We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BMY Loses 16.3% YTD: Should You Buy, Sell or Hold the Stock?
Read MoreHide Full Article
Key Takeaways
BMY stock lags with a 16.3% YTD drop, trailing the industry, sector, and S&P 500 in 2025.
Generic hits to top drugs and pipeline setbacks have weighed on investor sentiment despite strong Q1.
Newer drugs like Reblozyl, Breyanzi, and Opdualag help stabilize revenues and diversify BMY's portfolio.
The first half of 2025 has been topsy-turvy for Bristol Myers (BMY - Free Report) . Shares of this biotech giant have lost 16.3% year to date compared with the industry’s decline of 2.7%. The stock has also underperformed the sector and the S&P 500 during this period.
While a slew of positive regulatory updates boosted the stock, pipeline setbacks and generic competition weighed on the same.
BMY Underperforms Industry, Sector & S&P 500 Index
Image Source: Zacks Investment Research
Even though the first-quarter performance was better than expected and BMY raised its annual revenue guidance, the stock has been on a downslide thereafter, likely reflecting broader market concerns and investors’ skepticism about its growth prospects.
Let us analyze Bristol Myers’ fundamentals in such a scenario to make a prudent investment choice.
Generic Competition for BMY’s Top Drugs: A Headwind
Legacy Portfolio is being adversely impacted due to continued generic impact on Revlimid, Pomalyst, Sprycel and Abraxane, as well as the U.S. Medicare Part D redesign effect.
Among these, blood thinner medicine Eliquis, for which BMY has a worldwide co-development and co-commercialization agreement with pharma giant Pfizer (PFE - Free Report) , is the biggest contributor to the top line.
Eliquis sales were down 4% in the first quarter due to the impact of Medicare Part D redesign in the United States. The company expects sales to steadily increase in the second half of 2025 due to the elimination of the coverage gap.
BMY’s Newer Drugs Stabilize Revenue Base
BMY is relying on newer drugs, such as Opdualag, Reblozyl, and Breyanzi, to stabilize its revenue base as its legacy drugs face generic competition. Thalassemia drug Reblozyl, for which BMY has a collaboration agreement with Merck (MRK - Free Report) , has delivered a stellar performance since its approval, driven by strong growth in the first and second-line treatment of myelodysplastic syndromes (MDS)- associated anemia. The drug is expected to make a significant contribution in the coming decade.
Revenue growth for the leading immuno-oncology drug, Opdivo, has been solid, driven primarily by volume growth.
The FDA had earlier granted approval to Opdivo Qvantig (nivolumab and hyaluronidase-nvhy) injection for subcutaneous use. The European Commission (“EC”) recently approved the perioperative regimen of neoadjuvant Opdivo and chemotherapy, followed by surgery and adjuvant Opdivo, for the treatment of resectable non-small cell lung cancer at high risk of recurrence in adult patients whose tumors have PD-L1 expression ≥1%. The company recently received EC approval for the subcutaneous formulation of Opdivo across multiple solid tumor indications.
Sales of CAR T cell therapy, Breyanzi, also continue to gain traction from the approval of new indications and expanded manufacturing capacity. Camzyos has also witnessed strong global uptake in obstructive HCM.
BMY had earlier won FDA approval for xanomeline and trospium chloride (formerly KarXT), an oral medication for the treatment of schizophrenia, in adults, under the brand name Cobenfy.
The approval broadens BMY’s portfolio. Cobenfy represents the first new pharmacological approach to treating schizophrenia in decades. This drug is expected to contribute meaningfully to BMY’s top line in the coming years.
BMY recently entered into a collaboration agreement with BioNTech (BNTX - Free Report) . Both companies have entered into an agreement for the global co-development and co-commercialization of BioNTech’s investigational bispecific antibody BNT327 across numerous solid tumor types.
Developing bispecific antibodies that target two proteins, namely PD-1 and VEGF, has lately been one of the lucrative areas in cancer treatment. BNT327, a next-generation bispecific antibody candidate, targets PD-L1 and VEGF-A.
Pipeline Setbacks Weigh on BMY Stock
BMY has experienced a few pipeline setbacks in recent months, which negatively impacted its share price.
