FDA Approves New Drug by Bristol Myers and Pfizer (PFE, BMY)
The new drug, Eliquis, has been highly anticipated by cardiologists as an alternative to current drugs on the market. Eliquis will be used to reduce the risk of stroke and dangerous blood clots in people with a common heart arrhythmia, atrial fibrillation.
The new drug will compete with a current popular drug on the market warfarin, known by the brand name Coumadin. Insiders are excited for alternative to Coumadin, which requires more careful monitoring. BMY and PFE issued a statement in November suggesting that Eliquis is the only drug in various test groups that has shown an advantage to Coumadin in reducing the risk of strokes and blood clots, major bleeding, and death.
The marketing challenge now facing Bristol Myers and Pfizer is to make Eliquis the drug of choice to treat people with atrial fibrillation. However, BMY and PFE both believe that this new drug will be a blockbuster
Bristol Myers share were up +2.51% in morning trading on Monday while Pfizer shares were up +0.24%.
The Bottom Line
We have been recommending shares of Bristol Myers Squibb (BMY) since Aug.25, 2009, when the stock was trading at $22.58. The company has a 4.39% dividend yield, based on Friday’s closing stock price of $31.90. We have been recommending shares of Pfizer (PFE) since Mar.2, 2012, when the stock was trading at $21.49. The company has a 3.89% dividend yield, based on Friday’s closing stock price of $24.70.
Bristol Myers Squibb Co. (BMY) is recommended at this time, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars. Pfizer Inc. (PFE) is recommended at this time, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars.
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