2024-03-19 06:46:45 ET
Summary
- Key BMY program revenue is at risk from loss of patent exclusivity over the next several years.
- The company has turned to acquisitions to fortify its pipeline and revenue streams.
- BMY is relying on its pipeline of new products and recent acquisitions to offset potential revenue losses from patent expiration.
- BMY may be on the value menu for a while as the acquisition strategy may take time to pay off.
Introduction:
Bristol-Myers Squibb ( BMY ) fought its way up the ranks to join some of the top pharma companies by revenue, attaining true "big-pharma" level after its 2019 acquisition of Celgene. With its new acquisition came along a more shareholder-friendly dividend and buyback policy, greatly helped by the prosperous Revlimid product line. But the company has had some growing pains as it's digested one of the largest pharmaceutical mergers in history. These challenges are some of the major drivers of the company's price decline, and from my perspective I would consider avoiding the company for the time being. As I do not currently own shares, I'm avoiding until I see the revenue start to climb beyond the Revlimid and Eliquis declines, only after which I might think to consider a potential position.
Ascent to Big Pharma:
To go into more detail, BMY reached the levels of some of its big pharma peers such at Merck ( MRK ), Pfizer Inc. ( PFE ), and Novartis ( NVS ) in terms of market cap after its Celgene acquisition....
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Bristol-Myers Squibb Is Not A Buy For Me