Bristol Myers Squibb Makes Large Strides in Opdivo Efficacy Trials

Jeeho Yun

On Thursday afternoon, Bristol Myers Squibb announced that “Opdivo Phase3 CheckMate-274 adjuvant trial in high-risk, muscle invasive bladder cancer (MIBC) met its primary end point of disease-free survival (DFS).” Analysts at Morgan Stanley delved into the specifics and implications of the news, and ultimately reiterated their their Overweight rating at $67 price target.

The good news is only the latest Bristol Myers Squibb has released on Opdivo’s efficacy, which is a prescription medicine primarily used for lung cancer. Over at Action Alerts Plus the team gave us a more specific and versatile breakdown of the drug, citing other studies on the drug that it’s a “programmed death-1 (PD-1) immune checkpoint inhibitor that is designed to uniquely harness the body's own immune system to help restore anti-tumor immune response. By harnessing the body's own immune system to fight cancer, Opdivo has become an important treatment option across multiple cancers.”

Bristol announced “positive top-line results” for bladder cancer, all the while competitor Roche “failed to show DFS benefit in intent-to-treat population... and by PD-L1 status,” giving Bristol a two pronged advantage in the public markets. 

Meanwhile the equity research team at JP Morgan believes that this news is a perfect opportunity for the New York-based company to undergo an “incremental revenue driver with a market opportunity of >$1bn,” while analysts at Morgan Stanley give a more conservative outlook with a $0.5B US opportunity for adjuvant bladder cancer.

At this point, Bristol has all the wind at their back. With investors celebrating the good news, now isn’t the time for the company to slow down, as risks that come with prospective products begin to show their head. As a healthcare company, the effectiveness of products and the ability to expand an drugs label (the treatments for which the drug can be prescribed) is of paramount importance, and they’ll experience steep financial shortfalls if they fail to meet basic requirements via litigation/regulatory risks and product launch delay.

Bristol Myers Squibb is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells these stocks? Learn more now.

Disclosure: At the time of publication, I have no positions in any of the securities mentioned in this article. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for creating this article (other than from TheStreet) and have no business relationship with any company whose stock is mentioned in this article.

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Comments (4)
No. 1-4
JavierFrausto
JavierFrausto

Great news for the medical field. Thankful for these scientists.

JPotts
JPotts

Definitely a plus for patients fighting cancer!! WE Love to see it!

kperkins2
kperkins2

its encouraging seeing so many cancer treatments being developed!

Nikhil Gunderia
Nikhil Gunderia

This is great news for the company and the medical field