This Wasn't A Great ESMO For Bristol-Myers Squibb, But 2017 Could Be A Much Better Year

This year’s European Society for Medical Oncology conference was one that Bristol-Myers Squibb Co BMY shareholders would like to forget. The primary focus for Bristol-Myers was the company’s failed CM-26 trial.

Bristol-Myers shares are down 9.4 percent in early Monday trading following the disappointing Opdivo data. However, Goldman Sachs analyst Jami Rubin believes there are still plenty of reasons for Bristol-Myers investors to be bullish.

“On the bright side, we believe the updated CM-012 was very promising with strengthening ORR, PFS, and OS since the last update,” Rubin explains.

Related Link: Bristol-Myers Opdivo Vs. Merck's Keytruda In Front Line Lung Treatment

He adds that Bristol-Myers’ indication that the company should have access to an accelerated path to market for its combo was a pleasant surprise.

Goldman projects that Bristol-Mysers could file for the combo as soon as mid-2017 based on the results from follow-up studies CM-012 and CM -568.

Bristol-Myers’s stock is already down more than $20 as the market has priced in its 1L monotherapy disappointment. However, Rubin believes that Bristol-Myers’ CM-012 data is more compelling than Merck’s KN-021 chemotherapy combo.

In addition, Bristol-Myers’ stock has a number of potential market-moving catalysts ahead, and Rubin believes it currently offers an attractive valuation.

Goldman maintains a Buy rating on Bristol-Myers and has a $75 price target for the stock.