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Bristol Myers Gains 7.2% in a Month: Buy, Sell or Hold the Stock?
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Key Takeaways
Bristol Myers Squibb stock rose 7.2% in a month, beating its industry, sector and the S&P 500.
Higher demand for Opdivo, Reblozyl, Breyanzi and Camzyos fueled stronger Q3 sales and revenue guidance.
New drug approvals, including Cobenfy for schizophrenia, broaden BMY's portfolio amid legacy drug declines.
The going has been good for Bristol Myers Squibb (BMY - Free Report) over the past month. Shares of this biotech giant have gained 7.2% in a month compared with the industry’s growth of 3.8%. BMY has even outperformed the sector and S&P 500 Index in this timeframe.
BMY Outperforms Industry, Sector & S&P 500 Index
Image Source: Zacks Investment Research
Much of the above-mentioned gain was recorded after the company reported better-than-expected results for the third quarter on Oct. 30, buoyed by higher demand for Opdivo, Breyanzi, Reblozyl and Camzyos. Concurrently, BMY raised its revenue guidance to reflect this performance.
Although BMY beat on earnings in each of the trailing four quarters, the stock’s year-to-date performance has been disappointing. While the year started on a positive note and the stock touched a 52-week high of $63.33 on March 11, it has been on a downward trend thereafter. The stock touched a 52-week low of $42.52 on Oct. 29.
Let us analyze BMY’s fundamentals in such a scenario to help make a prudent investment choice:
Sales from this portfolio grew 18% year over year to $6.9 billion.
Opdivo sales in the United States are being driven by a strong launch in MSI-high colorectal cancer and continued growth in first-line non-small cell lung cancer, while sales outside the country are being driven by demand for multiple indications.
The approval of Opdivo Qvantig (nivolumab and hyaluronidase-nvhy) injection for subcutaneous use has boosted BMY’s immuno-oncology portfolio. The initial uptake has been strong and the launch is going well in the United States across all indicated tumor types.
BMY now expects global Opdivo sales, together with Qvantig, to deliver stronger growth than previously guided, with full-year sales projected to rise in the high single-digit to low double-digit range.
The stellar performance of the thalassemia drug Reblozyl, for which BMY has a collaboration agreement with Merck (MRK - Free Report) , has significantly boosted BMY’s top line. BMY is now annualizing over $2 billion in Reblozyl sales. Revenue growth continues to be strong, primarily due to demand in first-line RS-positive and RS-negative settings as well as improved duration of therapy.
Breyanzi sales are now annualizing over $1 billion, reflecting strong growth in large B-cell lymphoma and expansion in new indications approved last year.
Cardiovascular drug Camzyos sales continue to increase on robust demand.
BMY had earlier won FDA approval for xanomeline and trospium chloride (formerly KarXT), an oral medication for the treatment of schizophrenia, in adults. The drug was approved under the brand name Cobenfy.
Cobenfy represents the first new pharmacological approach to treating schizophrenia in decades. The initial uptake is encouraging, with sales of $105 million year to date. Cobenfy is expected to contribute meaningfully to BMY’s top line in the coming years as the company looks to expand the drug’s label into other indications.
These drugs should maintain top-line momentum in the coming quarters.
BMY’s Legacy Portfolio Continues to Decline
As expected, revenues for the Legacy Portfolio continue to decline. Sales decreased 12% to $5.4 billion due to the continued generic impact on Revlimid, Pomalyst, Sprycel and Abraxane.
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 global sales surged 25%, primarily due to strong demand.
BMY continues to expect the legacy portfolio to decline approximately 15% to 17% in 2025.
BMY’s Recent Collaborations Bode Well
BMY recently announced that it will acquire privately held biotechnology company Orbital Therapeutics for $1.5 billion in cash.
The acquisition will add OTX-201, Orbital’s lead RNA immunotherapy preclinical candidate currently in IND-enabling studies, to BMY’s pipeline. OTX-201, a next-generation CAR T-cell therapy, is designed to reprogram cells in vivo with a potential best-in-class profile for autoimmune disease. BMY will also add Orbital’s proprietary RNA platform to its pipeline.
The company had earlier collaborated with BioNTech (BNTX) for the global co-development and co-commercialization of BioNTech’s investigational bispecific antibody BNT327 across numerous solid tumor types.
Under the agreement, BNTX and BMY will work jointly to broaden and accelerate the development of this pipeline candidate.
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.
BMY’s Valuation and Estimate Revision
Going by the price/earnings ratio, BMY is inexpensive as of now. Shares currently trade at 7.67x forward earnings, lower than its mean of 8.42x and the large-cap pharma industry’s 15.57x.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2025 EPS has moved south to $6.48 from $6.51 in the past 30 days, while that for 2026 has remained unchanged at $6.02.
BMY’s Estimate Movement
Image Source: Zacks Investment Research
Stay Invested in BMY Stock
BMY is one of the largest biotechs and such large biotech companies are generally considered safe havens for investors interested in this sector. BMY’s performance has been strong in the first nine months of 2025 as drugs like Opdivo, Reblozyl, Breyanzi and Camzyos have stabilized 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 as of now and the new drugs will take some time to offset this steep decline. Hence, 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 (5.31%) is a strong reason for existing investors to stay invested.
