Bristol-Myers Squibb Stock Dips 3.7% as Opdualag Trial Misses Key Milestone

Recent developments surrounding Bristol-Myers Squibb (BMS) have seen the company's stock experience a decline, with recent reports highlighting a 3.70% drop on February 14, marking a consecutive two-day decrease. This follows the company's announcement on February 13 indicating that the Phase III RELATIVITY-098 trial did not meet its primary endpoint of recurrence-free survival (RFS). This study was evaluating the efficacy and safety of Opdualag, a combination of nivolumab and relatlimab, compared to nivolumab monotherapy in patients with completely resected Stage III to IV melanoma.

Opdualag, which is noted as the first approved PD-1 and LAG-3 combination antibody therapy, received FDA approval in March 2022 for treating unresectable or metastatic melanoma in patients aged 12 years and older. By targeting two immune checkpoint pathways, the therapy aims to enhance T cell activity and boost anti-tumor responses.

BMS expressed disappointment over RELATIVITY-098's outcomes. Jeffrey Walch, the global project leader for Opdualag at BMS, highlighted that the trial's results fall short of the therapeutic improvements seen in advanced melanoma. Walch emphasized that Opdualag remains a frontline standard of care for patients with unresectable or metastatic melanoma, and the company continues to explore its potential across various cancer types, including non-small cell lung cancer.

In parallel, BMS is focused on strategic cost reduction maneuvers. Following an earlier goal to slash $1.5 billion in expenses by the end of 2025, BMS recently unveiled an aim to reduce costs by an additional $2 billion by 2027. This cost-cutting initiative is driven by organizational changes and enhanced operational efficiencies, facilitating the company's investments in high-growth products and promising scientific areas.

Financially, BMS has reported a total revenue of $48.3 billion for 2024, marking a 7% growth. However, the company anticipates that mature products could face an 18%-20% revenue decrease, projecting a total revenue of approximately $45.5 billion for 2025. This decline in mature product income underscores the challenges BMS faces amidst the impending patent cliffs.