NEW YORK (TheStreet) -- Bristol-Myers (BMY) needed a new prescription after its stock fell 6% Friday. The drop followed news of disappointing results for a promising cancer drug. The CNBC "Fast Money Panel" agreed the stock received unfair treatment considering an otherwise strong product pipeline.
"When you look at the depth and breadth of their products there's a lot more happening here." said Josh Brown, CEO and co-founder of Ritholz Wealth Management.
Tim Seymour, managing partner of Triogem Asset Management, said investors "were overreacting to Friday news." He added that there would be opportunities "to pick up the stock."
The traders discussed movement in the white-hot semiconductor sector, rising oil prices and the German stock market,which has outperformed the S&P 500.
In revisions to an earlier study, Bristol Myers reported its Opdivo was not as effective as expected in treating lung tumors and melanoma with low level proteins. The company had hoped that the drug would decrease tumor size at a range of protein levels.
The panel didn't think that the drop in price would have repercussions for the biotech and pharmaceutical industries. Seymour said he was long Celgene (CELG). Guy Adami, managing director at stockmonster.com, said that despite an underperforming stock price, biotech Amgen (AMGN) has "a great pipeline" of therapies.
Oil prices have surged in recent weeks. However, guest Tom Kloza, a co-founder of the oil price research service OPIS, was certain that oil ministers from the Organization of the Petroleum Exporting Countries meeting next week would cut production. "Anything that cuts output would be an absolute shock," he said.
He said that refiners were generating big margins charging $80 to $85 a barrel and so are not interested in challenging oil producers. "Those numbers will work for them," he said.
Oil producers and companies servicing the industry were also buoyed Thursday by a U.S. Environmental Protection Agency ruling. The EPA eased annual requirements for ethanol in gasoline. A 2007 law had required refiners to mix an increasing proportion of ethanol into gas, but the regulation had met with criticism by groups representing the oil and related service industries.
Kloza called the Friday announcement by the EPA "a big win" for refiners" and a "loss for ethanol producers." He added, "It's going to be a great summer for refiners."
Seymour said to short Royal Dutch Shell (RDS.A) but go long on Exxon (XOM). Brown said that based on historical precedent, the surging oil market foreshadowed gains for the S&P 500 for the remainder of the year. He said that "the worst place to play is in the utility and energy sectors" and that investors would do better in industrial and technology.