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.
Bristol Myers Gains 6.3% in a Month: Buy, Sell or Hold the Stock?
Read MoreHide Full Article
Key Takeaways
BMY gained 6.3% in a month, outperforming the industry, sector, and broader market indexes.
Newer drugs like Reblozyl, Breyanzi, and Opdualag are helping offset legacy drug patent expirations.
Recent pipeline setbacks in Reblozyl, Camzyos, and Cobenfy phase III trials raise investor concerns.
Bristol Myers ((BMY - Free Report) ) delivered an impressive performance in the past month after being under pressure for quite some time. The stock regained some of its lost ground and added 6.3% in a month compared with the industry’s gain of 3.9%. BMY stock has also outperformed the sector and the S&P 500 during this period.
While pipeline setbacks and generic competition continue to weigh on the shares, investors are pinning hopes on newer drugs and their label expansions to drive growth.
BMY Outperforms Industry, Sector & S&P 500 Index
Image Source: Zacks Investment Research
The stock was previously under pressure, reflecting broader market concerns even though the annual guidance was raised with the first-quarter results.
Let us analyze Bristol Myers’ fundamentals in such a scenario to make a prudent investment choice.
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.
Revenue growth for the leading immuno-oncology drug, Opdivo, has been solid, driven primarily by volume growth.
The FDA had earlier granted approval to OpdivoQvantig (nivolumab and hyaluronidase-nvhy) injection for subcutaneous use. The recent label expansions of the drug should further boost sales.
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.
The FDA has recently accepted the company’s supplemental new drug application (sNDA) for psoriasis drug Sotyktu (deucravacitinib) for review. The sNDA is seeking approval of the drug for the treatment of adults with active psoriatic arthritis. A decision from the regulatory body is expected in March 2026. The European Medicines Agency has also validated Bristol Myers Squibb's Type II variation application to expand the indication for Sotyktu to include this disease.
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.
The recent collaboration agreement with BioNTech ((BNTX - Free Report) ) has strengthened BMY’s pipeline. 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.
Generic Competition for BMY’s Top Drugs: A Headwind
While BMY is progressing with its growth portfolio, its 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.
Pipeline Setbacks Weigh on BMY Stock
BMY recently announced that the phase III study INDEPENDENCE on Reblozyl did not meet its primary endpoint. The study was evaluating Reblozyl with concomitant janus kinase inhibitor therapy in adult patients with myelofibrosis-associated anemia receiving RBC transfusions.
The study did not meet its primary endpoint of RBC transfusion independence during any consecutive 12-week period, starting within the first 24 weeks of treatment, compared to placebo. Patients saw a numerical and clinically meaningful improvement in RBC transfusion independence favoring Reblozyl, in line with previous results from the phase II study.
Several important secondary measures also showed a clinically meaningful benefit favoring Reblozyl. Nonetheless, BMY plans to engage with the FDA and EMA to discuss the submission of marketing applications.
Earlier, 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.
Investors will be concerned about these setbacks as BMY is depending on these drugs to move forward.
BMY’s Valuation and Estimate Revision
From a valuation standpoint, BMY is trading at a discount to the large-cap pharma industry. Going by the price/earnings ratio, BMY’s shares currently trade at 7.93x forward earnings, lower than its mean of 8.51x and the large-cap pharma industry’s 15.26X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2025 EPS has moved down to $6.37 from $6.89 in the past 60 days and that for 2026 has declined 6 cents.
BMY’s Estimate Movement
Image Source: Zacks Investment Research
Stay Invested in BMY Stock
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.
While the recent rally offers hope for a turnaround, generic competition is a major headwind for the company and the new drugs will take some time to offset this steep decline. 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 (5.16%) is a strong reason for existing investors to stay invested.
Image: Shutterstock
Bristol Myers Gains 6.3% in a Month: Buy, Sell or Hold the Stock?
Key Takeaways
Bristol Myers ((BMY - Free Report) ) delivered an impressive performance in the past month after being under pressure for quite some time. The stock regained some of its lost ground and added 6.3% in a month compared with the industry’s gain of 3.9%. BMY stock has also outperformed the sector and the S&P 500 during this period.
While pipeline setbacks and generic competition continue to weigh on the shares, investors are pinning hopes on newer drugs and their label expansions to drive growth.
BMY Outperforms Industry, Sector & S&P 500 Index
Image Source: Zacks Investment Research
The stock was previously under pressure, reflecting broader market concerns even though the annual guidance was raised with the first-quarter results.
Let us analyze Bristol Myers’ fundamentals in such a scenario to make a prudent investment choice.
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.
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 recent label expansions of the drug should further boost sales.
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.
The FDA has recently accepted the company’s supplemental new drug application (sNDA) for psoriasis drug Sotyktu (deucravacitinib) for review. The sNDA is seeking approval of the drug for the treatment of adults with active psoriatic arthritis. A decision from the regulatory body is expected in March 2026. The European Medicines Agency has also validated Bristol Myers Squibb's Type II variation application to expand the indication for Sotyktu to include this disease.
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.
The recent collaboration agreement with BioNTech ((BNTX - Free Report) ) has strengthened BMY’s pipeline. 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.
Generic Competition for BMY’s Top Drugs: A Headwind
While BMY is progressing with its growth portfolio, its 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.
Pipeline Setbacks Weigh on BMY Stock
BMY recently announced that the phase III study INDEPENDENCE on Reblozyl did not meet its primary endpoint. The study was evaluating Reblozyl with concomitant janus kinase inhibitor therapy in adult patients with myelofibrosis-associated anemia receiving RBC transfusions.
The study did not meet its primary endpoint of RBC transfusion independence during any consecutive 12-week period, starting within the first 24 weeks of treatment, compared to placebo. Patients saw a numerical and clinically meaningful improvement in RBC transfusion independence favoring Reblozyl, in line with previous results from the phase II study.
Several important secondary measures also showed a clinically meaningful benefit favoring Reblozyl. Nonetheless, BMY plans to engage with the FDA and EMA to discuss the submission of marketing applications.
Earlier, 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.
Investors will be concerned about these setbacks as BMY is depending on these drugs to move forward.
BMY’s Valuation and Estimate Revision
From a valuation standpoint, BMY is trading at a discount to the large-cap pharma industry. Going by the price/earnings ratio, BMY’s shares currently trade at 7.93x forward earnings, lower than its mean of 8.51x and the large-cap pharma industry’s 15.26X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2025 EPS has moved down to $6.37 from $6.89 in the past 60 days and that for 2026 has declined 6 cents.
BMY’s Estimate Movement
Image Source: Zacks Investment Research
Stay Invested in BMY Stock
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.
While the recent rally offers hope for a turnaround, generic competition is a major headwind for the company and the new drugs will take some time to offset this steep decline. 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 (5.16%) is a strong reason for existing investors to stay invested.
BMY currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.