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Investing.com - Cantor Fitzgerald has reiterated its Neutral rating and $55.00 price target on Bristol-Myers Squibb Co. (NYSE:BMY), currently trading at $46.72, following the company’s announcement of plans to develop an independent immunology-focused entity. According to InvestingPro analysis, BMY appears undervalued compared to its Fair Value.
Bristol-Myers Squibb and Bain Capital are partnering to create a new company focused on five early- to mid-stage BMY assets in the immunology space. The assets involved in the deal were not previously on investors’ radar, according to Cantor Fitzgerald. The pharmaceutical giant, with a market capitalization of $94.59 billion and robust annual revenue of $47.64 billion, maintains a "GOOD" financial health score according to InvestingPro metrics.
The move signals a strategic shift for Bristol-Myers Squibb’s immunology therapeutic area, with the company now appearing more focused on its CD19 NEX-T franchise. The pharmaceutical giant will maintain optionality through two late-stage assets—admilparant and obexelimab—which are expected to produce results over the next two years.
Cantor Fitzgerald believes this restructuring could provide Bristol-Myers Squibb greater flexibility in maintaining margins through R&D expense management as the company faces loss of exclusivity (LOE) challenges next year.
The firm does not expect significant stock reaction to the announcement of the new immunology-focused entity, as the assets involved were not central to investor focus.
In other recent news, Bristol Myers Squibb has announced several key developments. The company, in collaboration with Bain Capital, has formed a new biotech company dedicated to autoimmune therapies, with a $300 million financing commitment. This new entity will develop five immunology assets, including afimetoran, which is in Phase 2 trials for systemic lupus erythematosus. Additionally, the U.S. Food and Drug Administration has accepted Bristol Myers Squibb’s application for Sotyktu for treating active psoriatic arthritis, with a target action date set for March 6, 2026. However, the company’s Phase 3 INDEPENDENCE study of Reblozyl for myelofibrosis-associated anemia did not meet its primary endpoint, although it showed a numerical improvement in transfusion independence. In a separate initiative, Bristol Myers Squibb and Pfizer (NYSE:PFE) will offer a 40% discount on Eliquis to cash-paying patients, starting September 8. These developments reflect the company’s ongoing efforts in drug development and patient support initiatives.
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