Bristol Myers Squibb (BMY)

[chmcnfunds]

JPMorgan Has 3 Top Pick Large Cap Pharmaceuticals to Buy for the Rest of 2017

By Lee Jackson May 5, 2017 8:20 am EDT

One segment in the markets that has been dogged with issues for almost two years is the big pharmaceuticals, as numerous factors have kept the lid on share prices and, in some cases, kept the headlines right in investors’ faces. The biggest issue is the seemingly constant and somewhat shrill rhetoric from attention-seeking politicians over drug prices. While that may play well with constituents, it can be difficult for companies trying to deliver for shareholders.

In a new research report, the outstanding team at JPMorgan make the case that the best place for investors to look when considering large cap drug stocks is companies that have strong new product cycles already in motion. They also focus on stocks with attractive top-line and margin expansion potential. Three make the grade, and are all rated Overweight.

Bristol-Myers Squibb

This top company remains a favorite at Jefferies and ranks as the fourth top global pick. Bristol-Myers Squibb Co. (NYSE: BMY) is a global pharmaceutical company focused on discovering, developing, licensing and marketing chemically synthesized drugs or small molecules and biologics in various therapeutic areas, including virology comprising human immunodeficiency virus infection (HIV), oncology, neuroscience, immunoscience and cardiovascular.

The company recently announced that Biogen will pay $300 million upfront to Bristol-Myers to license a palsy drug with a $2 billion market opportunity and the potential to use that to treat Alzheimer’s. The company will pay a total of $410 million in milestone payments and a tiered double-digit royalty to license a drug known only as BMS-986168. The drug just completed Phase 1 testing in progressive supranuclear palsy.

The company reported first-quarter profit and revenue that exceeded Wall Street expectations. The results included a 60% increase in global revenues for cancer drug Opdivo, compared with the year-earlier period,

Shareholders receive a 2.83% dividend. JPMorgan has a $66 price objective, and the consensus target price is $56.33. The shares closed on Thursday at $55.19.

(other 2 stocks omitted)
_______________________________________________________
http://247wallst.com/healthcare-business/2017/05/05/jpmorgan-has-3-top-pick-large-cap-pharmaceuticals-to-buy-for-the-rest-of-2017/

BMY