Can Carl Icahn Save Bristol Myers Squibb?

Bristol-Myers Squibb Company BMY experienced slight growth after Carl Icahn, billionaire activist-investor, reportedly wants to take stake in the company.

Bristol-Myers, a global leader in biopharmaceutical, hasn't been able to convince shareholders that its product can compete against rivals like Merck & Co MRK . A product that the company pioneered is cancer immunotherapy, which aims to fight the diseases using the body's immune system.

The company took a hit in January when they announced that their lung-cancer treatment wouldn't get approval as fast as hoped. Investors feared the delay would put Bristol-Myers behind its competitors.

On Tuesday, the company announced that it would add three directors to its board, making it a total of 14 seats, and buy back $2 billion in stock in a pact with another activist, Jana Partners LLC. Current Chairman Lamberto Andreotti will also retire, as it was announced back in December.

The Wall Street Journal reported that Icahn, who has a successful history in pushing for deals among pharmaceutical companies, owns a large stake and believe the company has a good potential to become an "attractive takeover."

Bristol-Myers is a Zacks Rank #3 (Hold). The company's stock rose slightly right after Icahn's interest was reported at 4 p.m. in New York.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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