Biopharma…such a touchy category of stock, with biopharma for most people is scary you can make a lot of money or you can lose a lot of money. BMY is one stock that falls under this category but can be seen as a less risky investment with a good upside.
The reason that Biopharma is such a risky investment is that it relies heavily on news. This news is what causes you to wake up and see your portfolio up 50% or down 50%. Another thing biopharma relies on is cash, cash is king in the biopharma sphere.
BMY checks these boxes, BMY is a cancer-fighting machine as some hedge fund managers would say. BMY is the owner of many top cancer drugs including Opdivo, Revlimid, Yervoy, and Pomalyst. These oncology drugs account for around 66% of the total sales, this turns out to be $27 billion. A lot of the recent news has been focused on the drug Opdivo.
Opdivo sales have fallen this year because of Merck’s (MRK) drug Keytruda. With Merck taking some of the market with its new drug it’s important for BMY to find an edge, and they have an edge coming up in Q3 2021. BMY is waiting for approval on adjuvant therapy in patients with muscle-invasive urothelial carcinoma.
In my opinion, BMY is not going to see a 50% move up or 50% move down based on this news. But if you want the thrill of holding a biopharma with much less risk I really like this stock.
Check out one of the small caps we think poised to have an attractive, speculative risk vs reward over the next two years: