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Bristol-Myers Shares Leap After Positive Data From Late-Stage Psoriasis Drug Trial

Bristol-Myers looks set to enter the $24 billion market for Psoriasis treatments after positive data from a late-stage trial of its developing deucravacitinib drug.

Bristol-Myers Squibb Co.  (BMY) - Get Bristol-Myers Squibb Company Report shares jumped higher Tuesday after the group posted positive data from a late-stage trial of a key psoriasis treatment.

Bristol-Myers said its developing treatment, known as deucravacitinib, met both co-primary endpoints in a Phase 3 study of patients suffering from moderate to severe plaque psoriasis. The overall safety profile of deucravacitinib was also consistent with earlier trials, Bristol-Myers said.

The treatment market for psoriasis, a persistent skin disorder that affects around 125 million people around the world, is dominated by Novartis AG's Cosentyx. Total sales for all treatments are expected to grow by around 9.5% a year to around $24.4 billion by 2023.

“With limited oral therapeutic options available for psoriasis, there remains a significant need for safe and effective oral therapies. This makes the positive topline results for deucravacitinib in the POETYK PSO-1 trial exciting for the psoriasis community,” said University of Southern California professor April Armstrong, who lead the study. “These findings indicate deucravacitinib has the potential to be a new treatment option for people living with psoriasis and may provide clinically meaningful improvements with the convenience of oral administration."

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Bristol-Myers shares were marked 3.85% higher in early trading Tuesday following news of the deucravacitinib trial to change hands at $61.75 each. 

Bristol-Myers will publish its third quarter earnings on Thursday, with analysts' looking for a bottom line of $1.49 per share on revenues of $10.36 billion.

The group said in early August that it sees non-GAAP earnings of $6.10 to $6.25 per share for the full 2020 year, compared to a prior forecast of $6.00 to $6.20, and revenues in the range of $40.5 billion to $42 billion, a modest increase from the lower end of its previous forecast.