Could This Cancer Drug Developer’s Stock Make You Filthy Rich?
Cancer remains one of the leading causes of death in the world. Thankfully, cancer rates have been declining for the better part of two decades. For instance, between 2001 and 2017, the cancer death rate decreased by an average of 1.5% per year in the U.S., according to the Centers for Disease Control and Prevention (CDC). Pharmaceutical companies that have developed life-changing cancer treatments have played a significant role in the fight against cancer. One such company is none other than Bristol Myers Squibb (NYSE: BMY).
Year to date, shares of this pharma giant are up by 1.1%, compared to a 12% drop for the S&P 500. Looking a bit further back, though, Bristol Myers' performance hasn't been stellar when compared to that of the broader market. For instance, over the past five years, the company's stock has slid by 3.6%, while the S&P 500 is up by 34.5%. There are good reasons to think Bristol Myers can reverse that trend during the next five years (more on that below), but is it reasonable to think this healthcare company could make you filthy rich?
Bristol Myers boasts several cancer drugs whose sales are growing at a good clip. First, there's Revlimid, a treatment for multiple myeloma. Bristol Myers got its hands on Revlimid thanks to its acquisition of Celgene in a cash and stock transaction valued at $74 billion; this acquisition closed in November of 2019. During the first quarter, Revlimid was Bristol Myers' best-selling product: The multiple myeloma treatment brought in $2.9 billion in revenue, a 13.1% year-over-year increase.
Source Fool.com
