Latest news with #BristolMyers'
CNBC
31-07-2025
- Business
- CNBC
We're lowering our price target on Bristol Myers as two key overhangs persist
Bristol Myers Squibb shares dropped Thursday despite a solid quarterly beat and guidance raise, as Wall Street's confidence wavers in the growth trajectory for schizophrenia treatment Cobenfy. Revenue in the second quarter, ended June 30, ticked up 1% to $12.3 billion, topping estimates of $11.4 billion, according to LSEG. Adjusted earnings per share (EPS) of $1.46 outpaced expectations of $1.07 but were down 29% versus the year-ago period. Bottom line While the results were strong overall, and management did raise their outlook for the full year, Bristol Myers shares nonetheless dropped 4% following the release. Most likely, it was a reflection of investors' unwillingness to get too excited about the reported numbers and the road ahead until we get a better sense of the size of the opportunity presented by Cobenfy. The big event is late-stage trial data from a study examining the drug's potential benefit to Alzheimer's psychosis patients, expected to be released later this year. The Cobenfy opportunity came under increased scrutiny earlier this year following a failed phase 3 trial relating to the efficacy of the drug in schizophrenia patients as an add-on treatment. The Cobenfy narrative — at the core of our investment thesis in Bristol Myers — went from being pretty straightforward to a show-me story. On the post-earnings call, management tried to reassure investors about Cobenfy. CFO David Elkins said, "The launch of Cobenfy is tracking, as we expected. Weekly total prescriptions continued to grow, and we expect continued steady growth with sales in the second half of the year higher than the first half." The drug became part of Bristol Myers' offerings after the drugmaker completed its $14 billion acquisition of Karuna Therapeutics in March 2024. While the solid execution seen in Bristol Myers' second quarter gives us reason enough to stick with the stock, for now, we understand the concern regarding the upcoming Cobenfy trial data. We see no reason to add to our position at this time, despite shares trading at less than 7 times the midpoint of the updated full-year EPS guidance and a nearly 6% dividend yield. That yield does pay for our patience, but we can't throw good money after bad. So, as good as the quarter was, the reaction indicates that the stock is most likely a value trap until that trial data is released. We are, therefore, reiterating our hold-equivalent 2 rating and cutting our price target to $55 per share from $60, reflecting the wait-and-see nature of Cobenfy and the sector-wide overhang related to the Trump administration's pharmaceutical policy proposals, including tariffs. Indeed, on Thursday afternoon, President Donald Trump said he asked drugmakers to take a series of actions "within the next 60 days," including extending "most favored nation" pricing to Medicaid. Commentary As we can see in the chart above, the strong headline results can be attributed to broad-based strength throughout Bristol Myers' portfolio. On the call, CEO Christopher Boerner commented that "Cobenfy has delivered strong performance since launch, and we have consistently received positive feedback from physicians. They are seeing firsthand the medicine's differentiated profile with robust efficacy on both positive and negative symptoms and improved cognition." Growth portfolio sales were driven by very strong performance from Breyanzi, Reblozyl and Camzyos. With the patent cliffs hanging over Bristol Myers' legacy portfolio, the market is primarily focused on the performance its basket of newer drugs. Guidance Bristol Myers again positively revised its 2025 full-year guidance: Sales: Now targeting a range of roughly $46.5 billion to $47.5 billion, up from the prior range of $45.8 billion to $46.8 billion, and ahead of the $46.25 billion the Street was expecting, according to LSEG. Driving the $700 million upward revision is strength in the growth portfolio beyond what management was previously expecting, and a smaller-than-previously anticipated decline in the legacy portfolio. Helping the legacy portfolio, worldwide sales of Revlimid are now expected to come in at about $3 billion; Prior guidance called for sales to be at the high end of a $2 billion to $2.5 billion range. However, these positives are slightly offset by a smaller-than-previously expected benefit from foreign exchange dynamics. Those are now expected to benefit the top line by $200 million (versus $250 million previously). Gross margin: Reiterated at roughly 72%. Operating expense: Now expected to be about $16.5 billion, up slightly from the roughly $16.2 billion previously forecast. The increase is attributable to a roughly $300 million increase in business development and growth portfolio investments. Earnings per share: Now targeting a range of $6.35 to $6.65 per share. While that is down from the $6.70 to $7.00 range previously provided, it's important to note that Bristol Myers is now factoring in 57-cent per share headwind relating to in-process research-and-development (IPRD) charges associated with the BioNTech partnership announced during the quarter. Excluding this impact, it appears that earnings guidance would have been revised 22-cents higher, given it was cut by only 35-cents at the midpoint despite the headwind being a 57-cent negative impact. Regardless, this new range is still ahead of $6.24 per share the Street was looking for, according to LSEG. The company is also factoring in $150 million more in royalty and interest income than previously expected. (Jim Cramer's Charitable Trust is long BMY. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
