|Bid||44.65 x 1300|
|Ask||44.66 x 4000|
|Day's Range||44.59 - 45.98|
|52 Week Range||44.30 - 63.69|
|Beta (3Y Monthly)||0.79|
|PE Ratio (TTM)||14.20|
|Earnings Date||Jul 25, 2019|
|Forward Dividend & Yield||1.64 (3.58%)|
|1y Target Est||55.90|
(Bloomberg Opinion) -- AbbVie Inc.’s $63 billion purchase of Botox maker Allergan Inc. is the third super-sized drug deal announced in the past 14 months, and the second just this year after Bristol-Myers’s Squibb Co.’s even bigger $74 billion purchase of Celgene Corp. These huge combinations are no fluke: In the last decade, the biopharmaceutical industry has pursued more $40 billion-plus transactions than any other sector, according to data compiled by Bloomberg. These big deals happen for a reason. Drug development is difficult, unpredictable and time consuming; even when the billions pharmaceutical companies spend on R&D or strategic purchases and partnerships bear fruit with top-sellers, those blockbusters still face the prospect of expiring patents and an eventual decline in sales. That pressures drugmakers into bigger acquisitions, in spite of their mixed track record and inherently risky and complicated nature. In AbbVie's case, the company needs to find a replacement for its $19 billion-a-year arthritis drug Humira, while Bristol-Myers is too dependent on two key drugs.If pharma giants can’t keep themselves from making big and risky M&A bets, that doesn’t mean investors have to follow suit, or that they’d get much of an edge from doing so. While big pharma deals have resulted in longer-term gains for very patient investors in many cases, the returns don’t look as good compared to the broader market. Of the eight biopharma deals worth more than $40 billion that closed in the last 20 years, only one delivered better returns than the S&P 500 five years after it closed: Merck & Co.’s $47 billion acquisition of Schering-Plough Corp. in 2009 (1):That deal is arguably something of an accidental winner. Long-term success didn’t come from any of the products Merck targeted in the merger; instead, an afterthought of an antibody that was initially set to be sold off became Keytruda, a cancer drug that’s projected to generate $15 billion in sales in 2021.Investors shouldn’t count on buried pipeline treasure to bail out the latest crop of big drug acquisitions. A better bet? Try an index fund. (1) Not included in the group is Takeda Pharmaceutical Co.'s $62 billion purchase of Shire Plc, which closed in January, making return comparisons lessuseful.To contact the author of this story: Max Nisen at firstname.lastname@example.orgTo contact the editor responsible for this story: Beth Williams at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Max Nisen is a Bloomberg Opinion columnist covering biotech, pharma and health care. He previously wrote about management and corporate strategy for Quartz and Business Insider.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
AbbVie has agreed to buy Botox-maker Allergan for $63 billion in a cash-and-stock deal. The news has put the spotlight on a number of healthcare ETFs.
Pfizer's (PFE) commercialized JAK (Janus kinase) inhibitor, Xeljanz, is approved for treating rheumatoid arthritis, psoriatic arthritis, and ulcerative colitis.
Bristol-Myers Squibb (BMY) closed the most recent trading day at $45.77, moving +0.2% from the previous trading session.
AbbVie (ABBV) is on the hunt for their next big revenue driver as their patent for the world???s top-selling drug, Humira, is nearing its end. AbbVie just made a $63 billion deal to acquire Dublin-based Allergan (AGN) in an attempt to keep their drive alive.
Bristol-Myers (BMY) declines as it announces to sell Otezla to settle FTC concerns, while Opdivo fails in liver cancer study.
In the latest update on the pending merger with Celgene (CELG), Bristol-Myers Squibb (BMY) proposed plans to divest Otezla—Celgene’s top-selling non-biologic psoriasis drug.
The S&P 500 edged lower on Monday as losses by healthcare companies overshadowed gains in the technology sector, while investors awaited U.S. President Donald Trump's meeting with Chinese President Xi Jinping at the G20 summit this week. The Nasdaq slipped but tariff-sensitive industrials, headed up by Boeing Co, led the blue-chip Dow Jones Industrial Average to a nominal advance.
The Dow Jones Industrial Average ended little changed Monday as investors looked to the upcoming G-20 summit for a breakthrough in U.S.-China trade talks. agreed to buy Caesars in a $17.3 billion deal that will create the biggest U.S. gaming company. Eldorado Resorts slumped 10.6%.
Celgene will have to divest its blockbuster drug Otezla in order to satisfy drug regulators before completing its merger with Bristol-Myers Squibb, the biopharma company said Monday.
This year, Pfizer (PFE) stock has fallen 0.34% and Bristol-Myers Squibb (BMY) stock has fallen 6.48%. Both companies are focused on strengthening their position in the high-growth oncology and immunology markets. Let's take a closer look at each.
Moody's Investors Service commented that Bristol-Myers Squibb Company's announcement that Celgene Corporation's Otezla will need to be divested in order to gain anti-trust approval to complete the merger of the two companies is credit negative. Celgene is rated Baa2/Prime-2, with the Baa2 rating under review for upgrade. Moody's continues to anticipate a rating of A3 at the conclusion of the review, all other factors being equal.
