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Goldman bullish on Bristol-Myers Squibb stock amid 'encouraging' oncology updates

EditorEmilio Ghigini
Published 09/16/2024, 05:37 AM
© Reuters.
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On Monday, Goldman Sachs reiterated its Buy rating on Bristol-Myers Squibb Co. (NYSE:BMY) stock, maintaining a price target of $57.00. The firm's assessment followed Bristol-Myers Squibb's presentation at the European Society for Medical Oncology (ESMO) event, where the company discussed its oncology portfolio and clinical stage assets.


Bristol-Myers Squibb highlighted results from the Phase 2 RELATIVITY-104 study at ESMO, which investigated a treatment regimen combining nivolumab, relatlimab, and chemotherapy for a subset of non-small cell lung cancer (NSCLC) patients in the first-line (1L) setting.


The regimen showed additional benefit in patients with non-squamous histology and PD-L1 expression levels between 1-49%, achieving an objective response rate (ORR) of 60.7% compared to 30.0% with nivolumab and chemotherapy alone. Median progression-free survival (mPFS) also improved to 9.8 months from 5.5 months.


The company is now advancing this treatment regimen into Phase 3 trials (RELATIVITY-1093) targeting NSCLC patients with similar PD-L1 expression levels. The goal is to demonstrate an improvement over the current standard of care, which is pembrolizumab combined with chemotherapy as seen in the KEYNOTE-189 study. These upcoming trials will encompass approximately 20-30% of first-line NSCLC patients.


Goldman Sachs noted that the results from the ESMO update are seen as encouraging, but a more robust assessment from Phase 3 studies is needed to determine the relative benefit of the treatment.


The firm also mentioned the competitive landscape, referencing high-profile data from Summit Therapeutics (NASDAQ:SMMT) and BioNTech (NASDAQ:BNTX), which are developing treatments that may potentially challenge the current standard of care.


In conclusion, Goldman Sachs views the impact of the ESMO update on Bristol-Myers Squibb's shares as neutral relative to expectations, pending further outcomes from the Phase 3 studies.


In other recent news, Jefferies maintained its Hold rating on Bristol-Myers Squibb stock, citing a 4% upside potential, and raised its price target to $51.00.


This adjustment followed developments in the pharmaceutical industry related to anticoagulant drugs and a more positive outlook on Bristol-Myers Squibb's factor XIa (FXIa) inhibitor, milvexian, resulting in projected sales of $2.8 billion.


Additionally, Zenas BioPharma, supported by Bristol-Myers Squibb among other investors, has initiated the process for a U.S. initial public offering (IPO). This move signals a positive shift in the market's receptivity to new listings.


The U.S. Food and Drug Administration (FDA) is reviewing Bristol Myers Squibb's Opdivo (nivolumab) in combination with Yervoy (ipilimumab) for treatment of unresectable hepatocellular carcinoma (HCC). Also, Bristol Myers Squibb is seeking approval from the European Medicines Agency (EMA) to extend the use of Breyanzi for certain follicular lymphoma patients.


Finally, Bristol Myers Squibb's blood thinner Eliquis has been selected by the Biden administration for price negotiations with the Medicare health program, as part of the Inflation Reduction Act's efforts to control drug prices. These are all recent developments, highlighting Bristol-Myers Squibb's ongoing activities in the pharmaceutical industry.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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