(Bloomberg) -- Bristol Myers Squibb Co. gained US approval for the first new type of schizophrenia drug in seven decades, opening a fresh avenue of treatment for millions with the serious mental disorder.
The medication, to be sold under the name Cobenfy, gained Food and Drug Administration clearance Thursday to treat patients with the illness that often produces hallucinations and delusions, according to the agency.
The approval is a win for Bristol, which made a big bet when it agreed to buy Karuna Therapeutics for $14 billion last year to bring in the treatment. If commercially successful, the product could help Bristol answer difficult questions about its future as key drugs face stiff competition and new pricing pressure. Two of its biggest sellers — the blood-thinner Eliquis and cancer immunotherapy Opdivo — will lose patent exclusivity in the coming years.
--With assistance from Bill Haubert.
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