Bristol-Myers Squibb Company
- Company Name
- Bristol-Myers Squibb Company
- Stock Symbol
- Class Period
- January 27, 2015 to October 9, 2016
- Motion Deadline
- April 10, 2018
The complaint charges Bristol-Myers and certain of its officers with violations of the Securities Exchange Act of 1934. Bristol-Myers discovers, develops, licenses, manufacturers, markets, distributes and sells biopharmaceutical products globally.
The complaint alleges that throughout the Class Period, defendants made false and misleading statements and/or failed to disclose material adverse facts about the Company’s business and prospects. Specifically, defendants failed to disclose that Bristol-Myers’ CheckMate-026 trial of its drug Opdivo (nivolumab) as a first-line therapy in patients with advanced non-small cell lung cancer (“NSCLC”) was more likely to fail than had been represented during the Class Period, including in the Company’s August 5, 2016 announcement regarding the failure of the CheckMate-026 trial to demonstrate progression-free survival in patients treated with Opdivo. As a result of this undisclosed adverse information regarding the trial for Opdivo, Bristol-Myers securities traded at artificially inflated prices, with its stock price reaching a high of more than $75 per share during the Class Period.
On August 5, 2016, the Company announced that its CheckMate-026 trial of Opdivo as monotherapy for the treatment of NSCLC had failed because it did not meet its primary endpoint of progression-free survival. On this news, the price of Bristol-Myers stock fell $12.04 per share, or 16%, to close at $63.28 per share on August 5, 2016. The stock price continued to fall on the next trading day, declining another $2.98 per share, or nearly 5%, to close at $60.30 per share on August 8, 2016.
Then on October 9, 2016, Bristol-Myers presented its analysis of the full data set from the CheckMate-026 trial at the European Society of Medical Oncology and explained on a conference call for investors that overall survival in the trial was only 14.4 months for Opdivo versus 13.2 months for chemotherapy. Thus, the trial had failed to meet its primary endpoint of demonstrating the efficacy of Opdivo versus chemotherapy in subgroups of the lung cancer patient population. Following the conference call, analysts explained that design flaws likely caused the CheckMate-026 trial to fail, with one stating that “meaningful imbalances in the enrollment across treatment arms, including patients with liver metastasis and male/female ratios may have contributed to the trial failure.” On this news, the price of Bristol-Myers stock fell $5.62 per share, or 10%, to close at $49.81 per share on October 10, 2016.