Bristol-Myers Climbs After Jefferies Upgrades Stock On Schizophrenia Drug’s $10B Potential: Retail Is Excited
In September, Bristol-Myers received U.S. approval for Cobenfy, marking the first new class of schizophrenia drug approval in seven decades.
FollowShares of Bristol-Myers Squibb Co. rose by about 1% on Monday afternoon following an upgrade from Jefferies.
The brokerage upgraded the stock to ‘Buy’ from ‘Hold’ and raised its price target to $70, up from $63.
Jefferies is increasingly confident in Cobenfy, a schizophrenia drug recently approved in the U.S., seeing the treatment as a potential $10 billion-plus product.
It also expressed confidence that Milvexian, another drug in Bristol-Myers’ pipeline, will succeed in meeting its non-inferiority goals.
Jefferies highlighted that it now has better visibility into the company’s profit-and-loss and expects earnings per share (EPS) to see growth, dismissing concerns that the company’s EPS will hit a floor below $6.
The brokerage expects operating leverage to drive improvements, with an EPS trough expected no later than 2029.
On Stocktwits, sentiment for Bristol-Myers turned ‘extremely bullish’ from ‘neutral’ the previous day, with a noticeable increase in message volume.
In September, Bristol-Myers received U.S. approval for Cobenfy, marking the first new class of schizophrenia drug approval in seven decades, according to Bloomberg.
The approval followed a significant acquisition in which Bristol-Myers purchased Karuna Therapeutics for $14 billion last year to secure access to the treatment.
Some of its key products, such as Eliquis and Opdivo, are losing patent exclusivity in the coming years.
Cobenfy is reportedly priced at $1,850 per month (around $22,500 annually), but the actual out-of-pocket cost for patients will vary based on insurance coverage.
Bristol-Myers’ stock is up 9.43% year-to-date (YTD), reflecting growing optimism surrounding its future prospects.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
subscribe to Asianet Newsable WhatsApp channel by clicking here.For more reliable and latest news
subscribe to Asianet Newsable Telegram channel by clicking here.
