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Bristol-Myers Squibb has been struggling financially in recent times.
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The pharmaceutical leader is facing issues like multiple patent expirations.
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Still, it remains appealing due to new product launches, advancements in its pipeline, and dividend offerings.
The last five years have not been easy for Bristol-Myers Squibb (NYSE:BMY). The company has lost patent protection on crucial products, notably the cancer medication Revlimid, which was once its top seller. These issues have contributed to disappointing financial outcomes and weak stock performance.
Can the pharmaceutical giant turn things around next year? We’ll examine whether Bristol-Myers Squibb is a buy, sell, or hold as we approach 2026.
As the decade ends, Bristol-Myers Squibb is facing more patent expirations, notably for Eliquis, an anticoagulant it jointly markets, and Opdivo, a cancer treatment approved for several types of cancer.
In the early months of 2025, Eliquis brought in sales of $11 billion, representing an 8% increase from the previous year. Similarly, Opdivo’s sales rose by 8% to $7.4 billion. Together, these two accounted for more than half of the company’s $35.7 billion in sales through September 30, even though that total reflected a 1% decline from a year prior.
In short, Bristol-Myers Squibb’s revenue was already on a downward trend before facing these significant patent challenges, which could exacerbate the situation moving forward. Therefore, assessing the company’s outlook for the coming years feels a bit bleak.
On a positive note, Bristol-Myers Squibb is actively addressing these hurdles. A key development is Opdivo’s new subcutaneous version, Opdivo Kvantig, which received approval late last year. So, why might patients and doctors prefer this new formulation?
The original version requires intravenous administration only in healthcare facilities with trained professionals, while the new one offers more flexibility, permitting administration in home settings. Plus, it’s quicker, taking just a few minutes versus about 30 minutes for the initial formulation.
Thus, Opdivo Qvantig is not only more convenient but also retains the same effectiveness. It should help mitigate the impact of losing patent exclusivity. However, the company still needs to find a suitable replacement for Eliquis.
Bristol-Myers Squibb likely cannot overcome the challenges posed by a single product, but it has introduced several new drugs in recent years. By leveraging these new offerings, the company might get closer to its goals. Among them are anticancer drugs Opduarag and Breyanzi, both expected to exceed $1 billion in sales for fiscal 2025. There’s also Revrosil, aimed at treating anemia in beta-thalassemia patients, which has already garnered significant attention.
The company isn’t stopping there. Its vast pipeline indicates that more medications are on the horizon, particularly in oncology—its most crucial focus area. With numerous clinical trials in progress for cancer therapies, Bristol-Myers Squibb anticipates several new approvals and expansions in the future.
And that doesn’t even cover research in other fields like immunology and neuroscience. While the patent cliff for Eliquis is substantial, the company is preparing for it, which might instill some confidence in investors about its ability to navigate such challenges.
Bristol-Myers Squibb also stands out as a solid dividend-paying stock. With a forward yield over 4.6%, it’s well above the S&P 500 average of 1.2%. The company has increased its dividend by around 66% over the past decade, and with a manageable cash payout ratio of about 35%, it has room to raise dividends further without jeopardizing other areas like research and development investment. So, what’s the ultimate take on Bristol-Myers Squibb? It seems the impact of the company’s efforts may not be felt right away.
Rolling out new products takes time. Even newly launched products require several years to fill the gap left by older medications after their patent periods end. So while Bristol-Myers Squibb may not be a fast-growth stock, its careful approach along with its reliable dividends should be appealing to more conservative investors looking for solid returns.
Before deciding to purchase Bristol-Myers Squibb stock, keep in mind a few factors:
Our analyst team has highlighted what they believe are the best investment options currently available, and Bristol-Myers Squibb doesn’t make the cut. They’ve identified ten stocks that have the potential for impressive returns over the next few years.
So, it’s worth considering the path ahead for Bristol-Myers Squibb and weighing the options carefully when thinking about future investments.
