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Bristol Myers Squibb reports setback in lung cancer trial

EditorLina Guerrero
Published 05/10/2024, 04:37 PM
© Reuters.
BMY
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PRINCETON, N.J. - Bristol Myers Squibb (NYSE: NYSE:BMY) disclosed that its Phase 3 CheckMate -73L trial for treating a form of lung cancer did not meet its primary goal. The study evaluated the efficacy of Opdivo in combination with chemoradiotherapy, and subsequent treatment with Opdivo plus Yervoy, in patients with stage III non-small cell lung cancer (NSCLC) that cannot be surgically removed.

The trial aimed to improve progression-free survival (PFS) in patients compared to the current standard of chemoradiotherapy followed by durvalumab. However, the results indicated that adding immunotherapy to the treatment regimen did not enhance PFS outcomes.

Joseph Fiore, the global program lead for thoracic cancers at Bristol Myers Squibb, expressed disappointment and emphasized the ongoing need for better treatments in this area. Despite the setback, the company plans to conduct a full evaluation of the data and intends to share its findings with the scientific community.

Opdivo and combinations involving the drug are already approved treatments for various stages of NSCLC, including resectable or metastatic cases. The CheckMate -73L trial's failure to meet its primary endpoint does not affect these current approvals.

The trial's detailed results, including secondary endpoints like overall survival rates, will be analyzed and potentially guide future research and drug development efforts.

Bristol Myers Squibb remains committed to advancing cancer treatment and improving patient outcomes through its research programs. The company's efforts in immuno-oncology aim to harness the body's immune system in the fight against cancer, with Opdivo being a key part of its development portfolio.

InvestingPro Insights

In light of the recent developments with Bristol Myers Squibb's (NYSE: BMY) Phase 3 CheckMate -73L trial, investors are closely monitoring the company's performance metrics. According to real-time data from InvestingPro, the market capitalization of Bristol Myers Squibb stands at a robust $91.08 billion. Despite the trial results, the company's gross profit margin remains high at 76.03% for the last twelve months as of Q1 2024, reflecting its strong ability to control costs and maintain profitability in its operations.

One of the InvestingPro Tips notes that management has been aggressively buying back shares, which can be a signal of the company's confidence in its future prospects and a commitment to enhancing shareholder value. Additionally, the company pays a significant dividend to shareholders, with a dividend yield of 5.36% as of the first quarter of 2024, and has maintained dividend payments for 54 consecutive years – a testament to its financial stability and reliability for income-focused investors.

While the trial's outcome may have impacted investor sentiment, causing a 1-month price total return of -11.04%, Bristol Myers Squibb is still considered a prominent player in the Pharmaceuticals industry. The company's valuation implies a strong free cash flow yield, which could be attractive for long-term investors looking for companies with solid financial health.

For those interested in a deeper analysis, InvestingPro offers a comprehensive set of additional tips for Bristol Myers Squibb, which can be accessed at https://www.investing.com/pro/BMY. To enhance your investment research experience, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With 11 more InvestingPro Tips available, investors can gain a more nuanced understanding of the company's performance and future outlook.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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