Why did Bristol-Myers Squibb Company fall on 5 October?
Written after the close on
Bristol-Myers Squibb Company −3.83%
Bristol-Myers Squibb fell very sharply as a pipeline downgrade hit. Over the last five trading days Bristol-Myers Squibb fell very sharply, moving against a clearly rising broad market and doing worse than a clearly falling healthcare sector, with the drop concentrated in the latest session. The most likely driver is a broker downgrade to a neutral rating on doubts about key drug candidates in the company's development pipeline — the "pipeline" being the experimental medicines it is testing — which landed in the latest session and weighed on sentiment. A potential liver safety concern flagged in a late-stage trial of admilparant, a lung-scarring treatment, likely added to the pressure, and the shares also went ex-dividend last week, meaning they began trading without the upcoming payout, which mechanically trims the quoted price. What to watch next is the earnings report due late this month, along with any clarity on the pipeline doubts and the admilparant safety question.
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