The late-stage ODYSSEY-HCM study, evaluating cardiovascular drug Camzyos for the treatment of adult patients with symptomatic New York Heart Association (“NYHA”) class II-III non-obstructive hypertrophic cardiomyopathy, did not meet its dual primary endpoints.
The top-line results from the phase III ARISE study on schizophrenia drug Cobenfy were also disappointing. The study is evaluating the efficacy and safety of the drug as an adjunctive treatment to atypical antipsychotics in adults with inadequately controlled symptoms of schizophrenia. Treatment with Cobenfy as an adjunctive demonstrated a 2.0-point reduction in the Positive and Negative Syndrome Scale total score compared to placebo with an atypical antipsychotic at week six. However, this data did not reach the threshold for statistical significance for the primary endpoint.
BMY’s High Debt Ratio Worrisome
While BMY’s strategy of acquiring companies with promising drugs and candidates is encouraging, it has resulted in substantial debt to finance these acquisitions.
As of March 31, 2025, the company had cash and equivalents of $12.1 billion and a long-term debt of $46.1 billion.
BMY’s Valuation and Estimate Revision
Going by the price/earnings ratio, BMY’s shares currently trade at 7.24x forward earnings, lower than its mean of 8.54x and the large-cap pharma industry’s 14.77x.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2025 EPS has moved down to $6.76 from $6.87 in the past 60 days, while that for 2026 has dipped to $6.04 from $6.07.
BMY’s Estimate Movement
Image Source: Zacks Investment Research
Stay Invested in BMY Stock
Large biotech companies are generally considered safe havens for investors interested in this sector. Drugs like Reblozyl, Breyanzi, Camzyos and Opdualag have enabled BMY to stabilize its revenue base amid generic competition for its legacy drugs. Approval of additional new drugs and label expansion of top drugs should further diversify its pipeline.
However, generic competition is a major headwind for the company and the new drugs will take some time to offset this steep decline. The recent pipeline setbacks weigh on the stock. We recommend prospective investors to wait and watch for the time being.
For investors already owning the stock, staying invested would be a prudent move. The company’s attractive dividend yield (5.35%) is a strong reason for existing investors to stay invested.
Image: Shutterstock
BMY Loses 16.3% YTD: Should You Buy, Sell or Hold the Stock?
Key Takeaways
The first half of 2025 has been topsy-turvy for Bristol Myers (BMY - Free Report) . Shares of this biotech giant have lost 16.3% year to date compared with the industry’s decline of 2.7%. The stock has also underperformed the sector and the S&P 500 during this period.
While a slew of positive regulatory updates boosted the stock, pipeline setbacks and generic competition weighed on the same.
BMY Underperforms Industry, Sector & S&P 500 Index
Image Source: Zacks Investment Research
Even though the first-quarter performance was better than expected and BMY raised its annual revenue guidance, the stock has been on a downslide thereafter, likely reflecting broader market concerns and investors’ skepticism about its growth prospects.
Let us analyze Bristol Myers’ fundamentals in such a scenario to make a prudent investment choice.
Generic Competition for BMY’s Top Drugs: A Headwind
Legacy Portfolio is being adversely impacted due to continued generic impact on Revlimid, Pomalyst, Sprycel and Abraxane, as well as the U.S. Medicare Part D redesign effect.
Among these, blood thinner medicine Eliquis, for which BMY has a worldwide co-development and co-commercialization agreement with pharma giant Pfizer (PFE - Free Report) , is the biggest contributor to the top line.
Eliquis sales were down 4% in the first quarter due to the impact of Medicare Part D redesign in the United States. The company expects sales to steadily increase in the second half of 2025 due to the elimination of the coverage gap.
BMY’s Newer Drugs Stabilize Revenue Base
BMY is relying on newer drugs, such as Opdualag, Reblozyl, and Breyanzi, to stabilize its revenue base as its legacy drugs face generic competition. Thalassemia drug Reblozyl, for which BMY has a collaboration agreement with Merck (MRK - Free Report) , has delivered a stellar performance since its approval, driven by strong growth in the first and second-line treatment of myelodysplastic syndromes (MDS)- associated anemia. The drug is expected to make a significant contribution in the coming decade.
