Bristol Myers Squibb Believes Alzheimer’s is Largest Market for Schizophrenia Drug Cobenfy
Bristol Myers Squibb believes that Alzheimer’s disease is the largest market for its newly approved schizophrenia drug, Cobenfy, which it expects to eventually generate billions of dollars in revenue. The company is studying Cobenfy for several treatment uses, including Alzheimer’s disease psychosis, Alzheimer’s agitation, and Alzheimer’s cognition, as well as bipolar disease and autism.
According to the company’s CFO, David Elkins, each treatment use has multibillion-dollar potential, but Alzheimer’s is the “really large market here.” There are nearly 6 million patients in the US with Alzheimer’s, and around half of them have psychosis, or symptoms such as hallucinations and delusions. Cobenfy could be the first drug specifically approved for Alzheimer’s-related psychosis.
Atypical antipsychotics are often used to treat psychosis in Alzheimer’s patients, but they can increase the risk of death. Cobenfy does not have this risk, according to Bristol Myers Squibb. The company also plans to release initial late-stage trial data for Cobenfy in Alzheimer’s-related psychosis treatment during the latter part of the year, and start phase three trials in Alzheimer’s agitation, Alzheimer’s cognition, and bipolar disorder in 2025.
JPMorgan analyst Chris Schott expects Cobenfy sales to reach about $5 billion by 2030, with a peak sales potential in the $10 billion range across multiple treatment uses. This is a huge boon to Bristol Myers Squibb as it faces pressure to offset the potential loss of revenue from top-selling treatments that will see their patents expire.
Cobenfy’s roots are in treating Alzheimer’s, and it was originally tested by Eli Lilly in the 1990s to reduce cognitive decline. However, the company shelved the drug due to severe side effects. Bristol Myers Squibb acquired the rights to the drug through its acquisition of Karuna Therapeutics, and is now developing it as a treatment for schizophrenia and Alzheimer’s-related psychosis.
The company believes that Cobenfy has the potential to be a game-changer for patients with Alzheimer’s, and could improve their cognition and quality of life. As the company’s CFO, David Elkins, said, “If you can get rid of the psychosis, the agitation, people’s cognition improves. Just imagine for the caregivers and health-care system overall, how impactful this drug could be for those patients and their loved ones. It’s really exciting when you think about it in that context.”