CNBC
24-06-2025
- Business
- CNBC
Cigna sues Bristol Myers for alleged monopoly over blockbuster cancer drug
Cigna sued Bristol Myers Squibb on Tuesday, accusing the drugmaker of violating U.S. antitrust law by keeping generic versions of its blockbuster blood cancer drug Pomalyst off the market so it could retain a monopoly. In a complaint filed in Manhattan federal court, Cigna said Bristol Myers' Celgene unit filed sham lawsuits to protect its patents for Pomalyst, whose chemical name is pomalidomide, and paid off several generic drugmakers to end legal challenges. The insurer also said Celgene did nottell the U.S. Patent and Trademark Office that a Boston doctor had obtained a patent for pomalidomide to treat multiple myeloma, and defrauded that office by claiming "unexpected" positive results in testing. By having "willfully maintained monopoly power" over brand name and generic Pomalyst, Bristol Myers caused purchasers such as Cigna to overpay by "many hundreds of millions, if not billions, of dollars," the complaint said. Bristol Myers, based in Princeton, New Jersey, did not immediately respond to requests for comment. Cigna, based in Bloomfield, Connecticut, is seeking unspecified triple damages. It sued nearly three months after a Manhattan federal judge dismissed a proposed class action led by Blue Cross Blue Shield of Louisiana raising similar claims. In that case, U.S. District Judge Edgardo Ramos said the plaintiffs failed to show Celgene committed fraud in procuring patents for Pomalyst, or that Celgene filed baseless lawsuits against generic drugmakers that led to fraudulent settlements. Bristol Myers' U.S. sales of the drug, which is also sold under the name Imnovid, totaled $2.7 billion last year and $537 million in the first three months of 2025. Multiple myeloma is a blood cancer that affects plasma cells in bone marrow. There is no known cure, and the five-year survival rate was 62.4% between 2015 and 2021, according to the National Cancer Institute.
CNBC
02-06-2025
- Business
- CNBC
Bristol Myers' new cancer partnership is promising, but doesn't change our stance on the stock yet
Bristol Myers Squibb on Monday made a splashy move to fortify its drug pipeline. However, the subdued stock reaction suggests Wall Street is looking for more show than tell. So are we. The news The drugmaker announced a licensing deal with Germany's BioNTech to jointly develop and commercialize the latter's experimental cancer therapy known as BNT327. The drug, which is still in clinical trials, belongs to an increasingly popular group of treatments called immuno-oncology. Often called IO for short, these treatments work by getting a patient's own immune system to help fight the cancer. Merck 's Keytruda is the best-known drug in the class, but Club name Bristol Myers' own Opdivo is there, too. Within the field of IO, there's a lot of buzz around the newer dual-acting approach that BNT327 – and similar drugs being investigated by other companies – use to treat the disease. Bristol Myer's agreement with BioNTech is potentially worth around $11 billion to the German drugmaker if certain milestones are achieved in the coming years. Bristol Myers is paying $1.5 billion upfront and owes another $2 billion in payments through 2028. Profits and losses from the drug will be shared equally between the two companies, according to a Bristol Myers press release. BioNTech is best known for its work on a Covid-19 vaccine in collaboration with Pfizer . Big picture For investors, Bristol Myers entered the year with a lot to prove, as the company navigates the loss of exclusivity for cancer drug Revlimid and nears the same fate for top-selling drugs such as bloodthiner Eliquis, and the aforementioned Opdivo in the coming years. The burden of proof got even higher in April following a failed trial for its new schizophrenia treatment Cobenfy, which investors — including the Club — have viewed as critical to the company's future revenue growth. While CEO Chris Boerner has argued that the trial results do not "really have any impact on the long-term potential" of Cobenfy, the market is divided. Speaking on CNBC on Monday, Boerner said the company's partnership with BioNTech gives the company "another leg for growth as we exit this decade." Boerner said he believes the two companies have an opportunity to "transform the outcomes for patients" in hard-to-treat solid tumors, including lung and triple-negative breast cancer. "We think this could be the next new frontier in the treatment of cancer," said Boerner, who added that Bristol Myers' experience in IO drugs with Opdivo is helpful in pursuing the BNT327 opportunity. BMY YTD mountain Bristol Myers' year-to-date stock performance. The long-term sales potential of Cobenfy isn't the only question mark that has lately weighed on shares of Bristol Myers, which are down around 18% over the past three months. Bristol Myers and its peers are also facing incoming tariff hurdles from President Donald Trump . Though the Trump administration has not formally announced tariffs on pharmaceuticals, the president has said they are being considered. Trump also signed an executive order in May to incentivize domestic manufacturing for prescription drugs. Bristol Myers already pledged a $40 billion investment in the U.S. last month. Asked about these other political dynamics Monday, Boerner said that the company is "engaging with the president and his administration on tariffs," noting that the majority of its infrastructure and sales are U.S.