We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will BMY's Oncology Collaborations Drive Its Next Growth Phase?
Read MoreHide Full Article
Key Takeaways
BMY partnered with Janux to develop a tumor-activated therapy, with up to $850M in milestones plus royalties.
Bristol Myers Squibb will lead clinical development after IND, while Janux stays involved through phase I.
BMY reported encouraging phase II data for pumitamig with chemo in triple-negative breast cancer patients.
Bristol Myers Squibb (BMY - Free Report) recently collaborated with clinical-stage biopharma company Janux Therapeutics to jointly develop a novel, tumor-activated therapeutic targeting a validated solid tumor antigen expressed across multiple cancer types.
Per the terms, Janux is eligible to receive up to $50 million in upfront and near-term milestone payments, with the potential for additional development, regulatory, and commercial milestones totaling approximately $800 million. Janux will also earn tiered royalties on global product sales, providing meaningful long-term upside if the program succeeds commercially.
While Janux will lead preclinical development through IND submission, BMY will assume responsibility thereafter for clinical development and global commercialization. Janux will remain actively involved through the completion of the first phase I study.
Earlier this month, BMY announced a strategic collaboration with Microsoft to accelerate the early detection of lung cancer through the use of artificial intelligence-powered radiology solutions.
In 2025, BMY collaborated with BioNTech (BNTX - Free Report) for the global co-development and co-commercialization of BioNTech’s investigational bispecific antibody pumitamig (BNT327) across numerous solid tumor types.
Last month, BMY and BioNTech announced the first interim results from a global randomized phase II study evaluating pumitamig in combination with chemotherapy for patients with locally advanced or metastatic triple-negative breast cancer, regardless of PD-L1 expression.
The interim analysis demonstrated encouraging antitumor activity and a manageable safety profile for pumitamig plus chemotherapy in both first- and second-line treatment settings.
A phase III study, ROSETTA-BREAST-01 (NCT07173751), is currently evaluating pumitamig in combination with chemotherapy versus placebo plus chemotherapy in patients with previously untreated locally advanced or metastatic triple-negative breast cancer who are ineligible for PD-(L)1 therapy due to PD-L1–negative disease. In addition, pumitamig is being evaluated in more than 20 clinical studies across over 10 solid tumor indications, both as monotherapy and in combination with chemotherapy or other novel therapeutic approaches.
The successful development of any of these pipeline assets will be a significant boost for BMY as it seeks to expand its pipeline/portfolio, while its legacy portfolio continues to be adversely impacted by the continued generic impact on Revlimid, Pomalyst, Sprycel and Abraxane.
BMY’s Competition in Key Targeted Markets
Oncology is a key therapeutic area of focus for Bristol Myers and the company competes with big pharma giants Merck (MRK - Free Report) and Pfizer (PFE - Free Report) in this space.
The immuno-oncology space is dominated by pharma giant MRK’s blockbuster drug Keytruda (pembrolizumab).
Keytruda is approved for several types of cancer and alone accounts for around 50% of MRK’s pharmaceutical sales. Merck is currently working on different strategies to drive long-term growth of Keytruda.
Developing bispecific antibodies that target two proteins, namely PD-1 and VEGF, has lately been one of the lucrative areas in cancer treatment. In 2024, Merck received an exclusive global license to develop, manufacture and commercialize LM-299, a novel investigational PD-1/VEGF bispecific antibody from LaNova. Merck’s oncology portfolio boasts a blockbuster PD-L1 inhibitor, Keytruda, and the company is looking to build a diversified oncology pipeline spanning differentiated mechanisms and multiple modalities.
Pfizer (PFE - Free Report) is one of the largest and most successful drugmakers in the field of oncology. It has an innovative oncology product portfolio of antibody-drug conjugates (ADCs), small molecules, bispecifics and other immunotherapies that treat a wide range of cancers, including certain types of breast cancer, genitourinary cancer and hematologic malignancies, as well as certain types of melanoma, gastrointestinal, gynecological and lung cancer. Pfizer also has oncology biosimilars in its portfolio.
PFE also inked a licensing agreement with 3SBio for the development, manufacturing and commercialization of SSGJ-707, a bispecific antibody targeting PD-1 and VEGF, outside China.
BMY’s Price Performance, Valuation & Estimates
Shares of Bristol Myers have gained 25.4% over the past six months compared with the industry’s growth of 22.8%.
Image Source: Zacks Investment Research
From a valuation standpoint, BMY is trading at a discount to the large-cap pharma industry. Going by the price/earnings ratio, shares currently trade at 9.02x forward earnings, higher than its mean of 8.41x but lower than the large-cap pharma industry’s 18.18x.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2025 EPS has moved south to $6.33 from $6.51 in the past 60 days, while that for 2026 has moved north.
