Analyst Evan Seigerman of BMO Capital assigned a Hold rating on Bristol-Myers Squibb (BMY – Research Report), with a price target of $55.00.
Evan Seigerman has given his Hold rating due to a combination of factors concerning the efficacy and safety profile of Bristol-Myers Squibb’s Abecma. His assessment is primarily influenced by the FDA briefing documents released prior to the advisory committee meeting, which highlighted concerns about an increased incidence of death within the first nine months of treatment when compared to the standard of care. Although there was an improvement in overall survival (OS) post nine months, the documents expressed caution in valuing this improvement due to potential data censoring and the absence of a clear OS benefit that could offset the statistically significant improvement in progression-free survival (PFS).
Furthermore, the FDA has underscored the importance of OS as the primary endpoint in oncology trials, which adds weight to the issue of Abecma failing to demonstrate a significant OS benefit in relapsed/refractory multiple myeloma. The worse survival curve in the initial nine months and the lack of convincing evidence of an OS benefit raise substantial doubts about Abecma’s efficacy. These concerns have led to reduced optimism regarding Abecma’s potential approval and have influenced Seigerman’s perspective on Bristol-Myers Squibb’s stock, suggesting that the uncertainty around Abecma may impact the company’s valuation and growth prospects.
Seigerman covers the Healthcare sector, focusing on stocks such as Eli Lilly & Co, Amgen, and Regeneron. According to TipRanks, Seigerman has an average return of 8.0% and a 47.98% success rate on recommended stocks.
In another report released on March 11, Societe Generale also downgraded the stock to a Hold with a $51.00 price target.
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Bristol-Myers Squibb (BMY) Company Description:
Founded in 1933, New York-based Bristol-Myers Squibb Co. is a global pharmaceutical company, which engages in the development, licensing, manufacturing, distribution, and sale of biopharmaceutical products in several therapeutic areas. These include cancer, HIV/AIDS, cardiovascular disease, diabetes, hepatitis, rheumatoid arthritis and psychiatric disorders.
Read More on BMY:
- Bristol Myers’ repotrectinib receives FDA orphan designation
- Bristol-Myers Squibb (NYSE:BMY) Shrugs off Analyst Cut
- Bristol Myers downgraded to Hold from Buy at Societe Generale
- Bristol Myers reports FDA approves Opdivo for first-line metastatic UC treatment
- Healthcare Stocks Retreat after New Task Force Is Formed