-based. "We need to make sure they understand the complexity of the supply chain so any tariffs that are implemented are implemented in a way that we don't see supply disruptions," the CEO said, further stating that this is a priority to ensure patients get their medicine. He also added that it would take time to shift supply chains. Bottom line Bristol Myers' deal with BioNTech is promising – and given the importance of filling out its drug pipeline with additional candidates to drive growth and assuage investor concerns about the patent cliff, Jim Cramer said he would have expected to see a more positive market reaction Monday. In afternoon trading, the stock gained less than 1% to just over $48 per share. BioNTech shares surged more than 19%, though. Jim called that disparity "a very one-way street." The hope, Jim explained, is that BNT327 could be competitive with Merck's Keytruda, if not even more effective. Nevertheless, we understand that investors have a higher bar for Bristol Myers these days in the wake of the Cobenfy trial in April. "It's turned into a show-me story," said Jeff Marks, director of portfolio analysis for the Club. Indeed, we sold 100 shares of Bristol Myers back in March when the stock was above $60 a share, but have held off on rebuilding it at these lower price levels for that reason. We lowered our price target on the stock to $60 a share from $70 following earnings in April to account for the new Cobenfy information. (Jim Cramer's Charitable Trust is long BMY. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Yahoo
31-05-2025
- Business
- Yahoo
EXEL Reports Superior Efficacy Data From Kidney Cancer Study Cohort
Exelixis EXEL announced encouraging results from an expansion cohort of the early to mid-stage study of its next-generation oral TKI, zanzalintinib, in combination with either Bristol Myers' BMY Opdivo (nivolumab) or a fixed-dose combination of nivolumab and relatlimab (Opdualag) in patients with previously untreated advanced clear cell renal cell carcinoma (RCC). The phase Ib/II STELLAR-002 study is evaluating the candidate's safety and efficacy as a monotherapy or in combination with Opdivo, Opdualag, or the Opdivo/Yervoy combo in patients with advanced solid tumors. According to data from the expansion cohort of Exelixis' STELLAR-002 study, the combination of zanzalintinib with Bristol Myers' Opdivo demonstrated an objective response rate (ORR) of 63%, while the combination with Opdualag showed an ORR of 40%. Both treatment arms achieved a disease control rate of 90%. At a median follow-up of 20.1 months for the Opdivo arm and 15.9 months for the Opdualag arm, the 12-month duration of response was 73.4% and 74.1%, respectively. Median progression-free survival was reported as 18.5 months and 13 months for the Opdivo and Opdualag combinations, respectively. EXEL shares have risen 28.7% year to date against the industry's decline of 5.6%. Image Source: Zacks Investment Research The zanzalintinib/Opdivo combo has the potential to address the unmet medical need for RCC treatments. Based on the encouraging high rate of durable responses and long progression-free survival data observed, coupled with the lack of other effective therapies in the market, the company plans to further evaluate the regimen. Treatment-emergent adverse events (TEAEs) occurred in all patients, with common grade 3/4 events, including hypertension, diarrhea and liver enzyme elevations in both treatment arms. Two grade 5 TEAEs were reported per arm (none treatment-related). Study drug discontinuation due to TEAEs was observed in 8% and 20% of patients in the Opdivo and Opdualag combination arms, respectively. Exelixis shared additional data from several cohorts in the phase Ib/II STELLAR-002 study, evaluating different dose combinations of zanzalintinib with Bristol Myers' Opdivo or Opdualag in patients with advanced solid tumors. Colorectal and prostate cancers were most common among patients receiving zanzalintinib with Opdivo, while RCC was the most frequent tumor type in the Opdualag cohorts. The combination therapies showed a manageable safety profile consistent with the individual agents. Early safety, efficacy, and pharmacokinetic data supported the selection of the 100 mg zanzalintinib dose for the ongoing expansion cohorts. Please note that Bristol Myers' Opdivo is approved, both as a monotherapy and in combination with Yervoy, to treat a plethora of cancer indications in many countries, including the United States and the European Union. BMY's Opdualag is also currently approved in the United States and the EU for treating unresectable or metastatic melanoma. Exelixis, Inc. price-consensus-chart | Exelixis, Inc. Quote Exelixis currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the biotech sector are Bayer BAYRY and Amarin AMRN, each carrying a Zacks Rank #2 at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. In the past 60 days, estimates for Bayer's earnings per share have increased from $1.19 to $1.25 for 2025. During the same time, earnings per share have increased from $1.28 to $1.31 for 2026. Year to date, shares of Bayer have gained 41.8%. BAYRY's earnings beat estimates in one of the trailing four quarters, matched twice and missed on the remaining occasion, the average negative surprise being 13.91%. In the past 60 days, estimates for Amarin's loss per share have narrowed from $5.33 to $3.48 for 2025. During the same time, loss per share estimates for 2026 have narrowed from $4.13 to $2.67. Year to date, shares of AMRN have gained 13.3%. AMRN's earnings beat estimates in two of the trailing four quarters, matched once and missed the same on the remaining occasion, delivering an average surprise of 29.11%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bristol Myers Squibb Company (BMY) : Free Stock Analysis Report Bayer Aktiengesellschaft (BAYRY) : Free Stock Analysis Report Exelixis, Inc. (EXEL) : Free Stock Analysis Report Amarin Corporation PLC (AMRN) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Globe and Mail
