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Bristol-Myers Squibb’s Yervoy Is Expected to See Steady Growth

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Aug. 21 2017, Updated 8:06 a.m. ET

Yervoy’s revenue trends

In 2Q17, Bristol-Myers Squibb’s (BMY) Yervoy generated revenues of ~$322 million, which represents ~32% growth on a year-over-year (or YoY) basis and 2% growth on a quarter-over-quarter basis.

In 2Q17, Yervoy generated revenues of ~$245 million in the US market, which reflected ~37% growth YoY. Outside the US markets, Yervoy generated revenues of ~$77 million and saw 24% growth on a YoY basis.

The above chart represents the revenue trajectory of Yervoy from 2Q16 to 2Q17. To learn more about Yervoy, please refer to Inside BMY’s Yervoy: What the Revenue Trends Tell Us.

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Recent regulatory approval

In July 2017, the FDA approved the label expansion of Yervoy to include the drug’s indication for the treatment of unresectable or metastatic melanoma in pediatric patients aged above 12 years. The regulatory approval could boost Yervoy’s sales growth in the United States.

Bristol-Myers Squibb’s Yervoy (Ipilimumab) faces stiff competition from Roche Holding’s (RHHBY) Zelboraf (vemurafenib), Novartis’s (NVS) Tafinlar (dabrafenib) and Mekinist (trametinib), and Merck’s (MRK) Keytruda (pembrolizumab). The Health Care Select Sector SPDR ETF (XLV) has ~3.2% of its total portfolio invested in Bristol-Myers Squibb.

CheckMate-214 trial

In August 2017, Bristol-Myers Squibb presented the results from the Phase 3 CheckMate-214 trial. Bristol-Myers Squibb conducted the Phase 3 CheckMate-214 trial to evaluate the safety and efficacy of the Yervoy and Opdivo combination therapy for the treatment of intermediate- and poor-risk patients with previously untreated advanced or metastatic renal cell carcinoma compared to sunitinib.

In the Phase 3 CheckMate-214 trial, 41.6% patients on Opdivo and Yervoy combination therapy achieved the objective response rate (or ORR) compared to 26.5% patients who were on sunitinib. The Opdivo and Yervoy combination therapy reported median progression-free survival (or PFS) of 11.56 months, while it was 8.38 months for patients on sunitinib.

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