Bristol Myers Stock Gains 11.4% in a Year: Time to Buy or Sell?

It was a good year for biotech giant Bristol Myers BMY. Shares of the company have risen 11.4% against the industry’s 15.6% decline. The stock has also outperformed the sector but underperformed the S&P 500 during this period.

The outperformance was more pronounced in the second half of the year, buoyed by strong quarterly performances, an increase in annual guidance and approval of new drugs.

This stupendous rally after touching a 52-week low in July has enabled BMY to regain its lost territories. The stock touched a 52-week high of $61.08 on Nov. 11.

Bristol Myers Outperforms Industry &Sector, Underperforms S&P 500

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Newer Drugs Fuel BMY’s Top Line

Drugs like Reblozyl, Breyanzi, Camzyos and Opdualag have enabled BMY to stabilize its revenue base amid generic competition for its legacy drugs. Thalassemia drug Reblozyl, for which BMY has a collaboration agreement with Merck MRK, has put up a stellar performance since its approval, with strong growth in the United States and international markets. The drug should contribute significantly in the coming decade.

Sales of its oncology drug, Opdualag, have also been robust, fueling the top line. Per BMY, the drug has already become a standard of care in first-line melanoma settings in the United States, with a market share of 30%.

Sales of CAR T cell therapy, Breyanzi, also continued to gain traction from the approval of new indications and expanded manufacturing capacity.

Acquisitions, Positive Regulatory Updates Boost BMY

The FDA approval for xanomeline and trospium chloride (formerly KarXT), an oral medication for the treatment of schizophrenia in adults, has expanded BMY’s portfolio. The drug was approved under the brand name Cobenfy, representing the first new pharmacological approach to treating schizophrenia in decades. The approval of Cobenfy for schizophrenia broadens BMY’s portfolio and validates the acquisition of Karuna Therapeutics.

BMY had earlier acquired Mirati Therapeutics for $4.8 billion. The acquisition added Mirati’s lung cancer drug Krazati (adagrasib) to its oncology portfolio.

The acquisition of RayzeBio added its proprietary radiopharmaceutical platform, along with its innovative pipeline of potentially first-in-class and best-in-class actinium-based radiopharmaceutical therapeutics, to Bristol Myers’ oncology portfolio.

Earlier, the Committee for Medicinal Products for Human Use (“CHMP”) of the European Medicines Agency recently gave a positive opinion for repotrectinib, a next-generation tyrosine kinase inhibitor.