Bristol Myers (BMY) Breaks Out of a Rut; Can It Last?

Bucking a long-lived trend of lackluster share performance, Bristol Myers Squibb Co. (NYSE: BMY) is one of today's top performers following a positive presentation this weekend at ASCO, which triggered a Goldman Sachs upgrade.

This weekend, Bristol Myers announced positive survivial results from a Phase 3 trial results for ipilimumab in the most deadliest of cancers, metastatic melanoma.

The company said 44 to 46 percent of patients treated with ipilimumab were alive at one year compared to 25 percent of patients treated with the control arm. At two years, 22 to 24 percent of patients treated with ipilimumab were alive compared to 14 percent of patients treated with the control arm.

Bristol Myers' drug harnesses the immune system to treat cancers like metastatic melanoma. Ipilimumab works by blocking the inhibitory signal of CTLA-4, a molecule on T-cells that plays a critical role in regulating natural immune response. Suppressing CTLA-4 can augment the immune system's T-cell response in fighting disease.

Following data at ASCO, analysts Goldman Sachs upgraded Bristol Myers from Neutral to Buy with a price target of $30.

Goldman said Bristol's drug pipeline is attractive and ipilimumab is "on track to potentially drive meaningful
upside to current revenue and margin estimates given optionality to first line melanoma and additional cancer indications."

Goldman thinks ipilimumab could have the spark to break Bristol out of the "negative terminal value rut that currently plagues all major pharma."

If ipilimumab is positive in 1st line therapy, due in the 2nd-half of 2010 or early 2011, investors may start
considering ipilimumab as a platform for other tumor types, according to the firm.

The firm raised sales estimates for ipilimumab from $500 million in 2015 to $780 million. They said ipilimumab has the potential to be a $1.3 billion drug in melanoma and significantly larger from other tumor types. The firm raised 2011 EPS estimates from $2.26 to $2.30 and also raised EPS estimates for 2012-2015.

Shares of Bristol-Myers are up 7 percent to $24.02.

Market Moving News and Intelligence – Free Sign-Up
http://www.streetinsider.com/premium_content.php

You May Also Be Interested In

• UBS Reiterates Buy Rating on Bristol-Myers Squibb Co. (BMY)
• Wells Fargo Upgrades Portland General Electric Company (POR) to Overweight
• KeyBanc Upgrades Innovage Holding Corp (INNV) to Overweight