Bristol-Myers Analyst Says 'Big 7' Pipeline Assets Hold $15B In Peak Sales Potential

Biopharma companies are among the most resilient among sectors during the coronavirus pandemic, and one large-cap biopharma has a slew of products in its pipeline that have blockbuster potential, according to BofA Securities. 

Brace For Bristol-Myers' ‘Big 7'

Bristol-Myers Squibb Co's BMY new product cycle consists of seven products across various higher-profile markets like hematology/oncology and immunology and inflammation, or I&I, analyst Geoff Meacham said in a recent note.

Following the Celgene deal, Bristol-Myers has one of the best portfolios across the biopharma industry, the analyst said.

BofA is cognizant of the loss of exclusivity related to Bristol-Myers' blood cancer drug Revlimid, which is expected to go off patent in 2022/2023. Yet investors aren't fully appreciating the upside potential from the portfolio, Meacham said. 

"We think the 'Big 7' new product cycle could exceed Revlimid's $12B franchise, and collectively we see potential for >$15B in peak sales."  

Most of the company's assets are already derisked and have an opportunity for a meaningful inflection point heading into near-term commercial launches, the analyst said. 

BofA highlighted the following seven pipeline assets: 

Inberic

• Generic name: fedratinib
• Drug Type: selective oral JAK2 inhibitor
• Status: Approved in 2019; initial launch underway
• Indication(s): treatment option for myelofibrosis patients who relapsed or are intolerant to Incyte Corporation's INCY Jakafi
• BofA's Peak Potential Estimate: About $750 million

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Rebloyzl

• Generic name: luspatercept
• Drug Type: erythroid maturation agent
• Status: initially approved in November 2019
• Indication(s): treatment of anemia in adults with beta thalassemia and also anemia in adults with lower risk myelodysplastic syndrome
• BofA's Peak Potential Estimate: over $2 billion in both indications

Zeposia

• Generic name: ozanimod
• Drug Type: oral S1P-r modulator
• Status: approved in March 2020 for multiple sclerosis; launch scheduled for June 1
• Indication(s): Apart from multiple sclerosis, it is being evaluated in late-stage studies for ulcerative colitis
• BofA's Peak Potential Estimate: $3.5 billion for both indications

JCAR017

• Generic name: liso-cel
• Drug Type: lead chimeric antigen receptor T-cell product candidate
• Status: in review, with a PDUFA date of mid-November
• Indication(s): diffuse large B-cell lymphoma
• BofA's Peak Potential Estimate: $2.5 billion for both indications

bb2121

• Generic name: ide-cel
• Drug Type: BCMA-targeted CAR-T therapy developed along with bluebird bio Inc BLUE Status: received a refuse-to-file letter from the FDA; refiling expected by July 2020 and approval likely in the first half of 2021 
• Indication(s): relapsed/refractory multiple myeloma
• BofA's Peak Potential Estimate: over $2.5 billion

CC-486

• Generic name: CC-486
• Drug Type: oral hypomethylating agent/oral formulation of Vidaza
• Status: PDUFA date of early September
• Indication(s): first-line acute myeloid leukemia
• BofA's Peak Potential Estimate: $1.5 billion

TYKT

• Generic name: BMS-'165
• Drug Type: oral TYK2 or tyrosine kinase 2 inhibitor
• Status: registrational data expected by year-end and potential filing by the first half of 2021 Indication(s): evaluated in various I&I indications, with a lead phase 3 program in psoriasis being the major value driver
• BofA's Peak Potential Estimate: $2.5 billion

Bristol-Myers Rating & Price Target

BofA rates Bristol-Myers a Buy and $80 price target, suggesting roughly 30% upside from current levels.

BMY Price Action

At last check, Bristol-Myers shares were slipping by 0.58% to $59.98. 

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