Why Bristol Myers Squibb Stock Bounced Higher Today

What happened

Shares of Bristol Myers Squibb (NYSE: BMY) were bouncing 3.4% higher as of 3:31 p.m. ET on Thursday after slipping a little earlier this week. The big drugmaker didnt reportany news that served as a catalyst. Instead, today's move appeared to be the result of investors seeking relatively safe stocks as the Nasdaq Composite index and Russell 2000 small-cap index fell.

So what

Bristol Myers Squibb has seemed to be sort of a safe haven for investors throughout much of 2022. The pharma stock is up 15% year to date while the major market indexes have plunged.

The company hasn't delivered all that impressive top-line results, though. BMS' revenue rose by only 2% year over year in the second quarter. However, its bottom line looked better with Q2 adjusted earnings per share jumping 18%.

Perhaps most importantly, BMS has scored several key regulatory wins in recent weeks. The U.S. Food and Drug Administration approved Sotyktu (deucravacitinib) as a treatment for plaque psoriasis earlier this month. Last week, Opdualag (a combination of Opdivo and relatlimab) picked up European approval as a first-line treatment of advanced melanoma.

Now what

BMS is feeling the pain of losing exclusivity for a couple of blockbuster products, Revlimid and Abraxane. At the same time, however, the company continues to enjoy solid growth for several other top-selling drugs, including blood thinner Eliquis and cancer immunotherapy Opdivo.

Probably the most important thing to watch with BMS, though, is how several of its newer drugs gain momentum. In particular, cancer drugs Abecma, Breyanzi, and Opdualag have significant market potential.

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Keith Speights has positions in Bristol Myers Squibb. The Motley Fool has positions in and recommends Bristol Myers Squibb. The Motley Fool has a disclosure policy.

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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