Latest news with #Cobenfy
CNBC
31-07-2025
- Business
- CNBC
We're lowering our price target on Bristol Myers as two key overhangs persist
Bristol Myers Squibb shares dropped Thursday despite a solid quarterly beat and guidance raise, as Wall Street's confidence wavers in the growth trajectory for schizophrenia treatment Cobenfy. Revenue in the second quarter, ended June 30, ticked up 1% to $12.3 billion, topping estimates of $11.4 billion, according to LSEG. Adjusted earnings per share (EPS) of $1.46 outpaced expectations of $1.07 but were down 29% versus the year-ago period. Bottom line While the results were strong overall, and management did raise their outlook for the full year, Bristol Myers shares nonetheless dropped 4% following the release. Most likely, it was a reflection of investors' unwillingness to get too excited about the reported numbers and the road ahead until we get a better sense of the size of the opportunity presented by Cobenfy. The big event is late-stage trial data from a study examining the drug's potential benefit to Alzheimer's psychosis patients, expected to be released later this year. The Cobenfy opportunity came under increased scrutiny earlier this year following a failed phase 3 trial relating to the efficacy of the drug in schizophrenia patients as an add-on treatment. The Cobenfy narrative — at the core of our investment thesis in Bristol Myers — went from being pretty straightforward to a show-me story. On the post-earnings call, management tried to reassure investors about Cobenfy. CFO David Elkins said, "The launch of Cobenfy is tracking, as we expected. Weekly total prescriptions continued to grow, and we expect continued steady growth with sales in the second half of the year higher than the first half." The drug became part of Bristol Myers' offerings after the drugmaker completed its $14 billion acquisition of Karuna Therapeutics in March 2024. While the solid execution seen in Bristol Myers' second quarter gives us reason enough to stick with the stock, for now, we understand the concern regarding the upcoming Cobenfy trial data. We see no reason to add to our position at this time, despite shares trading at less than 7 times the midpoint of the updated full-year EPS guidance and a nearly 6% dividend yield. That yield does pay for our patience, but we can't throw good money after bad. So, as good as the quarter was, the reaction indicates that the stock is most likely a value trap until that trial data is released. We are, therefore, reiterating our hold-equivalent 2 rating and cutting our price target to $55 per share from $60, reflecting the wait-and-see nature of Cobenfy and the sector-wide overhang related to the Trump administration's pharmaceutical policy proposals, including tariffs. Indeed, on Thursday afternoon, President Donald Trump said he asked drugmakers to take a series of actions "within the next 60 days," including extending "most favored nation" pricing to Medicaid. Commentary As we can see in the chart above, the strong headline results can be attributed to broad-based strength throughout Bristol Myers' portfolio. On the call, CEO Christopher Boerner commented that "Cobenfy has delivered strong performance since launch, and we have consistently received positive feedback from physicians. They are seeing firsthand the medicine's differentiated profile with robust efficacy on both positive and negative symptoms and improved cognition." Growth portfolio sales were driven by very strong performance from Breyanzi, Reblozyl and Camzyos. With the patent cliffs hanging over Bristol Myers' legacy portfolio, the market is primarily focused on the performance its basket of newer drugs. Guidance Bristol Myers again positively revised its 2025 full-year guidance: Sales: Now targeting a range of roughly $46.5 billion to $47.5 billion, up from the prior range of $45.8 billion to $46.8 billion, and ahead of the $46.25 billion the Street was expecting, according to LSEG. Driving the $700 million upward revision is strength in the growth portfolio beyond what management was previously expecting, and a smaller-than-previously anticipated decline in the legacy portfolio. Helping the legacy portfolio, worldwide sales of Revlimid are now expected to come in at about $3 billion; Prior guidance called for sales to be at the high end of a $2 billion to $2.5 billion range. However, these positives are slightly offset by a smaller-than-previously expected benefit from foreign exchange dynamics. Those are now expected to benefit the top line by $200 million (versus $250 million previously). Gross margin: Reiterated at roughly 72%. Operating expense: