Terence Flynn, an analyst from Morgan Stanley, maintained the Sell rating on Bristol-Myers Squibb. The associated price target remains the same with $36.00.
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Terence Flynn’s rating is based on several factors surrounding Bristol-Myers Squibb’s current situation with its key product, Cobenfy. The company is facing challenges with its Phase 3 ADEPT-2 trial for Alzheimer’s Disease Psychosis, where irregularities in trial execution were identified at certain sites. This has led to the exclusion of some patient data from the primary analysis and a recommendation to continue enrolling more patients, delaying the trial’s expected completion to the end of 2026.
These developments raise concerns about the reliability and execution of the trial, which is crucial for Cobenfy’s approval for this indication. Additionally, while the company aims to expand Cobenfy’s label across multiple indications, the uncertainty surrounding the trial outcomes and the potential impact on future sales projections contribute to the Sell rating. The risk-adjusted sales forecast for Cobenfy in Alzheimer’s Disease Psychosis is less certain, adding to the cautious outlook on Bristol-Myers Squibb’s stock.