Bristol-Myers (BMY) Stock Slides on Swedish Acquisition
Bloomberg News
NEW YORK (TheStreet) -- Shares of Bristol-Myers Squibb (BMY) - Get Report are down 0.18% to $73.65 in pre-market trade after agreeing to pay $520 million for Swedish company Cormorant Pharmaceuticals.
Bristol-Myers, a New York-based pharmaceuticals company, will pay privately-owned Cormorant $95 million in upfront and near-term contingent milestone payments, the remaining $425 million in future milestone payments.
Cormorant develops therapies for cancer and other rare diseases, and Bristol-Myers acquired the company in an attempt to grow its division for cancer drugs.
Cormorant holds rights to an immunotherapy treatment, HuMax-IL8, which targets a protein in solid tumors that suppresses the immune system so the tumor can grow. Under the terms of the deal, Bristol-Myers now owns the drug.
After closing, HuMax-IL8 will join Bristol-Myers's arsenal of immunotherapy cancer treatments including Yervoy, approved in 2011 to treat advanced skin cancer, and Opdivo, approved in 2014 for lung and skin cancer.
In 2015, Bristol Myers reported $2.1 billion in global sales from Opdivo and Yervoy.
Separately, TheStreet Ratings rated this stock as a "buy" with a ratings score of B+.
The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income, expanding profit margins and solid stock price performance.
TheStreet Ratings feels its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
You can view the full analysis from the report here: BMY
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.