Right now, everyone seems to be focusing on the race to develop a COVID-19 vaccine.
However, our other health problems … heart disease, cancer, respiratory diseases … haven’t gone away.
The Centers of Disease Control and Prevention estimates that more than 1 million Americans die from those three ailments alone every year.
Fortunately, there are pharmaceutical companies working hard throughout the pandemic to develop new treatments for a variety of health issues.
One of these companies is Bristol-Myers Squibb Co. (NYSE: BMY), headquartered in New York City.
The pharma giant received approval from the Food and Drug Administration (FDA) on May 15 to start selling a drug combination used to treat lung cancer.
And in March, the FDA approved BMY’s treatment for multiple sclerosis, a disease that afflicts nearly 1 million people in the U.S.
This is just the beginning, though. BMY has more than 50 new drugs in development as I write this.
That’s why I asked Brian Christopher to share his thoughts on what to expect going forward for this innovative company.
It’s Time to Profit From BMY’s V-Shaped Recovery
By Brian Christopher
Bristol-Myers Squibb acquired cancer-focused Celgene in November of last year for $92 billion. It was a transformational acquisition.
BMY did the deal to create an “innovative biopharma leader … that will drive sustainable growth.”
After closing, shares surged nearly 19% to a late-January high:
BMY Is Almost Back to Its January High
Then it got caught up in COVID-19.
Since BMY bottomed in late March, though, its shares saw a “V-shaped” recovery within $6 of its high this year.
Bristol’s second quarter will be weaker than normal. And management cut 2020 sales guidance by 1.2% in its most recent earnings call.
But going forward, it has a solid pipeline of products.
Overall, analysts expect sales will grow by more than $15 billion — or 60% — in the first full year of the merger with Celgene.
In our previous two purchases of BMY we made an average return of 32%, including dividends.
This year isn’t normal for the company. But it’s a $140 billion powerhouse now.
Shares should rise to $70 over the next year. That would give us a 15%-plus return with BMY’s 3% dividend.
If you’re interested in other opportunities to profit from the biotech boom, I highly suggest you check out Jeff Yastine’s presentation on the stock that’s revolutionizing health care as we know it.
And even better — it’s drastically undervalued, trading beneath $5 as I write this.
Assistant Managing Editor, Banyan Hill Publishing