Bristol-Myers Hits 14-Month High After AbbVie’s Schizophrenia Drug Fails, Boosting Retail Sentiment

Bristol Myers Squibb ($BMY) stock rocketed over 11% in early morning trading on Monday to hit a 14-month high of $61.08 after AbbVie's ($ABBV) experimental schizophrenia treatment failed in a pair of mid-stage studies.

Deutsche Bank has also increased its price target on Bristol Myers to $55 from $48.

The last time Bristol Myers’ shares were at this level was in September last year, when the stock had fallen after the company missed earnings and revenue estimates in its second-quarter results. 

The rally was fueled by AbbVie’s setback with its schizophrenia drug, Emraclidine, which failed to show efficacy in two Phase 2 trials. 

The studies tested the drug in patients suffering from acute exacerbations of psychotic symptoms, but after six weeks, those who received Emraclidine showed no meaningful improvement compared to those on a placebo.

The news strengthens the outlook for Bristol Myers' own schizophrenia treatment, Cobenfy, which was granted FDA approval in September.  

Bristol Myers acquired Karuna Therapeutics for $14 billion earlier this year to bring Cobenfy to market, positioning it as a leading treatment in the field.

AbbVie had been positioning Emraclidine to compete with Cobenfy, but with this setback, Bristol Myers’ drug now stands as the leading treatment option in this space.

Retail sentiment around Bristol Myers’ has improved to ‘bullish’ (63/100) accompanied by ‘extremely high’ (75/100) message volume on Monday.

Shares of Bristol Meyers’ have gained 14% this year so far, while AbbVie’s stock is up 8% year-to-date.

For updates and corrections email newsroom@stocktwits.com. 

Read more: AbbVie Stock Declines After Schizophrenia Drug Trials Miss Mark, But Retail Stays Stoic

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