Bristol Myers Squibb (BMY) faces challenges after a Phase III trial failure for its schizophrenia drug Cobenfy, which threatens the company's efforts to secure a label expansion and impacts growth projections. Cobenfy is a key asset from BMY's $14 billion acquisition of Karuna Therapeutics, aimed at offsetting upcoming patent expirations. Despite this setback, BMY reported a sales beat driven by older drugs and raised its 2025 outlook, although it noted impacts from China tariffs. CEO Chris Boerner emphasized that dealmaking will be a top priority in 2025, signaling plans for inorganic growth through acquisitions to bolster the company’s pipeline and revenue. This strategic focus aligns with broader industry trends, with other biotech leaders like Merck also expressing intentions to pursue aggressive dealmaking in an uncertain macroeconomic environment.