will face competition from approved products like Eli Lilly’s (LLY - Free Report) Kinsula, and Biogen (BIIB - Free Report) and Eisai’s Leqembi upon a potential approval.
Last year, Eli Lilly won FDA approval for Kisunla (donanemab-azbt, 350 mg/20 mL once-monthly injection for IV infusion) for adults with early symptomatic Alzheimer's disease, which includes people with mild cognitive impairment as well as people with the mild dementia stage, with confirmed amyloid pathology.
Lilly continues to study donanemab in multiple clinical trials, including TRAILBLAZER-ALZ 3, which is evaluating the safety and efficacy of donanemab in patients with preclinical Alzheimer's disease to determine if it reduces the risk of progression to symptomatic the disease.
Biogen and Eisai’s Leqembi is indicated for the treatment of Alzheimer's disease. BIIB and Eisai recently won FDA approval for once-weekly lecanemab-irmb subcutaneous injection.
BMY’s Price Performance, Valuation and Estimates
Shares of Bristol Myers have lost 17.1% year to date against the industry’s growth of 10.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, BMY is trading at a discount to the large-cap pharma industry. Going by the price/earnings ratio, BMY’s shares currently trade at 7.24X forward earnings, lower than its mean of 8.45X and the large-cap pharma industry’s 15.87X.
Image Source: Zacks Investment Research
The bottom-line estimate for 2025 has moved north to $6.51 from $6.46 in the past 60 days, while that for 2026 has moved south to $6.06 from $6.07 in the same timeframe.
Image: Shutterstock
Can BMYs Neuroscience Portfolio Help to Diversify Its Business?
Key Takeaways
Bristol Myers (BMY - Free Report) is looking to expand its pipeline, as the legacy portfolio is being adversely impacted due to the continued generic impact on Revlimid, Pomalyst, Sprycel and Abraxane.
The FDA recently granted Fast Track Designation to BMS-986446, a potential best-in-class anti-microtubule binding region-tau (anti-MTBR-tau) antibody. The candidate is currently in phase II development for the treatment of early Alzheimer’s disease.
This designation recognizes the potential of anti-MTBR tau to be an important treatment option for patients with Alzheimer’s disease.
BMY’s neuroscience portfolio got a boost with the FDA approval for xanomeline and trospium chloride (formerly KarXT), an oral medication for the treatment of schizophrenia in adults, in September 2024. The drug was approved under the brand name Cobenfy.
Cobenfy represents the first new pharmacological approach to treating schizophrenia in decades. The initial uptake is encouraging, with sales of $62 million in the first half of 2025. BMY expects sales to come in higher in the second half of the year than in the first half.
The company has ongoing registrational trials for Cobenfy in Alzheimer's disease patients. These include studies in Alzheimer's psychosis, agitation and cognitive impairment. In addition, enrolment is ongoing in a phase III study in bipolar 1 disorder.
The drug is anticipated to become a meaningful growth driver for BMY’s top line as it pursues label expansions across new indications.
BMY’s neuroscience pipeline also includes candidates for neurodegenerative diseases (BMS-986495) and other candidates for multiple sclerosis, and mood and anxiety disorders.
Competition for BMY’s Neuroscience Drugs/Candidates
Developing treatments for diseases like Alzheimer’s disease is a complex affair. BMY’s Alzheimer’s disease candidates will face competition from approved products like Eli Lilly’s (LLY - Free Report) Kinsula, and Biogen (BIIB - Free Report) and Eisai’s Leqembi upon a potential approval.
Last year, Eli Lilly won FDA approval for Kisunla (donanemab-azbt, 350 mg/20 mL once-monthly injection for IV infusion) for adults with early symptomatic Alzheimer's disease, which includes people with mild cognitive impairment as well as people with the mild dementia stage, with confirmed amyloid pathology.
Lilly continues to study donanemab in multiple clinical trials, including TRAILBLAZER-ALZ 3, which is evaluating the safety and efficacy of donanemab in patients with preclinical Alzheimer's disease to determine if it reduces the risk of progression to symptomatic the disease.
Biogen and Eisai’s Leqembi is indicated for the treatment of Alzheimer's disease. BIIB and Eisai recently won FDA approval for once-weekly lecanemab-irmb subcutaneous injection.
BMY’s Price Performance, Valuation and Estimates
Shares of Bristol Myers have lost 17.1% year to date against the industry’s growth of 10.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, BMY is trading at a discount to the large-cap pharma industry. Going by the price/earnings ratio, BMY’s shares currently trade at 7.24X forward earnings, lower than its mean of 8.45X and the large-cap pharma industry’s 15.87X.
Image Source: Zacks Investment Research
The bottom-line estimate for 2025 has moved north to $6.51 from $6.46 in the past 60 days, while that for 2026 has moved south to $6.06 from $6.07 in the same timeframe.
Image Source: Zacks Investment Research
BMY currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.