AbbVie Inc.’s disappointing trial results for its new schizophrenia drug bode well for rival Bristol Myers Squibb Co., analysts said. On Monday AbbVie said that its Phase 2 trial investigating emraclidine as a once-daily oral monotherapy treatment for adults with schizophrenia did not meet the primary endpoint of showing a “statistically significant” improvement when compared with a placebo group.

If it does prove to be the end of emraclidine for schizophrenia, that looks set to benefit Bristol-Myers Squibb, which ended a 10-year hiatus in new-mechanism therapies for the disorder when it got FDA approval for Cobenfy (xanomeline tartrate/trospium chloride) in September. Shares in BMS rose nearly 12% after AbbVie's announcement.

Negative data cost AbbVie billions of dollars in market value and convinced analysts Bristol Myers had placed a better bet in buying Karuna Therapeutics.