Sales of Cobenfy, a groundbreaking new medication designed to stabilize the mind, reached $10 million in the last quarter of the previous year, meeting the expectations of analysts. Bristol Myers Squibb, the pharmaceutical company that acquired Cobenfy through its acquisition of Karuna Therapeutics for $14 billion, provided an update on the medicine’s launch in a recent earnings report. Cobenfy, which is available in capsule form, was approved by the FDA on September 26 as a treatment for schizophrenia and was introduced to the U.S. market in late October.
According to Bristol Myers, the number of filled prescriptions for Cobenfy had risen to approximately 1,000 per week by the end of January. Adam Lenkowsky, the Chief Commercial Officer, stated during an earnings call that the launch has been successful and the company has made significant progress in achieving its access goals. Bristol Myers has secured over 90% Medicaid access and 80% Medicare access, covering a majority of the population eligible for Cobenfy.
As doctors become more familiar with Cobenfy and Bristol Myers expands its usage, sales and prescriptions are expected to increase. Ongoing trials are being conducted to test Cobenfy’s efficacy in treating Alzheimer’s disease psychosis and as an adjunctive therapy for schizophrenia, with results expected in the coming years. Future studies will focus on Alzheimer’s cognition, bipolar I disorder, and irritability associated with Autism spectrum disorder.
Analyst David Risinger from Leerink Partners predicts a strong performance for Cobenfy throughout the year, with potential annual sales reaching close to $8 billion. Unlike other schizophrenia medications, Cobenfy works by activating muscarinic receptors in the brain to indirectly regulate dopamine levels, providing a new approach to treating the condition.
Bristol Myers reported revenue of $12.3 billion for the fourth quarter and $48.3 billion for the full year, marking increases of 8% and 7% respectively compared to the previous year. However, the company anticipates a revenue decline of nearly 6% in the current year, projecting $45.5 billion in revenue. To offset this decrease, Bristol Myers announced plans to enhance cost-cutting measures to save an additional $2 billion annually by the end of 2027.
Despite the positive developments with Cobenfy, Bristol Myers’ share price experienced a slight decline of around 2% to $59 per share. The company remains optimistic about the future success of Cobenfy and is committed to making it a significant product in their portfolio.