Image: Shutterstock
Bristol Myers Gains 7.2% in a Month: Buy, Sell or Hold the Stock?
Key Takeaways
The going has been good for Bristol Myers Squibb (BMY - Free Report) over the past month. Shares of this biotech giant have gained 7.2% in a month compared with the industry’s growth of 3.8%. BMY has even outperformed the sector and S&P 500 Index in this timeframe.
BMY Outperforms Industry, Sector & S&P 500 Index
Image Source: Zacks Investment Research
Much of the above-mentioned gain was recorded after the company reported better-than-expected results for the third quarter on Oct. 30, buoyed by higher demand for Opdivo, Breyanzi, Reblozyl and Camzyos. Concurrently, BMY raised its revenue guidance to reflect this performance.
Although BMY beat on earnings in each of the trailing four quarters, the stock’s year-to-date performance has been disappointing. While the year started on a positive note and the stock touched a 52-week high of $63.33 on March 11, it has been on a downward trend thereafter. The stock touched a 52-week low of $42.52 on Oct. 29.
Let us analyze BMY’s fundamentals in such a scenario to help make a prudent investment choice:
Higher Demand of Key Drugs Propels BMY in Q3
BMY’s Growth Portfolio comprises drugs like Opdivo, Opdivo Qvantig, Orencia, Yervoy, Reblozyl, Camzyos, Breyanzi, Opdualag, Zeposia, Abecma, Sotyku, Krazati and Cobenfy.
Sales from this portfolio grew 18% year over year to $6.9 billion.
Opdivo sales in the United States are being driven by a strong launch in MSI-high colorectal cancer and continued growth in first-line non-small cell lung cancer, while sales outside the country are being driven by demand for multiple indications.
The approval of Opdivo Qvantig (nivolumab and hyaluronidase-nvhy) injection for subcutaneous use has boosted BMY’s immuno-oncology portfolio. The initial uptake has been strong and the launch is going well in the United States across all indicated tumor types.
BMY now expects global Opdivo sales, together with Qvantig, to deliver stronger growth than previously guided, with full-year sales projected to rise in the high single-digit to low double-digit range.
The stellar performance of the thalassemia drug Reblozyl, for which BMY has a collaboration agreement with Merck (MRK - Free Report) , has significantly boosted BMY’s top line. BMY is now annualizing over $2 billion in Reblozyl sales. Revenue growth continues to be strong, primarily due to demand in first-line RS-positive and RS-negative settings as well as improved duration of therapy.
Breyanzi sales are now annualizing over $1 billion, reflecting strong growth in large B-cell lymphoma and expansion in new indications approved last year.
Cardiovascular drug Camzyos sales continue to increase on robust demand.
BMY had earlier won FDA approval for xanomeline and trospium chloride (formerly KarXT), an oral medication for the treatment of schizophrenia, in adults. The drug was approved under the brand name Cobenfy.
Cobenfy represents the first new pharmacological approach to treating schizophrenia in decades. The initial uptake is encouraging, with sales of $105 million year to date. Cobenfy is expected to contribute meaningfully to BMY’s top line in the coming years as the company looks to expand the drug’s label into other indications.
These drugs should maintain top-line momentum in the coming quarters.
BMY’s Legacy Portfolio Continues to Decline
As expected, revenues for the Legacy Portfolio continue to decline. Sales decreased 12% to $5.4 billion due to the continued generic impact on Revlimid, Pomalyst, Sprycel and Abraxane.
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 global sales surged 25%, primarily due to strong demand.
BMY continues to expect the legacy portfolio to decline approximately 15% to 17% in 2025.
BMY’s Recent Collaborations Bode Well
BMY recently announced that it will acquire privately held biotechnology company Orbital Therapeutics for $1.5 billion in cash.
The acquisition will add OTX-201, Orbital’s lead RNA immunotherapy preclinical candidate currently in IND-enabling studies, to BMY’s pipeline. OTX-201, a next-generation CAR T-cell therapy, is designed to reprogram cells in vivo with a potential best-in-class profile for autoimmune disease. BMY will also add Orbital’s proprietary RNA platform to its pipeline.
The company had earlier collaborated with BioNTech (BNTX) for the global co-development and co-commercialization of BioNTech’s investigational bispecific antibody BNT327 across numerous solid tumor types.
Under the agreement, BNTX and BMY will work jointly to broaden and accelerate the development of this pipeline candidate.
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.
BMY’s Valuation and Estimate Revision
Going by the price/earnings ratio, BMY is inexpensive as of now. Shares currently trade at 7.67x forward earnings, lower than its mean of 8.42x and the large-cap pharma industry’s 15.57x.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2025 EPS has moved south to $6.48 from $6.51 in the past 30 days, while that for 2026 has remained unchanged at $6.02.
BMY’s Estimate Movement
Image Source: Zacks Investment Research
Stay Invested in BMY Stock
BMY is one of the largest biotechs and such large biotech companies are generally considered safe havens for investors interested in this sector. BMY’s performance has been strong in the first nine months of 2025 as drugs like Opdivo, Reblozyl, Breyanzi and Camzyos have stabilized 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 as of now and the new drugs will take some time to offset this steep decline. Hence, 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 (5.31%) 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.