Boston, MA 01/28/2014 (wallstreetpr) – Bristol-Myers Squibb Co (NYSE:BMY) reports a decline in share value in spite of last week’s more than expected quarterly results. This is because investors are dissatisfied with the slow pace at which the drug maker is moving.
Nivo- Yervoy combo
In a conference call with investors, Bristol-Myers Squibb Co (NYSE:BMY) told that they are no hurry to carry out a late stage trial of the combination of its two high profile cancer treatment drugs. Soon after this news, the shares fell down 6.7%. As of now, Bristol-Myers would proceed with a mid stage study of the drugs before taking them ahead for Phase II lung cancer trial. The study involves two drugs, namely nivolumab and Yervoy and both are concerned with the immune system’s ability to fight cancer. Nivolumab is an experimental medicine and Yervoy is an approved melanoma treatment, both improve the cancer fighting capacity of the body.
Mid-stage trail results
The company is expecting to release the results of Checkmate-012, the mid stage study on the drugs by late May or early June, in a cancer meeting. Investors however expected them to proceed on with the Nivo- Yervoy combination to the next phase and were anticipating the company to announce its plans latest by Jan 25. The delay in the process can be an indication of concern or an unfortunate lack of synergy between the two drugs in combating lung cancer, according to a research note by BMO analyst Alex Arfaei. He further said that Bristol-Myers’ news might be in favor of Merck & Co. Inc. (NYSE:MRK) which is also on similar a road. The rival is developing a drug similar to nivolumab which falls in the same PD-1 inhibitor class.
While reporting its fourth quarter results, Bristol-Myers Squibb Co (NYSE:BMY) had said that it had added advantage from cost cuts and increasing sales of its treatments for blood clots, diabetes and cancer.
