How BMY’s Opdivo Is Expected to Perform in 2017



Opdivo’s revenue trends

In 2016, Bristol-Myers Squibb’s (BMY) Opdivo reported revenues of ~$3.8 billion. The drug accounted for ~20% of BMY’s total revenues in 2016. In 1Q17, Opdivo generated revenues of ~ $1.1 billion, which represents a ~60% YoY (year-on-year) growth and a 14% sequential decline.
Opdivo revenues

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Recent developments

In February 2017, the FDA (US Food and Drug Administration) approved Opdivo for the treatment of patients with locally advanced or mUC (metastatic urothelial carcinoma) who have seen disease progression during or after chemotherapy consisting of platinum.

The approval was granted based on a CheckMate-275 phase-2 trial, wherein opdivo proved an objective response rate of 19.6%, or in 53 of 270 participants. The drug demonstrated a complete response rate of ~2.6% and a partial response rate of ~17.0%.

In 1Q17, Opdivo also received Japanese approval for the treatment of head and neck cancer. These regulatory approvals should contribute to BMY’s revenue growth in 2017, but Opdivo still faces stiff competition from Merck’s (MRK) Keytruda, Novartis’ (NVS) Tafinlar, and Mekinist’s and Roche Holding’s (RHHBY) Zelboraf.

About Opdivo

Opdivo (nivolumab) is a programmed death receptor-1 (or PD-1) blocker. The drug has been approved by the FDA for six cancer indications and is indicated for patients with advanced non-small cell lung cancer, metastatic melanoma, advanced renal cell carcinoma, and squamous cell carcinoma of the head and neck who also underwent prior chemotherapy but were not responsive.

Opdivo is also indicated for advanced urothelial carcinoma and for adult patients with classical Hodgkin Lymphoma whose cancer has relapsed after an autologous stem cell transplant and Adcetris therapy.

Notably, the Vanguard S&P 500 ETF (VOO) has about ~0.45% of its total portfolio holdings in BMY.


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