Morgan Stanley analyst Terence Flynn maintained a Sell rating on Bristol-Myers Squibb today and set a price target of $34.00.
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Terence Flynn’s rating is based on several factors that impact Bristol-Myers Squibb’s stock outlook. The primary concern is the company’s reliance on Cobenfy, a drug acquired through the purchase of Karuna, to counterbalance the anticipated loss of exclusivity for its older products. While Cobenfy has been approved for schizophrenia, its success in other indications, such as Alzheimer’s Disease Psychosis (ADP), remains uncertain, with the first Phase 3 trial results expected in late Q3 or early Q4.
Flynn’s cautious stance is further influenced by the potential risks associated with the expansion of Cobenfy’s label across multiple indications, including Alzheimer’s agitation, cognition impairment, and bipolar depression I. The outcome of the ADEPT-2 trial, along with future trials like ADEPT-1 and ADEPT-4, will be crucial in determining the drug’s broader market potential. These uncertainties, coupled with the pressure to replace revenue from legacy products, contribute to the Sell rating for Bristol-Myers Squibb.