Bristol-Myers (BMY, $44.70) and Celgene (CELG, $81.32) Join Hands for Cancer-Drug Bet
In one of the biggest pharmaceutical deals in history, U.S. drugmaker Bristol-Myers Squibb announced last Thursday its plans to acquire Celgene in a cash and stock deal valuing the rival drugmaker at roughly $90 billion, including debt.
As the news of the deal hit the market, shares of Celgene jumped 28% in midmorning trading to ~$85 per share, while shares of Bristol-Myers Squibb tumbled 11% to trade at $47 per share.
Under the terms of the deal, Celgene shareholders will receive $50 in cash for each share held along with one Bristol-Myers Squibb share or $102.43 per share, a premium of 53.7% to Celgene's Wednesday close.
Both companies have faced investor wariness about their growth prospects in the recent past. But once the deal goes through, it is expected to create a company which would be a pharmaceutical leader in cancer and immunologic disease treatments, with huge growth prospects.
According to analysts, the deal is a big win for Celgene, which had just overcome one of its toughest years. With investors concerned over the patent expiration of Celgene's top-selling multiple myeloma drug, Revlimid's, shares have tumbled more than 37% in 2018. Following the deal with Bristol-Myers Squibb, the combined entity is expected to have nine drugs which are expected to generate more than $1bn in annual sales, along with an innovative and strong pipeline of products/treatments in early-stage development with revenue potential of ~$15 billion.
BMY in downward trend: price may drop because broke its higher Bollinger Band on January 07, 2026
BMY broke above its upper Bollinger Band on January 07, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options. The A.I.dvisor looked at 40 similar instances where the stock broke above the upper band. In of the 40 cases the stock fell afterwards. This puts the odds of success at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for BMY moved out of overbought territory on January 15, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 28 similar instances where the indicator moved out of overbought territory. In of the 28 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 6 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BMY declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on January 02, 2026. You may want to consider a long position or call options on BMY as a result. In of 87 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for BMY just turned positive on January 08, 2026. Looking at past instances where BMY's MACD turned positive, the stock continued to rise in of 48 cases over the following month. The odds of a continued upward trend are .
The 50-day moving average for BMY moved above the 200-day moving average on December 23, 2025. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BMY advanced for three days, in of 308 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 195 cases where BMY Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (6.211) is normal, around the industry mean (9.566). P/E Ratio (19.064) is within average values for comparable stocks, (24.500). Projected Growth (PEG Ratio) (1.120) is also within normal values, averaging (1.994). BMY has a moderately high Dividend Yield (0.044) as compared to the industry average of (0.025). P/S Ratio (2.401) is also within normal values, averaging (3.929).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. BMY’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BMY’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 73, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a manufacturer of pharmaceuticals products
Industry PharmaceuticalsMajor
Advertisement