The Ratings Game: Why Bristol-Myers’ lung cancer drug could still succeed despite stunning trial failure

Expectations were running high for Bristol-Myers Squibb Co.’s cancer drug Opdivo, as the company took on late-stage clinical trials for advanced non-small cell lung cancer, a market with blockbuster potential and one that several rival drugmakers had their eye on.

So when the company BMY, -15.67% reported the trial’s failure before the bell on Friday, the news sent its stock plummeting as much as 19.0% in premarket trade. At the same time, shares of rival Merck & Co. MRK, +8.62% jumped 6.8% and shares of AstraZeneca AZN, -0.13% climbed 2.2%. The two pharmaceutical companies are developing competing lung cancer drugs.

>>> Original Source <<<