Roche, Bristol-Myers Battle for Cancer Drug Dominance (RHHBY)

Roche AG's (RHHBY ) lung cancer drug Tecentriq is
among the latest immuno-oncology (I/O) drugs to
hit the market, and is rapidly poaching market
share from major longstanding players like Bristol-
Myers Squibb Co. ( BMY) and Merck & Co. Inc.
(MRK). Immuno-oncology (I/O) refers to the
body’s immune system, and uses drugs called
immunotherapies that target the immune system
to fight cancer.
Roche’s Tecentriq and Bristol-Myers’ Opdivo are
approved for treating cancers as a second-line
treatment. This means that they are used when
other cancer treatments fail. Merck’s Keytruda is
approved as a first-line treatment, meaning it can
be used as an initial therapy. Merck is also
attempting to secure approval for Keytruda as a
combination therapy with chemotherapy, which
will help the company bolster its position in the I/
O race.
All three drugs work by bolstering the body’s
immune system to identify tumors that are difficult
to detect. (For more, see Top Cancer Drugs with
High Future Sales Potential .)
Tecentriq Surges Ahead
Roche's Tecentriq competes head-on with Bristol-
Myers's Opdivo as a second-line cancer
treatment. Opdivo reportedly lost 10 percentage
points of market share to Tecentriq, which secured
its first approval for treating bladder cancer in May
2016, and was expanded to cover lung cancer in
October.
Roche has not disclosed Tecentriq sales numbers,
but initial insights are expected on February 1,
when the company will announce its quarterly
results. Analysts estimate that Tecentriq sales for
bladder cancer treatment could reach $70 million.
However, the most anticipated details are for the
sales of lung cancer treatment, which is one of the
largest cancer markets.
The success of Roche’s Tecentriq has forced rival
Bristol-Myers to cut its 2017 earnings forecast.
Bristol-Myers has acknowledged that Tecentriq “is
grabbing market share from its I/O drug Opdivo
for second-line non-small-cell lung cancer”,
reports the Daily Mail. Bristol-Myers also
continues to see increasing competition from
Merck. (For more, see Bristol-Myers Stock Falls
on Q4 Earnings Miss .)