Bristol-Myers Squibb (BMY) CM-026 Data Disappointing, Sees Shares Under Pressure - Leerink

October 10, 2016 8:11 AM EDT
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Price: $49.23 -11.28%

Rating Summary:
    10 Buy, 12 Hold, 5 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Leerink Partners analyst Seamus Fernandez notes Bristol-Myers Squibb Co. (NYSE: BMY) much anticipated Checkmate-026 data presented at ESMO was disappointing with no signal of benefit on PFS or OS at the >5% or >50% threshold, and only modest differentiation on response rate in the 88 patients with PDL1 biomarker positivity ≥50. While this was largely consistent with company feedback, they expect shares to be down significantly tomorrow in the face of the spectacular data for Keytruda monotherapy.

Fernandez commented, "The ESMO discussant's and BMY's explanations for such a poor outcome left us wanting. At its analyst meeting, BMY presented encouraging 16-month follow up data for the Opdivo + Yervoy combination in CM-012, highlighting median PFS of 12.7 months in all PDL1 positive patients with 87% of patients alive at 12 months. The company also suggested at the analyst meeting that it may have a fast track to approval of the combination, but it would not discuss the specific path."

The analyst added, "The ESMO discussant and recent MEDACorp KOL feedback (LINK) continue to be strongly supportive of PD-1/CTLA-4 combinations in 1L NSCLC. So despite the disappointment in what appears to have been a deeply flawed trial overall in CM-026, investor concerns about mgmt. of CM-227 and risk of increased competition, along with a relatively long wait to the final -227 result, we remain confident in the overall IO opportunity and BMY's ability to remain a leader over time."

The firm maintained an Outperform rating on BMY.

For more ratings news on Bristol-Myers Squibb Co. click here.

Shares of Bristol-Myers Squibb Co. closed at $55.43 yesterday.

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