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Bristol-Myers Squibb Is Focused on Creating Shareholder Value in 2017

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Feb. 28 2017, Updated 9:07 a.m. ET

Shareholder value

To create shareholder value, Bristol-Myers Squibb (BMY) is mainly focused on four key areas: solid commercial execution for the company’s entire product portfolio, continued development of its first-line lung cancer program, focus on other late-stage immuno-oncology (or IO) research programs, and acceleration of its overall research and development (or R&D) pipeline.

If Bristol-Myers Squibb’s manages to successfully implement this four-pronged strategy, its share price could see a boost, as could shares of the Vanguard S&P 500 ETF (VOO). Bristol-Myers Squibb makes up about 0.46% of VOO’s total portfolio holdings.

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Commercial execution

Bristol-Myers Squibb has focused on creating a strong commercial infrastructure for its immuno-oncology (or IO) franchise as well as for other non-oncology brands such as Eliquis, Orencia, and Sprycel. The company has prioritized commercial execution excellence not only in the US market, but also for the IO business in international markets.

Bristol-Myers Squibb is focused on defending its second-line non-small cell lung cancer (or NSCLC) market share in the US market, which was gradually eroded by the entry of Roche Holdings’ (RHHBY) Tecentriq in 4Q16.

First-line lung cancer program

Following the failure of the CheckMate 026 trial in demonstrating the efficacy of Opdivo as a first-line monotherapy for NSCLC patients, Bristol-Myers Squibb has focused on developing IO combination therapies for this indication. The company is currently evaluating IO/IO combination regimens, an IO/chemotherapy regimen, and a short-term chemotherapy added to an IO/IO regimen for first-line lung cancer indications.

Peers Pfizer (PFE) and Merck & Co. (MRK) are also involved in exploring IO-based combination regimens for various oncology indications.

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Late-stage IO programs

Bristol-Myers Squibb also expects multiple data readouts in 2017 and 2018 compared to other late-stage IO research programs in indications such as first-line renal cell carcinoma (or RCC), hepatocellular Carcinoma (or HCC), and first- and second-line small cell lung cancer (or SCLC).

Research and development pipeline

Bristol-Myers Squibb is also advancing other research programs in the oncology space involving novel technologies such as lymphocyte-activation gene 3 (or LAG-3), glucocorticoid-induced TNFR-related protein (or GITR), colony stimulating factor 1 receptors (or CSF1R), and IDO inhibitors. Beyond oncology, the company is also working on multiple research programs in the fibrosis space.

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