Bristol-Myers Squibb Company BMY experienced slight growth after Carl Icahn, billionaire activist-investor, reportedly wants to take stake in the company.
Bristol-Myers, a global leader in biopharmaceutical, hasn’t been able to convince shareholders that its product can compete against rivals like Merck & Co MRK. A product that the company pioneered is cancer immunotherapy, which aims to fight the diseases using the body’s immune system.
The company took a hit in January when they announced that their lung-cancer treatment wouldn’t get approval as fast as hoped. Investors feared the delay would put Bristol-Myers behind its competitors.
On Tuesday, the company announced that it would add three directors to its board, making it a total of 14 seats, and buy back $2 billion in stock in a pact with another activist, Jana Partners LLC. Current Chairman Lamberto Andreotti will also retire, as it was announced back in December.
The Wall Street Journal reported that Icahn, who has a successful history in pushing for deals among pharmaceutical companies, owns a large stake and believe the company has a good potential to become an “attractive takeover.”
Bristol-Myers is a Zacks Rank #3 (Hold). The company’s stock rose slightly right after Icahn’s interest was reported at 4 p.m. in New York.
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