Now expected to be about $16.5 billion, up slightly from the roughly $16.2 billion previously forecast. The increase is attributable to a roughly $300 million increase in business development and growth portfolio investments. Earnings per share: Now targeting a range of $6.35 to $6.65 per share. While that is down from the $6.70 to $7.00 range previously provided, it's important to note that Bristol Myers is now factoring in 57-cent per share headwind relating to in-process research-and-development (IPRD) charges associated with the BioNTech partnership announced during the quarter. Excluding this impact, it appears that earnings guidance would have been revised 22-cents higher, given it was cut by only 35-cents at the midpoint despite the headwind being a 57-cent negative impact. Regardless, this new range is still ahead of $6.24 per share the Street was looking for, according to LSEG. The company is also factoring in $150 million more in royalty and interest income than previously expected. (Jim Cramer's Charitable Trust is long BMY. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Reuters
31-07-2025
- Business
- Reuters
Bristol Myers tops revenue expectations on strength of older drugs, shares fall
July 31 (Reuters) - Bristol Myers Squibb (BMY.N), opens new tab posted much better-than-expected second-quarter results on Thursday on strong sales of its best-selling brands, but failed to convince investors that newer products could drive future growth and shares fell nearly 5%. Revenue in the quarter, which analysts had expected to fall due to the loss of patent protection on some of its products, including blood cancer therapy Revlimid, rose 1% to $12.3 billion. Analysts, on average, were looking for revenue of $11.4 billion, according to LSEG data. The quarterly sales beat was driven by legacy products such as the blood thinner Eliquis, which is expected to face competition from cheaper generics next year, and demand for Revlimid, which has held up better than expected, said Raymond James analyst Sean McCutcheon. However, "investors don't see the beat as an indicator of future growth prospects," McCutcheon said. Sales of Eliquis, which Bristol Myers shares with Pfizer (PFE.N), opens new tab, rose 8% to $3.7 billion in the quarter, while cancer immunotherapy Opdivo brought in $2.6 billion, up 7% from a year ago. Analysts, on average, had forecast sales of $3.3 billion and $2.3 billion, respectively. Revlimid sales fell 38% to $838 million, but still topped analyst estimates by about $300 million. The U.S. drugmaker said it earned $2.9 billion, or $1.46 per share, down from $4.2 billion, or $2.07, a year earlier. Analysts had expected earnings of $1.07 a share. Bristol has been contending with a steep revenue decline from Revlimid, which raked in nearly $13 billion in 2021 but $5.8 billion last year due to generic competition. Some of its other cancer drugs such as Pomalyst, Sprycel and Abraxane are contending with the same issue. Still, Revlimid has performed better than initially feared, and the company now expects 2025 sales of around $3 billion, Chief Commercialization Officer Adam Lenkowsky said. The company had previously said it expected 2025 Revlimid sales to be closer to $2.5 billion. Investors are closely watching Bristol's newer products, including cell therapy Breyanzi and schizophrenia treatment Cobenfy, to gauge whether they can drive the next phase of growth as sales of older blockbuster treatments decline. McCutcheon said company comments suggest data from a trial testing Cobenfy for Alzheimer's disease may come a bit later than previously anticipated - by the end of this year rather than early fourth quarter. The company said it was conducting reviews of trial sites, which could delay reporting of results, but Bristol is still targeting by the end of this year. Bristol Myers raised its full-year revenue forecast to $46.5 billion to $47.5 billion from its prior view of $45.8 billion to $46.8 billion. Last month, Bristol agreed to pay up to $11.1 billion in a partnership deal with Germany's BioNTech ( opens new tab to develop next-generation cancer treatments that could take on rival Merck's (MRK.N), opens new tab best-selling immunotherapy Keytruda. Bristol recorded a charge of 57 cents per share in the second quarter related to the deal. Including the charge, it now expects full-year earnings to be $6.35 to $6.65 a share. Analysts are estimating 2025 earnings of around $6.24. Bristol's 2025 operating expenses forecast of $16.5 billion, up from its previous view of $16.2 billion, could be contributing to the share price decline, Piper Sandler analysts said.
