Merck Shares Higher Following Bristol-Myers' Phase 3 Disappointment
Shares of Bristol-Myers Squibb (NYSE: BMY) fall 7.15% following Q4 results and management's announcement that the company will continue Phase 1 studies of nivolimab and Yervoy in lung cancer before advancing to Phase 3.
BMO Capital Markets analyst Alex Arfaei's noted that many investors expected a rapid advancement to stage 3 and this news will disappoint. Arfaei added that Bristol-Myer's management comments may be interpreted as a sign of caution.
The analyst reported that this news is “incrementally positive” for Merck & Co. (NYSE: MRK) who is developing a competing therapy in lung cancer, MK- 3475.
Arfaei rates Bristol-Myers as Market Perform with a $56.00 price target, and Merck as Outperform with a $56.00 price target.
Bristol-Myers is currently down 4.75% at $51.39 and shares of Merck are up 0.87% at $52.05.
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