Bristol-Myers Hit With A Trio Of Analyst Price Target Cuts

Bristol-Myers Squibb Co BMY saw its shares crater from near $75 last week to nearly $60 per share after the company reported a major setback for its cancer-treating drug, Opdivo.

Bristol-Myers said Opdivo failed to meet a primary endpoint in the treatment of lung cancer during the CheckMate-026 Study. The study was a Phase 3, open-label randomized study of the drug involving 541 patients. The primary endpoint for the study was for a progression-free survival.

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The company's drug has been on the market since March 2015, but Friday's announcement proved to be disappointing for the company.

Bristol-Myers' stock was halted prior to the news release on Friday and when trading resumed shares plunged nearly 20 percent. The mass selling activity carried over into Monday's session as the stock lost nearly 5 percent to close the day at $60.30.

Following the announcement, several of Wall Street's top pharmaceutical analysts felt it necessary to revise their outlook on the stock.

The average price target set by analysts at Citigroup, Deutsche Bank and Jefferies is $68.67. While the average price target assumes an upside of more than 13 percent, prior to Friday's announcement the average price target among the three research firms was $76.