30-04-2025
- Business
- Globe and Mail
This High-Yield Pharma Stock Looks Like an Incredible Bargain
When markets get choppy, smart investors often seek refuge in pharmaceutical stocks. These companies typically offer consistent cash flows, essential products, and solid dividends regardless of economic conditions. One big pharma name stands out as an exceptional opportunity: Bristol Myers Squibb (NYSE: BMY). The stock has been pummeled in 2025, plunging 23% year to date (at the time of this writing) amid broader market turbulence. This dramatic underperformance has created a rare buying opportunity for investors willing to look past short-term headwinds. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Bristol Myers Squibb offers a compelling combination of deep value and substantial income that deserves serious consideration. Let's examine why this beaten-down pharmaceutical giant might be one of the market's most attractive bargains. Value metrics that defy logic Bristol Myers Squibb currently trades at an almost unbelievable 7.2 times forward earnings. For perspective, the S&P 500 trades at approximately 18 times forward earnings, meaning Bristol Myers Squibb stock sells at a nearly 60% discount to this benchmark index. This extraordinarily low valuation suggests investors are pricing in an overly pessimistic view of the company's future earnings. For income seekers, the story gets even better. Bristol Myers Squibb currently offers a hefty 5.12% dividend yield, nearly quadruple the S&P 500's current yield of 1.35%. The drugmaker's hefty yield is also the second highest among all major drug manufacturers, with only Pfizer sporting a higher yield. While the company's rather high 91% payout ratio raises questions about sustainability, the pharma titan has successfully navigated similar pressures in the past. Why the market is so pessimistic To be fair, Bristol Myers Squibb faces legitimate challenges. Wall Street thinks the company's 2026 revenue will decline by nearly 7%, driven by mounting pricing pressures, geopolitical upheaval, and slowing growth in key franchises. Longer term, the company also faces significant patent expirations for blockbuster drugs Eliquis (cardiovascular) and Opdivo (oncology) beginning in 2028, which could further pressure its revenue base over the balance of the decade. Recent clinical setbacks haven't helped investor confidence either. The company was recently stung by a string of clinical trial failures across several key pipeline assets, including cancer drug Opdualag, neuroscience drug Cobenfy, and heart medication Camzyos. While management insists these failures don't affect the drugs' core growth opportunities, the market remains skeptical. The case for optimism A deeper examination of Bristol Myers' underlying business reveals several factors the market appears to be overlooking in its rush to abandon the stock. First, Bristol Myers Squibb's aggressive acquisition strategy has built a diversified pipeline that extends well beyond its existing blockbusters. Recent acquisitions of oncology companies Mirati and RayzeBio, along with neurology specialist Karuna, have strengthened its position in high-growth therapeutic areas, creating multiple potential growth drivers. Second, the company is making significant progress paying down debt from prior deals, improving financial flexibility for future value-creating acquisitions. This strengthened balance sheet positions Bristol Myers Squibb to capitalize on the current biotech downturn by acquiring promising assets at attractive valuations. Most importantly, promising pipeline candidates in cardiology (milvexian) and hematology (iberdomide and mezigdomide) could offset some of the expected revenue decline from patent expirations. Additionally, Cobenfy's upcoming Alzheimer's disease psychosis data could potentially unlock a massive new market. A contrarian opportunity worth the risks Bristol Myers Squibb stock offers that rare combination of deep value and substantial income that typically signals a compelling contrarian opportunity. While the company undeniably faces serious challenges, the market's extreme pessimism appears to have overshot reality. For patient investors willing to accept some near-term uncertainty, the current entry point offers an exceptional risk-reward proposition. Even if revenue declines materialize as projected, the stock's rock-bottom valuation provides a substantial margin of safety -- all while investors collect a hefty 5.12% dividend. Should you invest $1,000 in Bristol Myers Squibb right now? Before you buy stock in Bristol Myers Squibb, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bristol Myers Squibb wasn't one of them. 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