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Bristol-Myers (BMY) Up on Dividend Hike, Share Repurchase
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Shares of Bristol-Myers Squibb Company (BMY - Free Report) gained after the company announced an increase in the quarterly dividend.
The board of directors has declared a quarterly dividend of 54 cents per share, up 10.2% over last year’s rate of 49 cents per share.
The dividend will be paid out on Feb 1, 2022, to stockholders of record at the close of business on Jan 7, 2022.
The annual dividend rate for fiscal 2022 is $2.16 per share on this rate.
Concurrently, the board also authorized the repurchase of an additional $15 billion of common stock. As a result, the company’s total outstanding share repurchase authorization is approximately $15.2 billion.
The increase in dividend encouraged investors.
Shares of BMY have lost 1.5% year to date compared with the industry's decline of 26.3%.
Image Source: Zacks Investment Research
The company has performed well of late. Bristol-Myers’ multiple myeloma (MM) drug Revlimid (added with erstwhile Celgene’s acquisition) continues to be the top revenue generator with its solid performance primarily driven by demand for triple-based therapies and increasing treatment duration. Blood thinner drug Eliquis’ stellar performance continues on sustained demand.
However, Opdivo faced a slowdown early in the year, but demand has revived somewhat on label expansions. The recent approval of new drugs adds a stream of revenues, which should propel growth in the coming quarters.
Reblozyl, in collaboration with erstwhile Acceleron, which is now part of Merck (MRK - Free Report) , has also performed well. The FDA approval of Zeposia (ozanimod) 0.92 mg for the treatment of adults with moderately-to-severely active ulcerative colitis (UC), a chronic inflammatory bowel disease (IBD), has also added an incremental stream of revenues for the company. Earlier in the year, Bristol Myers also obtained FDA approval for Breyanzi (lisocabtagene maraleucel; liso-cel), a CD19-directed CAR T cell therapy for the treatment of adult patients with relapsed or refractory (R/R) large B-cell lymphoma (LBCL).
The company also won FDA approval for Abecma, a first-in-class B-cell maturation antigen (BCMA)-directed CAR T cell immunotherapy.
However, recent pipeline setbacks are a bit of concern. Last month, the company announced that the mid-stage study investigating pipeline candidate deucravacitinib for treating moderate to severe UC has failed. The FDA has also extended the review of the new drug application (NDA) for cardiovascular candidate mavacamten.
Competition is stiff for Opdivo from the likes of Merck’s Keytruda. The drug, approved for various oncology indications, is the key growth driver for MRK.
Loss per share estimates for Sarepta have narrowed from $6.95 to $4.99 for 2021 and from $4.78 to $3.61 for 2022 in the past 60 days. Sarepta delivered an earnings surprise of 11.06%, on average, in the last four quarters.
Loss per share estimates for Viking Therapeutics have narrowed to 74 cents from 81 cents for 2021 and to $1.08 from $1.18 for 2022 in the past 30 days. Viking delivered an earnings surprise of 2.06%, on average, in the last four quarters.
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Bristol-Myers (BMY) Up on Dividend Hike, Share Repurchase
Shares of Bristol-Myers Squibb Company (BMY - Free Report) gained after the company announced an increase in the quarterly dividend.
The board of directors has declared a quarterly dividend of 54 cents per share, up 10.2% over last year’s rate of 49 cents per share.
The dividend will be paid out on Feb 1, 2022, to stockholders of record at the close of business on Jan 7, 2022.
The annual dividend rate for fiscal 2022 is $2.16 per share on this rate.
Concurrently, the board also authorized the repurchase of an additional $15 billion of common stock. As a result, the company’s total outstanding share repurchase authorization is approximately $15.2 billion.
The increase in dividend encouraged investors.
Shares of BMY have lost 1.5% year to date compared with the industry's decline of 26.3%.
The company has performed well of late. Bristol-Myers’ multiple myeloma (MM) drug Revlimid (added with erstwhile Celgene’s acquisition) continues to be the top revenue generator with its solid performance primarily driven by demand for triple-based therapies and increasing treatment duration. Blood thinner drug Eliquis’ stellar performance continues on sustained demand.
However, Opdivo faced a slowdown early in the year, but demand has revived somewhat on label expansions. The recent approval of new drugs adds a stream of revenues, which should propel growth in the coming quarters.
Reblozyl, in collaboration with erstwhile Acceleron, which is now part of Merck (MRK - Free Report) , has also performed well. The FDA approval of Zeposia (ozanimod) 0.92 mg for the treatment of adults with moderately-to-severely active ulcerative colitis (UC), a chronic inflammatory bowel disease (IBD), has also added an incremental stream of revenues for the company. Earlier in the year, Bristol Myers also obtained FDA approval for Breyanzi (lisocabtagene maraleucel; liso-cel), a CD19-directed CAR T cell therapy for the treatment of adult patients with relapsed or refractory (R/R) large B-cell lymphoma (LBCL).
The company also won FDA approval for Abecma, a first-in-class B-cell maturation antigen (BCMA)-directed CAR T cell immunotherapy.
However, recent pipeline setbacks are a bit of concern. Last month, the company announced that the mid-stage study investigating pipeline candidate deucravacitinib for treating moderate to severe UC has failed. The FDA has also extended the review of the new drug application (NDA) for cardiovascular candidate mavacamten.
Competition is stiff for Opdivo from the likes of Merck’s Keytruda. The drug, approved for various oncology indications, is the key growth driver for MRK.
Bristol Myers currently carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the biotech sector are Sarepta Therapeutics (SRPT - Free Report) and Viking Therapeutics (VKTX - Free Report) , both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Loss per share estimates for Sarepta have narrowed from $6.95 to $4.99 for 2021 and from $4.78 to $3.61 for 2022 in the past 60 days. Sarepta delivered an earnings surprise of 11.06%, on average, in the last four quarters.
Loss per share estimates for Viking Therapeutics have narrowed to 74 cents from 81 cents for 2021 and to $1.08 from $1.18 for 2022 in the past 30 days. Viking delivered an earnings surprise of 2.06%, on average, in the last four quarters.