Summary
Shares of Bristol-Myers Squibb Co. have surged from its February low and are about to break out.
Key cancer drug Opdivo has increased revenues each quarter but the trend of its high growth rate can’t continue and may be unsustainable.
Pricing pressures may be put on the growing hepatitis C portfolio of Bristol-Myers from fierce competition.
The BMY forward PE multiple seems to be stretched but taking out an acquisition premium, it would come down to the level of its peers.
Shares of Bristol-Myers Squibb Co. (NYSE:BMY) have surged 25.71% from the February low, along with the S&P 500 Healthcare sector, up about 14.35% despite the political dark cloud hanging over prescription drug prices. Presumptive nominees from both parties have continued to ramp up their rhetoric against the pharmaceutical and biotechnology industries, with Congress also jumping into the debate and holding a series of hearings on the issue of drug prices. Speculators have been using the political noise as a backdrop to take short positions against the sector.
Bristol-Myers Tehnical Chart
Since late April, Bristol-Myers stock has been bumping into the upper trendline resistance of the ascending wedge chart pattern and is about to break out after the company reported better-than-expected earnings for the first-quarter 2016 and raised its outlook for the year. Strong revenue and earnings growth are driven by key drugs, including the anti-PD-1 (programmed death receptor-1) immuno-oncology drug Opdivo (nivolumab), anticoagulant drug Eliquis (apixaban) and hepatitis C drug Daklinza (daclatasvir).
According to the company's financial statement, Opdivo's revenue now accounts for over 50% of the company's oncology product portfolio, compared to just under 5% a year ago. Eliquis sales more than doubled in the first-quarter 2016. Bristol-Myers reported 62% growth of its hepatitis C franchise, compared to the same quarter last year, with most of the growth coming from sales in the U.S. after the U.S. Food and Drug Administration, or FDA, modified and expanded the Daklinza indications in February 2016 for patients with chronic hepatitis C virus, or HCV, genotype 1 or 3. Sales of hepatitis C drugs outside the U.S. actually declined over 36% on a year-on-year basis.
Shares of Bristol-Myers Squibb Co. have surged from its February low and are about to break out.
Key cancer drug Opdivo has increased revenues each quarter but the trend of its high growth rate can’t continue and may be unsustainable.
Pricing pressures may be put on the growing hepatitis C portfolio of Bristol-Myers from fierce competition.
The BMY forward PE multiple seems to be stretched but taking out an acquisition premium, it would come down to the level of its peers.
Shares of Bristol-Myers Squibb Co. (NYSE:BMY) have surged 25.71% from the February low, along with the S&P 500 Healthcare sector, up about 14.35% despite the political dark cloud hanging over prescription drug prices. Presumptive nominees from both parties have continued to ramp up their rhetoric against the pharmaceutical and biotechnology industries, with Congress also jumping into the debate and holding a series of hearings on the issue of drug prices. Speculators have been using the political noise as a backdrop to take short positions against the sector.
Bristol-Myers Tehnical Chart
Since late April, Bristol-Myers stock has been bumping into the upper trendline resistance of the ascending wedge chart pattern and is about to break out after the company reported better-than-expected earnings for the first-quarter 2016 and raised its outlook for the year. Strong revenue and earnings growth are driven by key drugs, including the anti-PD-1 (programmed death receptor-1) immuno-oncology drug Opdivo (nivolumab), anticoagulant drug Eliquis (apixaban) and hepatitis C drug Daklinza (daclatasvir).
According to the company's financial statement, Opdivo's revenue now accounts for over 50% of the company's oncology product portfolio, compared to just under 5% a year ago. Eliquis sales more than doubled in the first-quarter 2016. Bristol-Myers reported 62% growth of its hepatitis C franchise, compared to the same quarter last year, with most of the growth coming from sales in the U.S. after the U.S. Food and Drug Administration, or FDA, modified and expanded the Daklinza indications in February 2016 for patients with chronic hepatitis C virus, or HCV, genotype 1 or 3. Sales of hepatitis C drugs outside the U.S. actually declined over 36% on a year-on-year basis.
No comments:
Post a Comment