CNBC
31-07-2025
- Business
- CNBC
Why Jim Cramer backs Meta's AI spending — and the latest on Apple and Amazon ahead of earnings
Every weekday the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. ET. Here's a recap of Thursday's key moments. 1. Stocks rose Thursday, with the S & P 500 and Nasdaq hitting fresh all-time highs on the back of strong earnings from a pair of tech giants Wednesday evening. Adding to the optimism, U.S. Treasury Secretary Scott Bessent said Thursday the U.S. has "the makings of a deal" with China. In addition, the U.S. struck a trade agreement with South Korea, imposing a blanket 15% tariff on its imports into the U.S. Meanwhile, shares of Bristol Myers Squibb are down more than 4% despite delivering a beat-and-raise quarter Thursday morning. The drugmaker isn't getting credit for its strong results because investors are focused on the impending outcome of a trial examining schizophrenia drug Cobenfy's ability to treat Alzheimer's psychosis. Until then, we're not buyers on this weakness. 2. Both Microsoft and Meta Platforms reported terrific results Wednesday evening. Microsoft saw robust growth in its Azure cloud business, pushing shares up more than 4% Thursday and lifting its market cap above $4 trillion. Meta reported powerful AI-driven momentum, which unlocked growth in both engagement and advertising, sending the stock up roughly 12% Thursday. CEO Mark Zuckerberg also laid out his vision for developing "superintelligence," or AI that surpasses human intelligence, to empower individuals in their everyday lives. Zuckerberg "wants to win so he's paying big money [for AI talent] … I think it's wise because he's building a brain trust that is trying to think of things that we never thought of," Jim Cramer said. Both tech stalwarts are continuing to invest billions upon billions in AI throughout the rest of the year, adding more fuel the broader AI trade. 3. Looking ahead, there's another big night of earnings with Apple and Amazon both reporting after Thursday's close. "This is not the quarter that I want to own Apple," given the uncertainty around the company's tariff exposure and fear that its lucrative services revenue stream may continue to moderate, Jim said. However, we're just holding the stock for now. Earlier Thursday, we published a closer look at what Apple needs to do to return to Wall Street's good graces. For Amazon, the company's advertising and cloud businesses are likely to be strong based on the strong quarters from Microsoft and Meta. "The real swing factor is going to be e-commerce sales and how they perform there," Director of Portfolio Analysis Jeff Marks said. 4. Stocks covered in Thursday's rapid fire at the end of the video were: Robinhood , Ford , Ebay , Arm Holdings , and CVS . (Jim Cramer's Charitable Trust is long BMY, MSFT, META, AAPL, AMZN. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
CNBC
17-07-2025
- Business
- CNBC
Bristol Myers goes direct-to-consumer on one of its blockbuster drugs. Here's our take
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Market moves: Stocks were higher Thursday as the market continued to make its way through second quarter earnings season. Gains in the technology and industrials sectors were lifting the S & P 500 , while real estate and health care weighed on the index. Job cuts: Amazon cut jobs at its Amazon Web Services cloud computing division, the company confirmed on Thursday. The size and scope of the layoffs were unclear, but workforce reductions could help support margins in the quarters ahead. We're not concerned that this is a warning sign around slowing demand – it's about the company trying to get more efficient. If AI played a role in this, it speaks to the discussion we had on Wednesday's Morning Meeting about how large tech companies — like Dell , Amazon, and Microsoft — have embraced AI and are seeing their operating expenses as a percentage of sales drop, according to Melius Research. The ability to do more with fewer employees is positive for earnings leverage in the years ahead. DTC drugs: Bristol Myers Squibb and Pfizer announced on Thursday that they will begin selling the blood-thinning medication Eliquis directly to patients through their Eliquis 360 support program at a 40% discount to the current list price. Eliquis is one of Bristol-Myers' top-selling drugs. Analysts expect the medication will generate about $14.3 billion of the company's total $46.2 billion of revenue this year. However, Bristol Myers labels the drug as part of its "legacy portfolio" and not its "growth portfolio" since it is expected to face generic competition in the United States in a few years. Importantly, analysts at Leerink do not believe the discount will be a net pricing headwind for either Bristol Myers or Pfizer, as the drug is already heavily rebated to pharmacy benefit managers. The drug companies can circumvent the middlemen with these programs, which is why Bristol Myers' stock isn't lower on this news. Also, selling directly to patients at a lower price should help pharma companies gain much-needed favor with the Trump Administration, especially with the threat of drug pricing reform and tariffs looming. However, we're