Sell Rating for Bristol-Myers Squibb Due to Camzyos Trial Failure and Revenue Pressures

Analyst Terence Flynn of Morgan Stanley reiterated a Sell rating on Bristol-Myers Squibb (BMY – Research Report), retaining the price target of $36.00.

Terence Flynn has given his Sell rating due to a combination of factors impacting Bristol-Myers Squibb’s future prospects. One of the primary reasons is the recent failure of the Phase 3 trial for Camzyos in treating non-obstructive hypertrophic cardiomyopathy, which did not achieve its primary endpoints. This outcome eliminates a potential expansion opportunity for Camzyos, which was expected to cater to a significant portion of the eligible patient population, thus impacting the company’s growth prospects.
Furthermore, Flynn anticipates that Bristol-Myers Squibb will encounter significant revenue and margin pressures in the latter half of the decade. Although Camzyos is already approved for obstructive hypertrophic cardiomyopathy, the missed opportunity in the non-obstructive segment is seen as a setback. Additionally, the company’s future sales projections for Camzyos are below consensus estimates, further contributing to the cautious outlook on the stock.

Based on the recent corporate insider activity of 36 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of BMY in relation to earlier this year.