Bristol-Myers Squibb's Novel Schizophrenia Drug Receives FDA Approval; BMY stock is poised for a breakout

Bristol-Myers Squibb (BMY) received Food and Drug Administration approval late Thursday for its novel schizophrenia drug Cobenfy. BMY stock jumped early Friday, signaling a breakout at the open.

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Cobenfy, formerly known as KarXT, is the first drug to treat the mental disorder that does not directly block dopamine. Existing medications that block dopamine have serious side effects that cause most patients to stop taking their medications.

Cobenfy comes from Karuna Therapeutics, which was acquired by Bristol Myers for $14 billion.

The twice-daily pill is expected to be available at the end of October. According to Bristol Myers Squibb, it will cost $1,850 per month or $22,500 per year, before insurance and other discounts.

BMY stock

Bristol-Myers shares rose 5.3% to 52.78 before the start of trading. BMY stock is in a flat base with a 51.19 buy point, mostly above the 200-day line. The base follows a recovery from an 11-year low.

Please follow Ed Carson in threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.

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