Bristol-Myers Squibb (BMY) delivered a strong Q2 but is experiencing slight delays to the launches of milvexian AFib, which had somewhat been expected, and Cobenfy, which was a surprise, RBC Capital Markets said in a note emailed Friday.
The firm believes catalyst delays risk keeping the stock range-bound
for longer, according to the note.
Patients taking Cobenfy who fail to reach the effective 125mg dose due to gastrointestinal tolerability issues remain a modest headwind, while the sales force is focused on encouraging physicians to properly titrate patients, though no inflection is expected in Q3, the note added.
The company's management attributed Revlimid's strength due to generics taking share from highly rebated channels, while Eliquis outlook increase reflects both demand and market growth, the firm noted.
RBC now forecasts full year revenue of $50 billion and earnings per share of $6.97, up from $46.9 billion and $6.29 earlier, respectively.
RBC kept a sector perform rating on Bristol-Myers Squibb and raised its price target to $64 from $60.
Price: $64.89, Change: $+0.03, Percent Change: +0.05%