Bristol-Myers Squibb not to apply for accelerated approval of Opdivo, shares fall >11%

Pharmaceutical group Bristol-Myers Squibb announced in a statement to investors it will not apply to FDA for accelerated approval (Fast Track) for the Opdivo-Yervoy combined therapy as a first-line treatment for lung cancer. BMS already surprised investors in October by announcing that Opdivo had failed an important clinical trial, which resulted in a 26% loss in market value. The company’s shares dropped by over 11% last Friday following the announcement, while competitor MSD benefited from it and was up more than 4%. AstraZeneca’s situation is different—Pascal Soriot’s group, indeed, is assessing, in an important Phase III trial, a cocktail very similar to that by BMS, thus investors have partially lost interest in AstraZeneca’s shares, which lost 3.4%.
(Source BMS)