Bristol-Myers trial failure has minimal financial impact, says William Blair
William Blair analyst Matt Phipps sees a minimal financial impact to Bristol-Myers Squibb from the failure of the CheckMate-451 trial but he admits that investor sentiment "could use a boost." While this is unfortunate and is the second recent failure of Opdivo in small-cell lung cancer, the financial impact is limited given the small market opportunity and already announced positive competitive results in the frontline setting, Phipps tells investors in a research note. The analyst removed potential sales for small-cell lung cancer post-chemotherapy from his Opdivo estimates, decreasing his 2020 Opdivo estimate by 0.3% to $7.57B and 2021 estimate by 0.6% to $8.92B. His 2020 earinngs per share estimate goes to $4.48 from $4.49 and 2021 estimate goes to $4.94 from $4.96. Phipps keeps an Outperform rating on Bristol-Myers.