Bristol Myers Squibb (BMY)

[chmcnfunds]

Speculation prior to PFE earnings:
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M&A SPECULATION: This past February, whispers surrounding rival drug maker Bristol-Myers (BMY) being a takeover target began to circulate. Pfizer along with Roche (RHHBY), Novartis (NVS) were mentioned as possible suitors. At the time, Deutsche Bank analyst Gregg Gilbert said he would be surprised to see Pfizer make a move on Bristol-Myers Squibb at this stage. Such an acquisition "would represent a very large and concentrated opportunity/risk on immuno-oncology, an area fraught with near-term uncertainty," Gilbert told investors in a research note from February. In late March, Credit Suisse analyst Vamil Divan revisited the hypothetical sale of Bristol-Myers Squibb, arguing that an acquisition by Pfizer could be net positive for the company. The analyst, who reminded investors that he called a Bristol takeout "unlikely" in a March 5 note, says the concept remains "one of the most common topics of discussion in our investor meetings" in light of the drugmaker's ongoing challenges and activist targeting. Divan said his colleagues at Credit Suisse's "HOLT" proprietary valuation group have now analyzed a potential Pfizer-Bristol deal and concluded that it would have a "positive impact" on the company's return on capital profile.
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BMY