Bristol-Myers Drops After Cancer Drug Combo Rejected in Europe

Bristol-Myers Squibb Co.’s euphoria from a solid second-quarter earnings report lasted less than four hours.

During a call discussing the company’s second-quarter results, Chief Executive Officer Giovanni Caforio said that Bristol-Myers’s combination cancer treatment had failed to secure additional approval from European regulators for use in a form of kidney cancer. Adding new indications for the drugs has been a key part of their growth.

The revelation, which the company said it only learned of on July 25, reversed early gains in the shares. They dropped as much as 5 percent, the biggest decline in almost two months, and were ...