Bristol-Myers Squibb (BMY) investors will be focused on the trajectory of Cobenfy, its schizophrenia therapy, on its first full quarter on the market, UBS said in a note emailed Friday.

The brokerage believes the company will have some insight into the drug's indication expansion, based on the phase 3 study of adjunctive schizophrenia. The results from the trial are expected in Q2.

On the earnings front, UBS said it was estimating Q1 EPS of $1.52, in line with expectations.

In its note, UBS highlighted a number of headwinds heading into the earnings, such as about $500 million in destocking, Medicare Part D redesign, and erosion of the company's legacy portfolio. But, these headwinds were already baked into consensus expectations.

Consensus for Eliquis and Revlimid sales could be too low, UBS said, as data from IQVIA indicated that prescriptions for both medicines was strong. It was forecasting Q1 Eliquis sales of $3.40 billion, ahead of consensus' $3.34 billion, and Revlimid sales at $838 million, also above the consensus' $802 million.

All in, UBS said its total sales estimate for the quarter was 0.8% above consensus.

The firm slashed its price target for Bristol-Myers to $54 from $60, with a neutral rating.

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