Recently, Bristol-Myers Squibb Co. (BMY) reported encouraging results from a late-stage study evaluating the combination therapy of Onglyza (saxagliptin) and metformin in patients suffering from type II diabetes. Onglyza has been co-developed by Bristol-Myers and AstraZeneca Plc (AZN). The data were presented at the 70th American Diabetes Association Annual Scientific Sessions.
The results from the multicenter, randomized, double-blind, active-controlled study revealed that the combination therapy led to long-term glycemic improvement in previously untreated patients suffering from type II diabetes. Glycemic control refers to the levels of blood sugar (glucose) in a person suffering from diabetes. The disease was unsatisfactorily controlled by diet and exercise compared with a 10 mg dose of saxagliptin or metformin alone.
Onglyza is under review in more than 58 countries across the globe. The drug has already been approved in 43 countries including the United States , Canada , Mexico , 30 European Union nations, Chile , India , Brazil, Argentina and Switzerland . In 2009, the U.S. Food and Drug Administration (FDA) approved Onglyza as an addition to diet and exercise to improve blood sugar (glycemic) control in adults suffering from type II diabetes.
Encouraging Data on dapagliflozin Bristol presented encouraging data on another of its type II diabetes candidates, dapagliflozin. Data from the 24-week late-stage study (n=800) revealed that type II diabetes patients treated with dapagliflozin underwent a significant reduction in their blood sugar levels. Dapagliflozin was being assessed as an add-on therapy to insulin in type II diabetes patients (aged between 18-80 yrs) whose disease was inadequately controlled by insulin.
Furthermore, data from the randomized, double-blind, placebo-controlled study revealed that dapagliflozin caused statistically significant weight loss and a slight reduction in the needed insulin dose. Dapagliflozin is being co-developed with AstraZeneca.
Lucrative Type II diabetes market
The type II diabetes market is highly lucrative with a huge unmet need. According to data released by GlobalData, the type II diabetes market was worth $21.9 billion in 2009 across the globe. This represented a compound annual growth rate of 11.2% between 2001 and 2009. The prevalence of diabetes in the US and major European countries is on the rise. The market is highly competitive and has players like Merck’s (MRK) Januvia, Amylin’s (AMLN) Byetta and Sanofi’s (SNY) Lantus. The market is getting further crowded with new entrants such as Novo Nordisk’s (NVO) Victoza. Moreover, there are a large number of candidates, targeting this market, in various stages of development.
Our Recommendation
Currently, we are Neutral on Bristol-Myers with a Zacks Rank of #3. The Zacks Rank #3 indicates that the stock is expected to perform in line with the overall US equity market for the next 1-3 months. Our long-term Neutral stance on the company indicates that the stock is expected to replicate its short-term performance, but over 6-12 months. Consequently, we advise the investors to retain the stock over the time-period.
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Read the full analyst report on “NVO”
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