Bristol Myers Squibb Stock Climbs on Alzheimer’s Trial Update. What to Know.

The drugmaker is testing a treatment for psychosis associated with Alzheimer’s. (Dreamstime)

Key Points

• Bristol Myers Squibb will enroll more patients in a late-stage trial for Cobenfy.
• The Phase 3 study of Cobenfy, an antipsychotic, will continue as recommended by the trial’s data monitoring committee.
• Cobenfy is being tested for Alzheimer’s-related psychosis, with further ADEPT program results expected by late 2026.

Bristol Myers Squibb will enroll additional patients in one of its late-stage clinical trials for the treatment of psychosis associated with Alzheimer’s disease.

The drugmaker consulted with the Food and Drug Administration after it “identified irregularities” in the trial at a small number of study sites, it said in an announcement Wednesday. The trial’s data monitoring committee recommended the Phase 3 study of Cobenfy, an antipsychotic drug, continue with additional patients.

Bristol Myers rose 2.9% in premarket trading Wednesday. The company was a Barron’s stock pick last month in part because of the early success of Cobenfy, which already is approved to treat schizophrenia.

Bristol Myers is now testing Cobenfy’s effectiveness in patients with Alzheimer’s through a series of studies it calls ADEPT. Additional trial results from the ADEPT program are expected by the end of next year.

“Psychosis related to Alzheimer’s Disease remains an area of tremendous unmet medical need, and maintaining rigorous standards is essential as we work to identify innovative treatment options for patients and families affected by this devastating condition,” said Dr. Laura Gault, the company’s head of neuroscience development, in a statement Wednesday.

Write to Nate Wolf at nate.wolf@barrons.com