1. Bristol Myers Squibb's Cobenfy did not outperform placebo in schizophrenia trial. 2. Failure in late-stage trial may impact investor confidence and stock performance.
The failure of a late-stage drug trial often leads to decreased stock value. Historical examples include failures like Pfizer's Mylotarg, which harmed investor sentiment significantly.
Failed drug trials can severely impact stock price and investor confidence, particularly for a company like BMY heavily reliant on successful drug approvals.
Investor reactions are typically immediate following trial results; this may cause temporary stock price drops. Long-term effects will rely on future pipeline developments and other drugs.