synopsis

A post-hoc analysis showed more pronounced effects among patients on risperidone compared to those on other antipsychotics, the company said.

Shares of Bristol Myers Squibb (BMY) fell more than 4% after the closing bell on Tuesday after the biopharma company reported underwhelming topline results from a late-stage clinical trial.

The company’s Phase 3 trial of Cobenfy as an adjunctive treatment for adults with inadequately controlled schizophrenia showed a two-point reduction on a benchmark scale versus placebo in the sixth week, but the improvement did not reach statistical significance for the primary endpoint.

Despite the miss, Bristol Myers said preliminary analyses indicated that Cobenfy may benefit certain subgroups of patients. 

A post-hoc analysis showed more pronounced effects among patients on risperidone compared to those on other antipsychotics, the company said. 

The drug's safety and tolerability were consistent with previous trials.

Bristol Myers Squibb plans further analysis and discussions with regulators to determine next steps. 

On Stocktwits, sentiment for BMY remained ‘extremely bullish’ late on Tuesday amid a 287% surge in message volume.

BMY sentiment and message volume as of April 22. | source: Stocktwits

"I appreciate the dip buy and don't mind holding long term," said one user.

Another user pointed to a bullish analyst note on the stock ahead of quarterly earnings on Thursday.

Bristol Myers is expected to report first-quarter (Q1) adjusted earnings per share of $1.50 on revenue of $10.73 billion, according to Stocktwits data. 

On Tuesday, The Fly reported that Piper Sandler initiated coverage of BMY with an 'Overweight' rating and $65 price target, saying the company is reinventing itself to a significant extent amid a substantial loss of exclusivity exposure. 

Amid a chaotic macroeconomic backdrop, Piper believes BMY shares are positioned well, even as the loss of patent exclusivity for its blood thinner, Eliquis, looms. 

Piper affirmed its bullishness based on the company's cancer drug franchise, younger commercial portfolio, and new molecular entity-heavy late-stage pipeline. 

BMY's stock is down over 12% this year.

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