AstraZeneca and Bristol-Myers report mixed data (BMY, AZN)

It was just three weeks ago when AstraZeneca and Bristol-Myers Squibb came up with an announcement that their new diabetes drug named Dapagliflozin has come up with positive results in the late-stage trial that combined the therapy with metformin, a standard therapy. However, new data from the second planned late stage trial for dapagliflozin demonstrated reduced blood sugar levels and increased rate of infections among patients taking the drug.

The results from 24 week clinical study earlier revealed that dapagliflozin when added with metformin can reduce blood sugar levels and fasting plasma glucose in type 2 diabetes patients. Both the companies had made a joint announcement that their new diabetes drug was able to meet both the primary and secondary endpoints and shares of AstraZeneca and Bristol-Myers Squibb went up after few hours. However, the new data does not show any improvement in weight loss for patients who were selected for the late stage trial.

The mixed data report for dapagliflozin could be a cause of concern for both AstraZeneca and Bristol-Myers Squibb as analysts have high expectations from dapagliflozin and many investors believe that the sales of this new diabetes drug would cross US$1.5 billion as there are many diabetes patients in the United States.