Pfizer may buy Bristol-Myers

Senate tax bill raises odds of Pfizer buying Bristol-Myers, says Citi

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Pfizer may buy Bristol-Myers

The Senate tax bill, which lowers the cost of bringing cash back home from outside the U.S., increases the probability of the “often-discussed” potential acquisition of Bristol-Myers Squibb (BMY) by Pfizer (PFE), Citi analyst Andrew Baum tells investors in a research note.

The analyst points out that Pfizer has repeatedly underscored the importance of tax reform both from a competitive angle as well as from a merger perspective.

Further, the analyst says that while Roche’s (RHHBY) IMpower 150 Tecentriq lung cancer data in Geneva will take center stage this week, Bristol-Myers should benefit from two recent positive developments.

The FDA’s and Centers for Medicare and Medicaid Services’ recommendation of Tumor Mutational Burden testing for lung cancer and other tumors will likely materially accelerate adoption and create more favorable reimbursement, Baum writes in a research note partially titled “Stars Converging for BMY.”

The analyst keeps a Buy rating on Bristol shares with a $72 price target. BMY closed at $62.47. PFE ended at $36.06.

On a separate front,  Bristol-Myers Squibb Co.’s blockbuster drug Opdivo had a stunning effect on a lung-cancer patient treated at a Paris hospital: it drained hard-to-reach reservoirs of his HIV infection, too.  The 51-year-old man, who was diagnosed with HIV in 1995, had a “drastic and sustained decrease” in the reservoir of cells where the virus hides to evade existing therapies, researchers wrote in a letter published in the journal Annals of Oncology.

Note that Bristol has a market cap of $102 billion while Pfizer’s market cap is $215 billion.


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