Revenue growth for the leading immuno-oncology drug, Opdivo, has been solid, driven primarily by volume growth.
The FDA had earlier granted approval to Opdivo Qvantig (nivolumab and hyaluronidase-nvhy) injection for subcutaneous use. The European Commission (“EC”) recently approved the perioperative regimen of neoadjuvant Opdivo and chemotherapy, followed by surgery and adjuvant Opdivo, for the treatment of resectable non-small cell lung cancer at high risk of recurrence in adult patients whose tumors have PD-L1 expression ≥1%. The company recently received EC approval for the subcutaneous formulation of Opdivo across multiple solid tumor indications.
Sales of CAR T cell therapy, Breyanzi, also continue to gain traction from the approval of new indications and expanded manufacturing capacity. Camzyos has also witnessed strong global uptake in obstructive HCM.
BMY had earlier won FDA approval for xanomeline and trospium chloride (formerly KarXT), an oral medication for the treatment of schizophrenia, in adults, under the brand name Cobenfy.
The approval broadens BMY’s portfolio. Cobenfy represents the first new pharmacological approach to treating schizophrenia in decades. This drug is expected to contribute meaningfully to BMY’s top line in the coming years.
BMY recently entered into a collaboration agreement with BioNTech (BNTX - Free Report) . Both companies have entered into an agreement for the global co-development and co-commercialization of BioNTech’s investigational bispecific antibody BNT327 across numerous solid tumor types.
Developing bispecific antibodies that target two proteins, namely PD-1 and VEGF, has lately been one of the lucrative areas in cancer treatment. BNT327, a next-generation bispecific antibody candidate, targets PD-L1 and VEGF-A.
Pipeline Setbacks Weigh on BMY Stock
BMY has experienced a few pipeline setbacks in recent months, which negatively impacted its share price.
The late-stage ODYSSEY-HCM study, evaluating cardiovascular drug Camzyos for the treatment of adult patients with symptomatic New York Heart Association (“NYHA”) class II-III non-obstructive hypertrophic cardiomyopathy, did not meet its dual primary endpoints.
The top-line results from the phase III ARISE study on schizophrenia drug Cobenfy were also disappointing. The study is evaluating the efficacy and safety of the drug as an adjunctive treatment to atypical antipsychotics in adults with inadequately controlled symptoms of schizophrenia. Treatment with Cobenfy as an adjunctive demonstrated a 2.0-point reduction in the Positive and Negative Syndrome Scale total score compared to placebo with an atypical antipsychotic at week six. However, this data did not reach the threshold for statistical significance for the primary endpoint.
BMY’s High Debt Ratio Worrisome
While BMY’s strategy of acquiring companies with promising drugs and candidates is encouraging, it has resulted in substantial debt to finance these acquisitions.
As of March 31, 2025, the company had cash and equivalents of $12.1 billion and a long-term debt of $46.1 billion.
BMY’s Valuation and Estimate Revision
Going by the price/earnings ratio, BMY’s shares currently trade at 7.24x forward earnings, lower than its mean of 8.54x and the large-cap pharma industry’s 14.77x.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2025 EPS has moved down to $6.76 from $6.87 in the past 60 days, while that for 2026 has dipped to $6.04 from $6.07.
BMY’s Estimate Movement
Image Source: Zacks Investment Research
Stay Invested in BMY Stock
Large biotech companies are generally considered safe havens for investors interested in this sector. Drugs like Reblozyl, Breyanzi, Camzyos and Opdualag have enabled BMY to stabilize its revenue base amid generic competition for its legacy drugs. Approval of additional new drugs and label expansion of top drugs should further diversify its pipeline.
However, generic competition is a major headwind for the company and the new drugs will take some time to offset this steep decline. The recent pipeline setbacks weigh on the stock. We recommend prospective investors to wait and watch for the time being.
For investors already owning the stock, staying invested would be a prudent move. The company’s attractive dividend yield (5.35%) is a strong reason for existing investors to stay invested.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.