Image: Shutterstock
Will BMY's Oncology Collaborations Drive Its Next Growth Phase?
Key Takeaways
Bristol Myers Squibb (BMY - Free Report) recently collaborated with clinical-stage biopharma company Janux Therapeutics to jointly develop a novel, tumor-activated therapeutic targeting a validated solid tumor antigen expressed across multiple cancer types.
Per the terms, Janux is eligible to receive up to $50 million in upfront and near-term milestone payments, with the potential for additional development, regulatory, and commercial milestones totaling approximately $800 million. Janux will also earn tiered royalties on global product sales, providing meaningful long-term upside if the program succeeds commercially.
While Janux will lead preclinical development through IND submission, BMY will assume responsibility thereafter for clinical development and global commercialization. Janux will remain actively involved through the completion of the first phase I study.
Earlier this month, BMY announced a strategic collaboration with Microsoft to accelerate the early detection of lung cancer through the use of artificial intelligence-powered radiology solutions.
In 2025, BMY collaborated with BioNTech (BNTX - Free Report) for the global co-development and co-commercialization of BioNTech’s investigational bispecific antibody pumitamig (BNT327) across numerous solid tumor types.
Last month, BMY and BioNTech announced the first interim results from a global randomized phase II study evaluating pumitamig in combination with chemotherapy for patients with locally advanced or metastatic triple-negative breast cancer, regardless of PD-L1 expression.
The interim analysis demonstrated encouraging antitumor activity and a manageable safety profile for pumitamig plus chemotherapy in both first- and second-line treatment settings.
A phase III study, ROSETTA-BREAST-01 (NCT07173751), is currently evaluating pumitamig in combination with chemotherapy versus placebo plus chemotherapy in patients with previously untreated locally advanced or metastatic triple-negative breast cancer who are ineligible for PD-(L)1 therapy due to PD-L1–negative disease. In addition, pumitamig is being evaluated in more than 20 clinical studies across over 10 solid tumor indications, both as monotherapy and in combination with chemotherapy or other novel therapeutic approaches.
The successful development of any of these pipeline assets will be a significant boost for BMY as it seeks to expand its pipeline/portfolio, while its legacy portfolio continues to be adversely impacted by the continued generic impact on Revlimid, Pomalyst, Sprycel and Abraxane.
BMY’s Competition in Key Targeted Markets
Oncology is a key therapeutic area of focus for Bristol Myers and the company competes with big pharma giants Merck (MRK - Free Report) and Pfizer (PFE - Free Report) in this space.
The immuno-oncology space is dominated by pharma giant MRK’s blockbuster drug Keytruda (pembrolizumab).
Keytruda is approved for several types of cancer and alone accounts for around 50% of MRK’s pharmaceutical sales. Merck is currently working on different strategies to drive long-term growth of Keytruda.
Developing bispecific antibodies that target two proteins, namely PD-1 and VEGF, has lately been one of the lucrative areas in cancer treatment.
In 2024, Merck received an exclusive global license to develop, manufacture and commercialize LM-299, a novel investigational PD-1/VEGF bispecific antibody from LaNova. Merck’s oncology portfolio boasts a blockbuster PD-L1 inhibitor, Keytruda, and the company is looking to build a diversified oncology pipeline spanning differentiated mechanisms and multiple modalities.
Pfizer (PFE - Free Report) is one of the largest and most successful drugmakers in the field of oncology. It has an innovative oncology product portfolio of antibody-drug conjugates (ADCs), small molecules, bispecifics and other immunotherapies that treat a wide range of cancers, including certain types of breast cancer, genitourinary cancer and hematologic malignancies, as well as certain types of melanoma, gastrointestinal, gynecological and lung cancer. Pfizer also has oncology biosimilars in its portfolio.
PFE also inked a licensing agreement with 3SBio for the development, manufacturing and commercialization of SSGJ-707, a bispecific antibody targeting PD-1 and VEGF, outside China.
BMY’s Price Performance, Valuation & Estimates
Shares of Bristol Myers have gained 25.4% over the past six months compared with the industry’s growth of 22.8%.
Image Source: Zacks Investment Research
From a valuation standpoint, BMY is trading at a discount to the large-cap pharma industry. Going by the price/earnings ratio, shares currently trade at 9.02x forward earnings, higher than its mean of 8.41x but lower than the large-cap pharma industry’s 18.18x.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2025 EPS has moved south to $6.33 from $6.51 in the past 60 days, while that for 2026 has moved north.
Image Source: Zacks Investment Research
BMY currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.