Bristol-Myers Squibb (NYSE: BMY): One of a kind
Bristol-Myers Squibb (NYSE: BMY) rose by 15 percent in its third quarter earnings, beating all expectations and produced good mid-stage data on an anti-cancer drug called Opdivo. The market was shocked to see a pharmaceutical company posting such strong numbers and moving up by such a large percentage. But there are definite reasons behind Bristol-Myers Squibb (NYSE: BMY)’s success. Bristol-Myers Squibb (NYSE: BMY)’s success was largely driven by the efficient drugs it produced.
While the pharma company lost 4 percent in its total revenue of 3.92 million dollars, because it was stripped of the diabetes alliance, it made 216 million dollar on a blood thinner drug Eliquis, which upped the sales by 400 percent. Cancer drugs Yervoy and Sprycel produced 47% and 22% each respectively. As far as profits are concerned, Bristol-Myers Squibb (NYSE: BMY) made 0.45 dollars earnings per share. The estimates made by Wall Street were 0.42 EPS and 3.82 billion dollars revenue.
Bristol-Myers Squibb (NYSE: BMY) managed to beat that by a good margin. Another factor that played out in the favor of Bristol-Myers Squibb (NYSE: BMY)’s success in this quarter was the drug Opdivo. The cancer drug Opdivo produced great results and 41 percent of the patients using the drug were still alive after one year. This proved formidable enough as a line of defense against cancer. For now, the Bristol-Myers Squibb (NYSE: BMY) CEO is working on a strategy to make big acquisitions to highlight the growth of the company and attract clients.
However, this strategy can prove to be too costly for the company if the acquisitions don’t pay off well. Unfortunately for pharma companies, they have to create business for themselves by developing drugs which can take quite a lot of time, including the trial and tribulation process when the drug finally gets approved by the health councils. What Bristol-Myers Squibb (NYSE: BMY) needs to do is expand its drug portfolio, and highlight its cancer drug Opdivo.
This anti cancer drug could be the company’s blockbuster drug. Along with the blood thinner drug, Opdivo can be something so huge that it’ll bring money for the company for years of further research. Call it a long term prospect but the initial results for the drug came out superb. All Bristol-Myers Squibb (NYSE: BMY) has got to do is keep producing new drugs related to common diseases. One other thing that is great about Bristol-Myers Squibb (NYSE: BMY) is that as compared to other pharmaceutical companies, its drug producing rate is frequent and the drugs are inexpensive. This sends out a moral message to its customers as well.
Bristol-Myers Squibb (NYSE: BMY) is already ahead of the estimates drawn out for it by analysts for the next 3-4 years, but the company shouldn’t get too proud. Pharmaceutical companies aren’t really preferred by investors as it’s an extremely volatile territory. But if things play out well for Bristol-Myers Squibb (NYSE: BMY) it just might become the company that every investor on the market is grappling for.