Bristol Myers Stock ($BMY) Set for a Breakout on FDA Approval

9月27日

Bristol Myers Squibb (NYSE: BMY) has taken a major leap forward in the pharmaceutical landscape with the recent FDA approval of its highly anticipated schizophrenia drug, Cobenfy. As the first novel treatment for schizophrenia in more than seven decades, Cobenfy brings hope to millions of patients while also potentially delivering significant growth for Bristol Myers. Beyond the groundbreaking nature of the drug, BMY stock is seeing an exciting technical setup that suggests potential upside.

Overview:
On Thursday, the FDA approved Bristol Myers’ novel schizophrenia drug, Cobenfy, marking a major milestone for the treatment of this debilitating mental disorder. Schizophrenia, which affects nearly 3 million people in the U.S., has long been treated with antipsychotic drugs that come with severe side effects like weight gain and uncontrollable movements. What sets Cobenfy apart is that it does not directly block dopamine receptors in the brain, offering a new approach with potentially fewer side effects.

The approval is also timely for Bristol Myers Squibb (NYSE: BMY), which faces upcoming patent expirations on several of its top-selling drugs. Cobenfy could become a long-term revenue generator, with analysts at Guggenheim projecting it to be a multi-billion-dollar opportunity. However, they also expect a slow rollout, meaning its impact on the company’s top line may not be felt until 2025.

The drug will retail for $1,850 per month or $22,500 annually, before insurance. Given that 80% of schizophrenia patients are covered by Medicare or Medicaid, Bristol Myers Squibb plans to launch affordability programs to ease access to the drug.

Cobenfy’s approval is a promising start, but the potential goes far beyond schizophrenia. Bristol Myers is already conducting late-stage clinical trials to test Cobenfy’s efficacy in treating Alzheimer’s disease, bipolar mania, and autism-related irritability. This could greatly expand its market potential, making it a game-changing drug in the years to come.

Technical Analysis:
From a technical standpoint, BMY is poised for a breakout. As of Friday morning, the stock surged 5.3% to $52.78 in premarket trading following the FDA approval news, signaling strong market enthusiasm.

Looking at the daily price chart, BMY is forming a bullish symmetrical triangle pattern, which often precedes a breakout. The stock has been trading in a falling wedge pattern for several months, with Friday’s move pushing the price toward a key breakout point. This wedge pattern, combined with rising momentum, suggests that the stock could experience further upward