Latest news with #ChrisBoerner
CNBC
2 days ago
- 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.
Reuters
3 days ago
- Business
- Reuters
Bristol Myers to pay $1.5 billion upfront for BioNTech cancer drug partnership
June 2 (Reuters) - Bristol Myers Squibb (BMY.N), opens new tab will pay $1.5 billion upfront to partner with Germany's BioNTech ( opens new tab, on an experimental cancer drug, the U.S. company said on Monday, in a deal that could eventually exceed $11 billion in value for BioNTech. Bristol said it will co-develop and co-commercialize BioNTech's drug, BNT327, for multiple solid tumour types. The deal underscores the industry's focus on a new dual mechanism of action in oncology. BNT327 is designed to activate the immune system, similar to an established drug class including Merck & Co's (MRK.N), opens new tab Keytruda, but also to cut a tumour's blood supply. "We are impressed by the innovation that BioNTech has achieved to date and we look forward to partnering to accelerate existing clinical trials and time to market, while expanding the number of potential indications," Bristol Myers CEO Chris Boerner said in a statement. Instil Bio, opens new tab(TIL.O), opens new tab and ImmuneOnco ( opens new tab are working on a similar compound called SYN-2510. Summit Therapeutics, opens new tab(SMMT.O), opens new tab and Akeso ( opens new tab have formed another partnership in the development race with a drug candidate called ivonescimab. BioNTech took full ownership of BNT327 through the acquisition, opens new tab of China's Biotheus earlier this year for $800 million upfront and up to $150 million contingent on development achievements. It previously held certain rights in the drug under a 2023 collaboration, opens new tab deal. In addition to the initial payment, Bristol plans to pay BioNTech up to $2 billion more in non-contingent anniversary payments through 2028. BioNTech may also earn up to $7.6 billion more in development, regulatory and commercial milestones, Bristol said. The companies will share global profits and losses from the drug equally, and joint development and manufacturing costs will also be shared on a 50/50 basis, subject to some exceptions. BNT327, part of a drug category known as bispecific antibodies, is currently being tested as a first-line treatment in extensive stage small cell lung cancer and non-small cell lung cancer. More than 1,000 patients have been treated with the drug to date.
Wall Street Journal
5 days ago
- Business
- Wall Street Journal
Bristol CEO: Pharma Tariffs Must Not Jeopardize Medicine Supplies
Bristol-Myers Squibb Chief Executive Chris Boerner said at The Wall Street Journal's Future of Everything festival on Thursday that potential tariffs targeting the drug industry from the Trump administration must not create supply constraints. Bristol and other drugmakers are bracing for tariffs targeting pharmaceuticals shipped to the U.S. from other countries. The administration has been conducting an investigation into such levies, and analysts expect them to be announced in coming weeks. 'The most important thing we've been doing on this topic is engaging with the administration to educate them on how if you're going to do tariffs—it may not be the policy we would have preferred—but if you're going to do it, do it without messing things up,' he said.
Yahoo
06-02-2025
- Business
- Yahoo
Bristol Myers forecasts 2025 revenue below estimates after strong quarter
By Michael Erman (Reuters) -Bristol Myers Squibb on Thursday posted better-than-expected fourth-quarter earnings, but said its 2025 revenue would fall more sharply than Wall Street had forecast due to generic competition for some of its older drugs. Shares of the drugmaker fell nearly 4% to $57.33 before the bell. The company forecast 2025 revenue of around $45.5 billion, down from $48.3 billion in 2024 and below analyst expectations of $47.4 billion, according to LSEG data. It forecast 2025 earnings in the range of $6.55 to $6.85 a share, below the average analyst estimate of $6.92 a share. The drugmaker also said it is expanding its cost-cutting program by an additional $2 billion by the end of 2027, bringing the total cost cuts under the program to $3.5 billion. Bristol has already been contending with sharp revenue loss from its cancer drug Revlimid, which brought in nearly $13 billion in 2021 and just $5.8 billion last year due to generic rivals. But Chief Executive Chris Boerner said in an interview the company will also be hurt in 2025 by the loss of exclusivity of other cancer drugs Pomalyst, Sprycel and Abraxane. "We've been very clear about our focus, which is driving sustained top-tier growth as we exit the decade, and specifically increasing the velocity of growth in the last couple of years exiting this decade and into the next," Boerner said. "Our focus is working on making sure that the period in which the business is declining is as short and as shallow as possible." Shares of Bristol Myers closed at $59.71 on Wednesday. The stock is up around 25% over the past year, driven in part by investor enthusiasm for its new schizophrenia drug Cobenfy, which was approved by the FDA last September. The company said it earned $3.4 billion, or $1.67 per share in the fourth quarter, down from $3.5 billion, or $1.70 per share, a year ago. Analysts, on average, had forecast earnings of $1.46 a share for the quarter. Revenue in the quarter rose 8% to $12.3 billion, topping analyst estimates of $11.6 billion. Sales of its cancer immunotherapy Opdivo rose 4% to $2.5 billion, while Revlimid sales fell 8% to $1.3 billion. Analysts had expected sales of those drugs to be around $2.5 billion and $1.1 billion, respectively. Sign in to access your portfolio
Reuters
06-02-2025
- Business
- Reuters
Bristol sees sharper 2025 revenue drop after better-than-forecast Q4
Feb 6 (Reuters) - Bristol Myers Squibb (BMY.N), opens new tab on Thursday posted better-than-expected fourth quarter earnings, but said its 2025 revenue would fall more sharply than Wall Street had forecast due to generic competition for some of its older drugs. The company forecast 2025 revenue of around $45.5 billion, down from $48.3 billion in 2024 and below analyst expectations of $47.4 billion, according to LSEG data. It forecast 2025 earnings in the range of $6.55 to $6.85 a share, below the average analyst estimate of $6.92 a share. The drugmaker also said it is expanding its cost-cutting program by an additional $2 billion by the end of 2027, bringing the total cost cuts under the program to $3.5 billion. Bristol has already been contending with sharp revenue loss from its cancer drug Revlimid, which brought in nearly $13 billion in 2021 and just $5.8 billion last year due to generic rivals. But Chief Executive Chris Boerner said in an interview the company will also be hurt in 2025 by the loss of exclusivity of other cancer drugs Pomalyst, Sprycel and Abraxane. "We've been very clear about our focus, which is driving sustained top-tier growth as we exit the decade, and specifically increasing the velocity of growth in the last couple of years exiting this decade and into the next," Boerner said. "Our focus is working on making sure that the period in which the business is declining is as short and as shallow as possible." Shares of Bristol Myers closed at $59.71 on Wednesday. The stock is up around 25% over the past year, driven in part by investor enthusiasm for its new schizophrenia drug Cobenfy, which was approved by the FDA last September. The company said it earned $3.4 billion, or $1.67 per share in the fourth quarter, down from $3.5 billion, or $1.70 per share, a year ago. Analysts, on average, had forecast earnings of $1.46 a share for the quarter. Revenue in the quarter rose 8% to $12.3 billion, topping analyst estimates of $11.6 billion. Sales of its cancer immunotherapy Opdivo rose 4% to $2.5 billion, while Revlimid sales fell 8% to $1.3 billion. Analysts had expected sales of those drugs to be around $2.5 billion and $1.1 billion, respectively.
