TPTX - Bristol Myers downgraded at Raymond James after Turning Point acquisition

Raymond James has lowered its rating on Bristol Myers Squibb (NYSE:BMY) to Market Perform from Outperform after the pharma giant agreed to acquire the clinical-stage oncology biotech Turning Point Therapeutics (TPTX) for $4.1B in cash. The analyst Dane Leone highlights the potentially limited market opportunity for Turning Point’s (TPTX) lead drug candidate repotrectinib, a tyrosine kinase inhibitor targeted at ROS1 and NTRK oncogenic drivers of non-small cell lung cancer (NSCLC). Citing a discussion on targeted therapies for lung cancer, Leone points to the drug’s potential to become a first line option for ROS1+ NSCLC, but with a limited market opportunity as existing therapies generate $500 – $600M in total annually. With Bristol Myers (BMY) expecting U.S. approval for the drug in 2H 2023, the company will have to educate oncologists that continue to prescribe Xalkori, a rival medication from Pfizer, the analyst argues, noting that the issues with high rates

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Bristol Myers downgraded at Raymond James after Turning Point acquisition