With the G20 summit right around the corner, stocks were relatively muted on Monday. Investors are trying to position themselves ahead of earnings next month, the Fed's looming rate cut and trade headlines leading up and following the G20 summit. Let's look at some top stock trades from Monday. Top Stock Trades for Tomorrow 1: Bristol-Myers Squibb Click to EnlargeShares of Bristol-Myers Squibb (NYSE:BMY) took a spill, falling over 7% on Monday. The fall comes after two pieces of news. With the company looking to wrap up its acquisition of Celgene (NASDAQ:CELG), the duo are apparently willing to divest Celgene's Otezla unit.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 7 Best Acquisitions of 2019 That unit represented about 10% of Celgene's most recent quarter of sales and is a $1-billion-a-year drug. Investors obviously aren't too happy about that. Negative news about BMY's Opdivo isn't helping sentiment either.So what now?The charts were just starting to look good for BMY, with the stock trying to climb north of $50 for the time since March. Instead, investors are now hoping that support in the $44 to $45 area holds up. Top Stock Trades for Tomorrow 2: Celgene Click to EnlargeIt also bring up the question of Celgene. Shareholders are to receive $50 in cash plus 1 share of BMY for each share of CELG that they own. Currently, that puts the deal value at $95 for Celgene stock, not including the cash incentive to shareholders for future drug approvals.However, because the deal is not expected to go through until Q4 2019 or Q1 2020 -- unlike previously expected in in Q3 2019 -- both stocks are still susceptible to big moves.Below the 20-day and 50-day moving averages is not all that great for Celgene stock. However, still north of $92.50 means CELG is okay, technically speaking. Top Stock Trades for Tomorrow 3: Caesars Entertainment Click to EnlargeShares of Caesars Entertainment (NASDAQ:CZR) are surging on Monday, up almost 15% on a $17.3 billion merger agreement with Eldorado Resorts (NASDAQ:ERI), which is down about 15% as a result.With the exception of the size, the deal is somewhat similar to the BMY-CELG one above. Assuming regulatory approval, CZR stock could drift higher. At the time of the news release, it valued CZR stock at $12.75 apiece, more than $1 per share below current levels.That said, CZR's final value will depend on the value of ERI too. I want to see CZR stay north of the 200-day moving average. I also want to see ERI stock stabilize as well. Top Stock Trades for Tomorrow 4: New Relic Click to EnlargeNew Relic (NASDAQ:NEWR) is a new one for the Top Stocks list, but its action warrants some attention.$95 has been pretty solid support, as has the 200-day moving average. With Monday's fall though, both levels gave way. Bears may be tempted to short NEWR on a retest of this area provided it now acts as resistance.With support failing, a drop down to the $77.50 to $80 area is possible. Until it's north of $95 again, bulls may need to wait for a better opportunity. Top Stock Trades for Tomorrow 5: Match Group Click to EnlargeMatch Group (NASDAQ:MTCH) caught a big bounce on Monday, with shares jumping more than 7%. * 7 Top S&P 500 Stocks of 2019 (So Far) The move comes on a test of the 50-day moving average, which has buoyed the name for months now. Over $74 and MTCH stock can breakout out. If it acts as resistance again, look to see if the 50-day holds once more.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long CELG. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Telecom Stocks to Set on Speed Dial * 6 Stocks to Sell in the Back Half of 2019 * 7 Top S&P 500 Stocks of 2019 (So Far) Compare Brokers The post 5 Top Stock Trades for Tuesday: CELG, BMY, CZR appeared first on InvestorPlace.
Wall Street struggled for direction on Monday as gains by technology companies were blunted by losses in the healthcare sector, while investors looked to U.S. President Donald Trump's meeting with his Chinese counterpart Xi Jinping at the G20 summit later this week. The Dow held on to a small advance, while the Nasdaq was slightly lower.
Wall Street's main indexes were flat on Monday, as losses in healthcare stocks offset gains in the technology sector, while investors awaited a high-stakes meeting between U.S. and Chinese leaders at the G20 summit later this week. The benchmark index is up 7.2% so far in June and is on track to recoup its losses from the previous month.
is in the news Monday as they plan the sale of their plaque psoriasis and psoriatic arthritis drug Otezla to win FTC approval for their $74 billion Celgene Corp. In this daily bar chart of BMY, below, we can see that prices sold off sharply in October and made a lower low in early January. The daily On-Balance-Volume (OBV) line shows a mostly bearish trend from October signaling aggressive selling.
