Pharma Stock Nears 2-Year Low on Multi-Billion Dollar Deal

Analysts were already pessimistic before today's drop

Deputy Editor
Oct 9, 2023 at 2:10 PM
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Shares of major pharmaceutical name Bristol-Myers Squibb Co (NYSE:BMY) are 0.2% lower at $56.54 at last glance, and touched a nearly two-year low of $55.70, after the company agreed to acquire Mirati Therapeutics (MRTX) for up to $5.8 billion. Bristol-Myers Squibb will diversify its oncology business and add drugs for around $58 per share in cash and a non-tradable contingent value right costing around $1 billion.

Analysts have yet to chime in on the deal, but the majority were pessimistic coming into the session. Of the 18 firms in coverage, 11 rated BMY a "hold" or worse. What's more, the security's 12-month average target price of $72.40 is a 28.1% premium to its current perch. 

Today's dip comes on the heel of Bristol-Myers Squibb stock's sixth-straight weekly loss. The security is down 21% in 2023, with the 60-day moving average guiding it lower since April. A short-term bounce could be on the way, however, per the equity's 14-day Relative Strength Index (RSI) of 32.



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