Bristol, October 12, 2025
News Summary
Bristol Myers Squibb is facing significant challenges due to the loss of patent exclusivity on key drugs, resulting in increased competition from generics and a stock decline of approximately 34% from its peak. Despite these issues, the company’s diverse portfolio shows growth in other areas, with total revenues up 9% in Q2 2023. Analysts are optimistic, raising the consensus rating for BMY stock from ‘Hold’ to ‘Moderate Buy’, while the company maintains a positive outlook with several pipeline products in development.
Bristol Myers Squibb (NYSE: BMY) is facing significant challenges as it navigates the loss of patent exclusivity on its leading drugs, leading to increased competition from generics. This situation has negatively impacted the company’s stock, which has dropped approximately 34% from its peak in 2022. Despite these challenges, there are indications of a potential turnaround as the company reveals growth in other areas.
The pharmaceutical giant boasts a diverse portfolio with over 30 products across various medical fields including hematology, oncology, cardiology, immunology, and neuroscience. High-profile drugs in its lineup include Eliquis, a widely used blood thinner, and Opdivo, an innovative cancer immunotherapy. Despite these strengths, the company has suffered a drop in revenue due to the loss of exclusivity on Revlimid, a medication used to treat multiple myeloma and lymphoma, which saw its revenue plummet from $3.3 billion at the end of 2021 to $1.3 billion by the second quarter of 2023.
In addition to Revlimid, the chemotherapy drug Abraxane has also experienced a sales decline following patent expiration. Nevertheless, Bristol Myers Squibb’s total revenues improved by 9% in Q2 2023, marking the strongest quarterly performance since the fourth quarter of 2021. This increase was primarily driven by an 18% boost in sales from the company’s growth portfolio.
In light of these results, the company has raised its full-year revenue growth guidance to the upper end of a low single-digit range. Projections for earnings per share (EPS) have been adjusted to fall between $0.60 and $0.70 for the year. Compounding this, Bristol Myers Squibb declared a quarterly dividend of $0.60 per share, translating to an attractive yield of approximately 4.9%.
Importantly, the company remains optimistic as it has several pipeline products currently in phase 3 trials with anticipated readouts in the upcoming year. These potential launches may serve as catalysts for growth. Analysts have taken note, raising their consensus rating for BMY stock from “Hold” to “Moderate Buy”, with several upgrades reflecting a more optimistic outlook.
Bristol Myers Squibb’s stock has recently outperformed both the S&P 500 and an industry-focused exchange-traded fund (ETF) over the past year, with analysts echoing positive sentiments regarding the company’s future. Despite setbacks, including the failure of certain drug candidates, management maintains an optimistic outlook, positioning the recent decline in the stock price as a potential value entry point for long-term investors interested in both income and growth opportunities.
Key Performance Indicators
- Stock Decline: 34% from 2022 high
- Revlimid Revenue Drop: From $3.3 billion to $1.3 billion
- Total Revenues Q2 2023: Up 9%
- EPS Guidance: $0.60 – $0.70
- Dividend Yield: Approximately 4.9%
- P/E Ratio: 7, lower than the industry average of 13
Conclusion
In summary, despite facing substantial challenges stemming from patent expirations and competition, Bristol Myers Squibb is signaling a possible turnaround supported by a diversified product portfolio and growth in other revenue streams. The strategic adjustments and positive analyst ratings suggest opportunities for recovery and potentially improved stock performance.
FAQ
- What recent challenges has Bristol Myers Squibb faced?
- Bristol Myers Squibb has been struggling to manage the loss of exclusivity for its top-selling drugs, now facing competition from generics.
- What is the stock performance of Bristol Myers Squibb recently?
- The company’s stock is down approximately 34% from its record high in 2022.
- What drugs are key in Bristol Myers Squibb’s portfolio?
- Key drugs in the company’s portfolio include Eliquis (a blood thinner) and Opdivo (a cancer immunotherapy).
- How much did Revlimid’s revenue fall?
- Revenue from Revlimid fell from a peak of $3.3 billion in late 2021 to $1.3 billion in Q2 2023.
- What was the total revenue growth for Q2 2023?
- In Q2 2023, total revenues increased by 9%, the strongest quarterly result since Q4 2021.
- What is Bristol Myers Squibb’s revised earnings per share for the year?
- The company’s projected earnings per share (EPS) for the year has been revised to between $0.60 and $0.70.
- What is Bristol Myers Squibb’s dividend yield?
- The company declared a quarterly dividend of $0.60 per share, yielding approximately 4.9%.
- What is the consensus rating for BMY stock?
- Analysts have raised the consensus rating for BMY stock from “Hold” to “Moderate Buy,” with several rating upgrades.
Deeper Dive: News & Info About This Topic
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Bristol Hosts the 19th Annual Ballad Health Cardiovascular Summit
Additional Resources
- Seeking Alpha: Bristol Myers Squibb Value Emerges from Distress
- Wikipedia: Bristol Myers Squibb
- Nasdaq: Wall Street Analysts Target Price for Bristol Myers Squibb Stock
- Google Search: Bristol Myers Squibb
- Seeking Alpha: Growth Portfolio Surpasses Legacy
- Google Scholar: Bristol Myers Squibb
- Investing.com: Portfolio Transformation Gains Momentum
- Encyclopedia Britannica: Bristol Myers Squibb
- 24/7 Wall St.: Once Dominant Dividend Stock May Rebound
- Google News: Bristol Myers Squibb
Author: STAFF HERE BRISTOL WRITTER
The BRISTOL STAFF WRITER represents the experienced team at HEREBristol.com, your go-to source for actionable local news and information in Bristol, Sullivan County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Bristol Rhythm & Roots Reunion, NASCAR races at Bristol Motor Speedway, Border Bash concert series, and the Hot Bristol Night Car Show. Our coverage extends to key organizations like the Bristol Chamber of Commerce, Believe in Bristol, and the Birthplace of Country Music, plus leading businesses in healthcare, manufacturing, and entertainment that power the local economy such as Ballad Health, Strongwell, and Bristol Motor Speedway. As part of the broader HERE network, including HEREChattanooga.com, HEREKnoxville.com, HEREMemphis.com, and HERENashville.com, we provide comprehensive, credible insights into Tennessee's dynamic landscape.
