Double down

Bristol-Myers Squibb Co.'s suspension and subsequent termination of BMS-986094 cost the pharma about $5 billion in market cap, double the $2.5 billion it paid to add the HCV therapeutic to its pipeline less than nine months ago. The extra penalty suggests the Street has broadly devalued the pharma's now "nuc"-less HCV pipeline.

Bristol-Myers (NYSE:BMY) gained the compound when it acquired Inhibitex Inc. in January. On Aug. 2, the pharma suspended development of '094, a nucleotide analog NS5B polymerase inhibitor, due to a case of heart failure in a Phase II trial. The news sent BMS tumbling $3.05 to $32.55, a loss of $5.1 billion in market cap on the day...