Revisiting the Bristol-Myers Squibb (BMY US) Bullish Investment Thesis After the Q3 Earnings Report.

Pharma/ Biotechnology Investments Specialist, Vasuda Capital Management

Dr. Bhavneesh Sharma, MD, MBA

Pharma/ Biotechnology Investments Specialist

Vasuda Capital Management

Equity Bottom-Up

Bristol Myers Squibb Co / Equity Bottom-Up

<ul><li>Bristol-Myers Squibb (NYSE: BMY) common stock is trading close to 52-week lows after the failure of pivotal phase 3 trial of Opdivo (anti-PD1 antibody) as a first-line treatment in advanced non-small cell lung cancer (NSCLC). We explain in this article our hypothesis on different results of Opdivo and Keytruda as first line treatment in advanced NSCLC with PDL1 expression 50% or more.</li><li>A combination of Opdivo and Yervoy (anti-PD1+anti-CTLA4) resulted in 92% objective response rate as a first-line treatment in advanced NSCLC (PDL1 expression 50% or more) in the phase 1b trial, which is much higher than rival Merck's (NYSE: MRK) anti-PD1 antibody Keytruda in the phase 3 trial. </li><li>Opdivo+Yervoy combination showed successful results as first-line treatment in advanced NSCLC (even regardless of PDL1 expression). Our expert consultant oncologist indicated a preference for lung cancer therapies where he does not have to determine PDL1 expression in tumors by invasive lung biopsy. The combination is safer and more efficacious than anti-PDL1 +anti-CTLA4 antibody combination by rival Astra-Zeneca (NYSE: AZN). Results of the pivotal phase 3 trial of Bristol-Myers combination are expected in early 2018.Bristol-Myers Squibb is already leading the checkpoint inhibitor immuno-oncology space in the treatment of melanoma and kidney cancer. The company has established drug manufacturing facilities at Shanghai, China and Aichi, Japan. The company also has Asian footprints at Singapore and Tokyo, Japan.</li><li>We consider this pull-back in the stock price as an excellent opportunity to initiate long positions in this blue-chip company. Shares could rise 40% by early 2018 to our price target of US$74 while investors receive 3% annual dividend.</li></ul>

Bristol-Myers Squibb (NYSE: BMY) common stock is trading close to 52-week lows after the failure of pivotal phase 3 trial of Opdivo (anti-PD1 antibody) as a first-line treatment in advanced non-small cell lung cancer (NSCLC). We explain in this article our hypothesis on different results of Opdivo and Keytruda as first line treatment in advanced NSCLC with PDL1 expression 50% or more.A combination of Opdivo and Yervoy (anti-PD1+anti-CTLA4) resulted in 92% objective response rate as a first-line treatment in advanced NSCLC (PDL1 expression 50% or more) in the phase 1b trial, which is much higher than rival Merck's (NYSE: MRK) anti-PD1 antibody Keytruda in the phase 3 trial. Opdivo+Yervoy combination showed successful results as first-line treatment in advanced NSCLC (even regardless of PDL1 expression). Our expert consultant oncologist indicated a preference for lung cancer therapies where he does not have to determine PDL1 expression in tumors by invasive lung biopsy. The combination is safer and more efficacious than anti-PDL1 +anti-CTLA4 antibody combination by rival Astra-Zeneca (NYSE: AZN). Results of the pivotal phase 3 trial of Bristol-Myers combination are expected in early 2018.Bristol-Myers Squibb is already leading the checkpoint inhibitor immuno-oncology space in the treatment of melanoma and kidney cancer. The company has established drug manufacturing facilities at Shanghai, China and Aichi, Japan. The company also has Asian footprints at Singapore and Tokyo, Japan.We consider this pull-back in the stock price as an excellent opportunity to initiate long positions in this blue-chip company. Shares could rise 40% by early 2018 to our price target of US$74 while investors receive 3% annual dividend.

Could Blue-Chip Bristol-Myers Squibb's (NYSE: BMY) Shares Rise More than 40% by Early 2018?