Merck & Co., Inc. (NYSE:MRK) stock is surging Friday as a major competitor fell a step behind the pharmaceutical company.
Bristol-Myers Squibb Co (NYSE:BMY) said it would not seek accelerated approval for a combination of two new approved drugs designed to tread lung cancer. Opdivo and Yervoy are designed for lung cancer patients who were recently diagnosed.
The company opted not to seek accelerated approval as such a move would add risk to the sales of Opdivo. Bristol-Myers noted that competitors may be moving quickly due to the company’s decision not to do so.
Last week, Merck & Co’s Keytruda cancer drug received a swift review from U.S. regulators. The medication is designed to be used along with chemotherapy in order to treat lung cancer, and it is believed that the medication now has great potential to be the preeminent drug to treat the condition.
Additionally, Keytruda use in combination therapy could be quite effective as it is cheaper than some rival approaches. By May 10, the U.S. Food and Drug Administration will decide whether or not this combination therapy is an effective and safe one for advanced lung cancer.
Lung cancer is the most profitable and largest segment of cancer in the market. Merck & Co. could quickly be eons ahead of rival companies in the treatment of the affliction thanks to Keytruda.
MRK stock popped 3.6% Friday. BMY shares slumped 10.8%.