(Bloomberg) -- Bristol-Myers Squibb Co. agreed to divest one of Celgene Corp.’s most lucrative drugs in order to close their planned $74 billion merger.Under an agreement with the Federal Trade Commission, Bristol-Myers will sell off the psoriasis pill Otezla to appease antitrust regulators’ concerns, the company said in a statement.Bristol-Myers shares fell as much as 7.6% to $45.57 in New York, the biggest intraday drop since the deal was announced on Jan. 3. Celgene declined as much as 5.2% to $93.74.Otezla is a major product for Celgene, projected to bring in $1.86 billion this year, and was seen as an important driver of future growth as the two companies knit together their businesses. Bristol-Myers has been battling Merck & Co. for dominance in the field of cancer immunotherapy, while Celgene’s blockbuster Revlimid for blood cancers is expected to face lower-priced competitors in coming years.Otezla has as much as a decade of strong sales ahead, according to analysts’ estimates surveyed by Bloomberg. Now, a rival drugmaker will get the rights to the pill, potentially at a discounted price. Johnson & Johnson’s Janssen unit has said it’s interested in pursuing an oral psoriasis treatment through an acquisition or its own pipeline.Bristol-Myers is researching another type of therapy for psoriasis known as a TYK2-inhibitor that would likely compete with Celgene’s blockbuster drug. While the drugs work differently, the overlap raised concerns from regulators, according to the statement. By divesting Otezla, Bristol-Myers is electing to sell a blockbuster in favor of a promising, though still experimental, therapy.“Divesting Otezla a surprise to us and removes one of the newco’s growth drivers,” Vamil Divan, an analyst with Credit Suisse Group AG, said in a note to clients.Taking LongerBristol-Myers also said that the deal will take longer to close than it had expected. Its new target is the end of 2019 or early 2020, pushed back from a previous goal of Sept. 30. The FTC review is ongoing, the company said, and European regulators will review it as well.“Bristol-Myers Squibb is committed to working with regulatory authorities around the world on the proposed combination with Celgene,” the company said in the statement. It plans to use the proceeds to pay off debt.The increased oversight spooked investors in another biotechnology company facing regulatory review. Earlier this month, the FTC requested more information about Spark Therapeutics Inc.’s proposed sale to Roche Holding AG, sending the gene therapy company’s shares falling. Spark’s shares dropped as much as 3.6% to $101.25 on the news of the Otezla divestiture.In a research note, Jefferies analyst Michael Yee said it remains to be seen what the news could mean for the industry.“We continue to be mindful and are carefully watching to get a better handle on if we are in a more aggressive FTC era for biotech,” he wrote in a note to clients.Separately, Bristol-Myers said that its cancer drug Opdivo, its No. 2 product, had failed a clinical trial treating liver cancer patients. The medicine faces multiple competitors that use the same mechanism to help the immune system attack tumors, and Bristol-Myers’ rivals have been attempting to get the drugs approved in as many different types of cancer as possible.(Updates share-price movement in third paragraph.)To contact the reporters on this story: Rebecca Spalding in Boston at firstname.lastname@example.org;Riley Griffin in New York at email@example.comTo contact the editors responsible for this story: Drew Armstrong at firstname.lastname@example.org, Mark Schoifet, Timothy AnnettFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- Bristol-Myers Squibb Co. really wants to get its $74 billion deal for Celgene Inc. done. The pharma giant announced Monday that it is planning to divest Celgene’s blockbuster psoriasis medication Otezla to address concerns by the Federal Trade Commission likely related to potential market concentration. Bristol-Myers has a competing product in late-stage trials and a marketed inflammation drug of its own in Orencia. It had previously hoped to close the deal by Sept. 30. Now it is targeting the end of the year, or early 2020. The FTC’s unexpected objection – analysts didn’t think divestitures would be required – demonstrates the hidden perils of drug megamergers and adds risk to what was already the year’s priciest pharma deal.Regulators seemingly don’t want Bristol-Myers to retain all three assets. If one had to go, it makes some sense that it’s Otezla. Orencia generates more revenue, but Otezla has a longer runway and more growth potential. That could see it achieve a comparatively higher multiple in a sale. As for Bristol-Myers’s pipeline drug, a sale wouldn’t impact current cash flow as the medicine is still in development, but it might not bring much of a return or assuage regulators.Even if selling Otezla is the right call, it’s a tough decision and will hurt. Otezla accounted for 10% of Celgene’s sales last year, and creating an industry-leading inflammation franchise was a big selling point for the deal with Bristol-Myers. The combined company will have significantly less scale in that area now.Bristol-Myers also may have trouble getting the price it wants for a valuable asset through this pressured process. The FTC’s objections to this part of the deal are surprising. Orencia and Otezla work in different ways, and overlap in just one of their several indicated uses. The competitive threat from the pipeline drug is still entirely theoretical. The high regulatory bar that Bristol-Myers has revealed could limit the pool of potential buyers. Many of the big pharma companies that are most likely to be interested in Otezla are already big players in inflammation. Add in the fact that Bristol-Myers is in a weak negotiating position, and you have a recipe for a soft price. Biopharma companies that attempt large deals love to talk up potential synergies and increased muscle. But those transactions are always more complicated than the sales pitch indicates, and the sacrifices required to get them done have a cost. To contact the author of this story: Max Nisen at email@example.comTo contact the editor responsible for this story: Beth Williams at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Max Nisen is a Bloomberg Opinion columnist covering biotech, pharma and health care. He previously wrote about management and corporate strategy for Quartz and Business Insider.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.