Bristol Myers Squibb shares rise after schizophrenia drug receives FDA approval

Shares of Bristol Myers Squibb (BMY) rose on Friday, a day after the Food and Drug Administration (FDA) approved the use of what the drug company called the first treatment for schizophrenia in decades.

The company said Cobenfy for adults uses “a fundamentally new approach to treating schizophrenia” by targeting specific receptors in the brain without blocking others. It states that approximately 2.8 million people in the United States suffer from the disease and that with the current standard of care, “up to 60% of people experience inadequate improvement in symptoms or intolerable side effects during therapy.”

CEO says drug has 'potential to change treatment paradigm'

Chris Boerner, Chief Executive Officer (CEO), said that the regulatory approval of Cobenfy “represents an important milestone for the community where, after more than 30 years, there is now a completely new pharmacological approach to schizophrenia – one that has the potential “to change the treatment paradigm.”

Dr. Rishi Kakar, a researcher in the drug's clinical trials, called the approval “a transformative moment” in the treatment of the disease, as drugs in the past have targeted the same primary signaling pathways in the brain and Cobenfy offers sufferers “a new option.” ”

Shares of Bristol Myers Squibb rose sharply in premarket trading, rising 2% about 30 minutes into Friday's session, but remain slightly negative for 2024.