According to Credit Suisse analysts, investors are intrigued by Bristol-Myers Squibb but are awaiting the integration of Celgene and the results of key studies, MarketWatch reported Wednesday.
"The general theme has been that, while there is likely value to be had in the name, there is also no rush to get into the stock ahead of upcoming data readouts and the close of the Celgene acquisition," remarked Credit Suisse's Vamil Divan.
Divan specifically noted that investors are awaiting data for a study of the combination of Opdivo and Yervoy in non-small-cell lung cancer, for which expectations are low.
Divan also cited muted investor enthusiasm for Celgene's "big five" pipeline assets, namely the multiple sclerosis drug ozanimod, myelofibrosis treatment fedratinib, thalassemia therapy luspaterecept and CAR-T therapies lisocabtagene maraleucel and bb2121, all of which could reach the market by the end of next year.
"Our recent call with a multiple sclerosis expert suggests a limited opportunity for the drug in that market where there are numerous other orals available, while there are many current and likely future competitors targeting the inflammatory bowel disease market as well," Divan explained.
The news comes after Bristol-Myers Squibb announced a shakeup of its management team, including the departure of chief scientific officer Tom Lynch as well as the planned retirement of chief financial officer Charles Bancroft next year.
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