Diamonds and Dogs
Bristol-Myers Squibb (BMY) shocked Wall Street by announcing Friday that its new cancer drug Opdivo has failed a trial as a single therapy for newly diagnosed lung cancer patients. The stock is down 15%, dropping as much as 18% on the news. This was the first conspicuous miss for the drug since it launched in late 2014 and has already been approved for six different indications in melanoma, kidney cancer, lymphoma and later-stage lung cancer after acing clinical trials. Bristol-Myers also reported positive data for Opdivo in front-line lung cancer in combination with another cancer drug, Yervoy, back in June.
No fire in FireEye (FEYE). The security software firm beat estimates, but missed sales and guided full year earnings guidance below consensus. The new CEO announced a restructuring plan seeking to cut about $80 million in annual expenses or 9% of its controllable costs, laying off about 300 to 400 people. Not good news for Fireye.