not going to be buyers of Bristol Myers on this news. We're waiting to make our next decision on the stock until we see the Phase 3 readout of Cobenfy for Alzheimer's psychosis. The data is due sometime in the late third quarter or early fourth quarter, and it will be a make-or-break moment for our thesis. We're hopeful for a successful trial, but we lost a lot of conviction in Cobenfy following its disappointing Phase 3 trial as an adjunctive treatment to atypical antipsychotics in adults with schizophrenia. Up next: Netflix and Interactive Brokers report earnings after Thursday's closing bell. On Friday morning, it's quarterly results from American Express , Charles Schwab , and 3M . We'll be paying most attention to the American Express results as they will provide a read-through into Capital One ahead of its results next week. The 3M quarter is a read-through into DuPont and parts of Honeywell . Friday's economic data includes June housing starts and a preliminary read on the University of Michigan consumer sentiment survey, which also provides participants' 1-year inflation expectations. (Jim Cramer's Charitable Trust is long AMZN, MSFT, BMY, COF, DD, HON. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Medical News Today
07-07-2025
- Health
- Medical News Today
Cobenfy dosing schedule and details
Cobenfy's dosage for schizophrenia is typically 1 oral capsule taken twice per day. Your dosing schedule may vary based on factors that include your symptoms and other medications you may be taking. It is important to take the Cobenfy dosage your doctor (xanomeline/trospium chloride) is a prescription drug used to treat article describes the dosage of Cobenfy, as well as its strengths and how to take it.»Learn more about Cobenfy, including its uses and side of Cobenfy dosage Your doctor will likely start you on a low dosage and adjust it over time to reach the right amount for you. They'll ultimately prescribe the smallest dosage that provides the desired following information describes dosages commonly used or recommended for Cobenfy. Be sure to take the dosage your doctor prescribes for you. They'll determine the best dosage to fit your needs. In some cases, doctors may adjust your dosage from those mentioned formsCobenfy is available as an oral strengthsCobenfy comes in three strengths of:50 milligrams (mg) xanomeline/20 mg trospium chloride100 mg xanomeline/20 mg trospium chloride125 mg xanomeline/30 mg trospium chlorideDosage of Cobenfy for schizophreniaCobenfy is approved to treat schizophrenia. The typical Cobenfy dosage for adults with schizophrenia is 1 capsule taken twice per the first week of treatment, your doctor may gradually increase the strength of your dosage. The recommended dosage schedule is as follows:50 mg xanomeline/20 mg trospium chloride twice per day for at least 2 days, followed by100 mg xanomeline/20 mg trospium chloride twice per day for at least 5 daysThen, you will take 125 mg xanomeline/30 mg trospium chloride twice per day for as long as your doctor recommends, based on your response to treatment and tolerability of the follow your prescribing doctor's instructions. Notify them if you experience any side effects that may prevent you from taking your to take CobenfyYour doctor or pharmacist will advise you how to take Cobenfy. Typically, recommendations for taking Cobenfy include:trying to take the drug around the same time each daytaking your dose at least 1 hour before or 2 hours after a mealswallowing the capsule whole, the capsules should not be crushed, split, opened, or chewedHow long do you take Cobenfy?Cobenfy is usually a long-term treatment. If you and your doctor determine that it's safe and effective for your condition, you'll likely take it long overdoseDo not take more Cobenfy than your doctor prescribes, as this can lead to harmful effects. Symptoms of Cobenfy overdoseSymptoms caused by an overdose of Cobenfy can include:seizuresabdominal pain, diarrhea, or vomitingdizzinessdry mouth or excessive salivachanges in heart rate or blood pressureagitationurinary retentionsweating more than is typicalblurred vision or dry eyesWhat to do in case you take too much CobenfyCall your doctor right away if you think you've taken too much Cobenfy. You can also call 800-222-1222 to reach America's Poison Centers or use its online resource. But if you have severe symptoms, immediately call 911 (or your local emergency number) or go to the nearest emergency Medical News Today has made every effort to make certain that all information is factually correct, comprehensive, and up to date. However, this article should not be used as a substitute for the knowledge and expertise of a licensed healthcare professional. You should always consult your doctor or another healthcare professional before taking any medication. The drug information contained herein is subject to change and is not intended to cover all possible uses, directions, precautions, warnings, drug interactions, allergic reactions, or adverse effects. The absence of warnings or other information for a given drug does not indicate that the drug or drug combination is safe, effective, or appropriate for all patients or all specific uses.
