Leerink Swann Remains Positive on Bristol-Myers Squibb Co (BMY) Despite Disappointing Checkmate-026 Data Release at ESMO

In a research report released yesterday, Leerink Swann analyst Seamus Fernandez reiterated an Outperform rating on shares of Bristol-Myers Squibb Co (NYSE:BMY), after the healthcare giant announced new data from Checkmate-026, a phase 3 study of Opdivo (nivolumab) in treatment-naïve patients with advanced non-small-cell lung cancer, at the 2016 European Society for Medical Oncology (ESMO) Congress.

Fernandez commented, “BMY’s 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%. And while this was largely consistent with company feedback, we expect shares to be down significantly in the face of the spectacular data for Keytruda monotherapy. The ESMO discussant’s and BMY’s explanations for such a poor outcome left us wanting.”

However, “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.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Seamus Fernandez has a yearly average return of 3.7% and a 52% success rate. Fernandez has a -7.9% average return when recommending BMY, and is ranked #960 out of 4184 analysts.

Out of the 20 analysts polled by TipRanks, 9 rate Bristol Myers Squibb stock a Buy, 10 rate the stock a Hold and 1 recommends a Sell. With a return potential of 43%, the stock’s consensus target price stands at $70.59.


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