Opdivo, an injectable variation of Bristol Myers Squibb's (BMY, Financial) cancer immunotherapy medication, has been approved by the U.S. Food and Drug Administration. Announced Friday, the approval is expected to provide patients with a more practical choice and strengthen the market position of the medication as it gets near a patent cliff.
A PD-1 inhibitor, Opdivo improves the immune system's capacity to find and fight cancer. Previously only accessible as an intravenous infusion, the new injectable formulation enables faster administration, so increasing patient access.
When the patent for the intravenous formulation expires later this decade, Bristol Myers Squibb could face pressure even if the injectable form helps them keep Opdivo's sales steady. The convenience of the injectable solution is seen by analysts as a calculated action to keep market dominance in the cutthroatcancer industry.
Reflecting investor confidence in the company's ongoing innovation and product diversification, Bristol Myers Squibb shares have increased 36% in the previous six months and more than 12% year-to-date.
