Bristol-Myers down 16% on drug disappointment

Disappointing results from a Bristol-Myers Squibb clinical trial sent the pharmaceutical giant's stock plunging Friday while shares of rival Merck jumped on the news.

Bristol-Myers stock (BMY) ended the day down 16% after the company reported that the drug Opdivo did not achieve its goals for treating advanced non-small cell lung cancer.

Merck stock (MRK) rose 10.4% as investors anticipated that the company's rival drug Keytruda could benefit.

Bristol-Myers said its clinical trial, referred to as CheckMate -026, was "disappointing." Opdivo is already on the market as a treatment for certain types of melanoma and Hodgkin lymphoma, for example, but Friday's results mean it may not win the Food and Drug Administration's approval for treatment of this type of lung cancer.

Researchers had hoped that Opdivo could capitalize on hopes in the medical community that certain types of cancer can be combated by unleashing the body's immune system against the disease.

"Bristol-Myers Squibb is proud of all that the company has and aims to accomplish with Opdivo," the company said in a statement. "We are indeed transforming cancer care, and remain committed to bringing the benefit of our medicines to the greatest number of patients across multiple cancers."

To be sure, Opdivo remains a significant asset for Bristol-Myers. Second-quarter sales of the drug soared from $122 million a year ago to $840 million this year, according to S&P Global Market Intelligence.

Sales rose 17% from the first quarter of 2016 to the second quarter.

Follow Paste BN reporter Nathan Bomey on Twitter @NathanBomey.