Should You Buy Bristol Myers Squibb Stock At $63?

Should You Buy Bristol Myers Squibb Stock At $63?

The U. S. FDA has approved Abecma, a CAR-T (chimeric antigen receptor T cells) cell immunotherapy for the treatment of relapsed multiple myeloma after four or more prior lines of therapy. Abecma was being developed by Bristol Myers Squibb (NYSE: BMY) and bluebird bio Inc. CAR-T therapy refers to extraction of a patient's own T cells, which are then genetically modified and infused back into the patient's body. These T-Cells target and destroy any abnormal cells, including cancer cells. This is an important win for Bristol Myers Squibb and bluebird bio, given that the CAR-T therapy is expected to grow at a massive 45% CAGR over the next ten years. Many large pharmaceutical companies, including Bristol Myers Squibb, are working on CAR-T therapies. That said, the recent approval marks the only approved CAR-T therapy for the treatment of multiple myeloma. The stock prices of both Bristol Myers Squibb and bluebird bio are expected to see an uptick post this announcement. Last week, we also discussed how BMY's stock looks undervalued at $63, given that multiple positive triggers are expected in the near term, including the FDA approvals. After the multiple myeloma CAR-T therapy approval, eyes will now be on the