What Happened?
Shares of biopharmaceutical company Bristol Myers Squibb (NYSE: BMY) jumped 5.5% in the afternoon session after the U.S. Food and Drug Administration (FDA) granted Fast Track Designation to its experimental antibody, BMS-986446, for the treatment of early Alzheimer's disease. This special status was intended to help speed up the development and review of drugs that treat serious conditions where there is an unmet medical need. The drug candidate, which was in a mid-stage trial, aimed to slow or delay the progression of Alzheimer's. Adding to the positive news, Bristol Myers Squibb also announced it had joined a consortium with other pharmaceutical companies, including Takeda and Astex, to use artificial intelligence to improve the drug discovery process.
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What Is The Market Telling Us
Bristol-Myers Squibb’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 2 months ago when the stock dropped 4.2% on the news that the company lowered its full-year earnings forecast, overshadowing second-quarter results that beat revenue expectations. The drugmaker trimmed its adjusted earnings per share guidance for 2025, attributing the cut to a $0.57 per share charge from a partnership with BioNTech. This charge also hit second-quarter net income, which fell compared to the prior year. Beyond the one-time charge, the company's results revealed underlying weakness, as sales from its older drugs declined 14% due to generic competition. Specifically, revenue from the cancer drug Revlimid plunged 38% year-over-year. Even though Bristol-Myers raised its annual sales forecast, the reduced profit outlook appeared to sour investor sentiment.
Bristol-Myers Squibb is down 16.1% since the beginning of the year, and at $47.65 per share, it is trading 24.5% below its 52-week high of $63.11 from March 2025. Investors who bought $1,000 worth of Bristol-Myers Squibb’s shares 5 years ago would now be looking at an investment worth $796.47.
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