JP Morgan Ups Bristol-Myers Squibb to Overweight
JP Morgan upgraded Bristol-Myers Squibb (BMY) to overweight from underweight, citing news late Tuesday that the pharmaceutical company and Sanofi-aventis (SNY) settled with Canadian generic drug maker Apotex over a patent lawsuit.
The suit, which is still subject to Federal Trade Commission approval, relates to the validity of a patent for the blood-thinning medication Plavix.
Analyst Chris Shibutani says the news lifts (albeit not yet definitively) a big uncertainty that had been overhanging the stock's value. The analyst says shares can now better reflect the company's improving business trends. JP Morgan says investors can focus on factors such as the company's attractive new product Orencia and other opportunities.