BMY

Bristol-Myers Squibb Co

Healthcare, Event Driven/Special Sit


Presented:02/22/2017
Price:$55.35
Cap:$92.99B
Current Price:$52.76
Cap:$106.97B

Presented

Date02/22/2017
Price$55.35
Market Cap$92.99B
Ent Value$98.54B
P/E Ratio20.89x
Book Value$9.34
Div Yield0.03%
Shares O/S1,680.00M
Ave Daily Vol12,501,108
Short IntN/A

Current

Price$52.76
Market Cap$106.97B
Bristol-Myers Squibb Co. engages in the discovery, development, licensing, manufacturing, marketing, distribution, and sale of biopharmaceutical products. Its pharmaceutical products include chemically-synthesized drugs or small molecules and an increasing portion of products produced from biological processes called biologics. Bristol-Myers biopharmaceutical research and development efforts in the affective (psychiatric) disorders, Alzheimer's/dementia, cardiovascular, diabetes, hepatitis, HIV/Acquired Immunodeficiency Syndrome (AIDS), oncology, immunologic disorders and fibrotic disease areas. The company was founded in August 1933 and is headquartered in New York, NY.

Publicly traded companies mentioned herein: Bristol-Myers Squibb Co (BMY), Gilead Sciences Inc (GILD), Novartis AG (NVS), Pfizer Inc (PFE), Roche Holding Ltd (RHHBY), Sanofi SA (SNY)

Highlights

The presenter is long shares of Bristol-Myers (BMY) and believes the company is likely to be acquired within the next 12-18 months. At ~$55 per share - which is roughly in line with his cost basis - the risk/reward is favorable. In addition to owning the stock, he is long call options with varying strikes and expiration dates as well, and said, “Vol is still cheap in this space”. With 4+ suitors being speculated in the press/ on the Street, and BMY’s valuation still depressed following its missteps with Opdivo in first-line non-small cell lung cancer (NSCLC), he can envision a scenario where an offer in the $80-100 range (14-18 times $5.50-6.00 of EPS in 2019) materializes within the investment horizon.

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Idea Discussion

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