Three developments make Pfizer buying Bristol-Myers more likely, says Citi - InvestingChannel

Three developments make Pfizer buying Bristol-Myers more likely, says Citi

Citi analyst Andrew Baum raised his price target for Bristol-Myers Squibb (BMY) to $78 from $72 saying three developments over the last week have increased the probability of a Pfizer (PFE) takeover to near 65% from 50%. Bristol closed yesterday up $3.64, or 5.6%, to $68.98. First, Bristol’s revenue potential in non-small cell lung cancer is partly de-risked through Checkmate-227 tumor mutation burden data, Baum tells investors in a research note. Second, the NKTR-214 development collaboration and equity stake in Nektar Therapeutics (NKTR) could materially increase Bristol’s Opdivo market share, the analyst adds. And third, he believes Pfizer’s immuno-oncology efforts “are looking increasingly suspect.” Bristol-Myers is likely Pfizer’s last chance to have a meaningful position in the $50B-plus per annum immuno-oncology market, Baum contends. He reiterates a Buy rating on Bristol shares.