Bristol Myers Squibb Faces Patent Cliff Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy BMY?
Source: NASDAQ.COM
- Patent Cliff Impact: Bristol Myers Squibb faces an unusually steep patent cliff, with projected sales declines of 48.9% to $2.9 billion for Revlimid and 61.7% to $493 million for Sprycel in 2025, significantly pressuring overall revenue.
- New Drug Potential: Cobenfy, a groundbreaking antipsychotic, could generate $3.4 billion in annual sales if approved by the FDA in 2026, potentially offsetting losses from Eliquis and Opdivo, thus enhancing future growth prospects for the company.
- Financial Stability: Despite the looming patent expirations, Bristol Myers Squibb offers a 4.2% dividend, with payouts consuming less than half of earnings, indicating financial resilience even amid business contractions.
- Attractive Market Valuation: The stock currently trades at less than 10 times this year's earnings estimates, reflecting market awareness of the patent cliff, making it a potentially lucrative buy for investors looking for long-term gains.
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Analyst Views on BMY
Wall Street analysts forecast BMY stock price to fall
20 Analyst Rating
8 Buy
11 Hold
1 Sell
Moderate Buy
Current: 61.600
Low
37.00
Averages
55.86
High
68.00
Current: 61.600
Low
37.00
Averages
55.86
High
68.00
About BMY
Bristol-Myers Squibb Company is a global biopharmaceutical company. It is engaged in the discovery, development and delivery of transformational medicines for patients facing serious diseases in areas: oncology, hematology, immunology, cardiovascular, neuroscience and other areas. Its growth portfolio includes Opdivo (nivolumab), Opdivo Qvantig (nivolumab and hyaluronidase-nvhy), Yervoy (ipilimumab), Reblozyl (luspatercept-aamt), Opdualag (nivolumab and relatlimab-rmbw), Breyanzi (lisocabtagene maraleucel), Camzyos (mavacamten), Zeposia (ozanimod), Abecma (idecabtagene vicleucel), and Sotyktu (deucravacitinib). Its other growth products include Onureg, Inrebic, and Empliciti. Its legacy portfolio includes Eliquis (apixaban), Revlimid (lenalidomide), Pomalyst/Imnovid (pomalidomide), Sprycel (dasatinib), and Abraxane (paclitaxel albumin-bound particles for injectable suspension). Opdivo (nivolumab) is a fully human monoclonal antibody that binds to the PD-1 on T and NKT cells.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
RBC Initiates Coverage of Bristol Myers Squibb with Sector Perform Rating
- Coverage Initiation: RBC Capital Markets has initiated coverage of Bristol Myers Squibb (BMY) with a sector perform rating, indicating that while the company has a solid late-stage pipeline, the risk/reward profile is balanced at current levels.
- Price Target Set: The bank has set a price target of $60, which implies approximately 3% downside based on the February 24 close, reflecting a cautious market outlook on the company's future performance.
- Pipeline Potential: Analyst Trung Huynh noted that Bristol has the most significant Phase 3 paths among large-cap pharma, including milvexian (stroke/AF) and Cobenfy (Alzheimer's psychosis), highlighting its research and development potential.
- Revenue Decline Forecast: Huynh projects that Bristol's revenues will decline from $48 billion in 2025 to $31 billion in 2034, primarily due to around $30 billion in product loss of exclusivity by 2030, emphasizing the need for pipeline approvals to offset this loss.
See More
Overview of FDA Regulatory Developments
- BHA Safety Reassessment: On February 10, 2026, the FDA initiated a comprehensive reassessment of Butylated Hydroxyanisole (BHA) to evaluate its safety in food and food contact substances based on the latest scientific data, despite its classification as a potential human carcinogen in animal studies, which could affect consumer confidence in food safety.
- Hormone Therapy Labeling Updates: On February 12, 2026, the FDA approved labeling updates for six menopausal hormone therapy products, including Prometrium and Divigel, clarifying risk considerations and removing boxed warnings related to cardiovascular disease, breast cancer, and probable dementia, which may enhance market acceptance of these therapies.
- Innovative Device Approval: On the same day, the FDA approved Novocure's Optune Pax, a first-of-its-kind device for treating locally advanced pancreatic cancer, marking a significant technological advancement in cancer treatment and potentially providing new options for patients.
- Biotech Stocks Under Scrutiny: With upcoming FDA decisions in March 2026, biotech stocks are under market scrutiny, and investors should closely monitor the potential impacts of these decisions on related companies, which could trigger market volatility.
See More
Mental Health Treatment Market Set for Accelerated Growth
- Surging Market Demand: With over 970 million people affected by mental health disorders globally, the mental health therapeutics market is projected to exceed $40 billion in the coming years, indicating a strong demand for new treatment options, particularly in depression and anxiety.
- Clinical Milestone: Helus Pharma has appointed former Pfizer Chief Medical Officer Dr. Freda Lewis-Hall to its Board and as Chair of the Scientific Advisory Committee, leveraging her 40 years of experience to enhance the company's clinical development and regulatory strategy in the mental health sector.
- Innovative Drug Prospects: Compass Pathways' COMP360 has shown significant results in clinical trials for treatment-resistant depression, demonstrating efficacy in symptom reduction, which is expected to propel the company's further development in the mental health treatment market.
- Strategic Investment Opportunities: As large pharmaceutical companies seek to refresh their CNS drug pipelines, NSAs are viewed as a high-impact category with expansion potential, attracting investor attention towards clinical milestones and commercialization signals, indicating strong future returns.
See More
Mental Health Drug Market Set for Accelerated Growth
- Surging Market Demand: With over 970 million people affected by mental health disorders globally, the mental health therapeutics market is projected to exceed $40 billion in the coming years, highlighting a strong demand for new treatment options, particularly in depression and anxiety.
- Clinical Milestone: Helus Pharma has appointed former Pfizer Chief Medical Officer Dr. Freda Lewis-Hall to its Board and as Chair of the Scientific Advisory Committee, leveraging her 40 years of industry experience to drive clinical strategy and regulatory engagement in the development of novel serotonergic agonists (NSAs).
- Investment Appeal: As awareness of new serotonin therapies increases, NSAs are viewed as prime targets for acquisition and partnerships by large pharmaceutical companies, capable of supporting multiple indications and creating long-term investment return potential.
- Clear Regulatory Pathways: The Scientific Advisory Committee at Helus Pharma will provide leadership in clinical and regulatory governance, ensuring that patient outcomes and clinical rigor remain central to the company's growth strategy as it advances its drug pipeline.
See More
Bristol-Myers Squibb Reports Phase 2 Results for Reblozyl in Alpha-Thalassemia
- Clinical Trial Results: Bristol-Myers Squibb's Reblozyl achieved its primary endpoints in a Phase 2 study for alpha-thalassemia, showing a statistically significant increase in hemoglobin levels for non-transfusion-dependent patients and a reduction in transfusion burden for transfusion-dependent patients, highlighting its efficacy and potential market value.
- Safety Assessment: The safety findings were consistent with the known profile of Reblozyl in thalassemia, further enhancing its applicability for patients globally, particularly in China, where treatment options are limited and patient needs are significant.
- Market Performance Analysis: Although Bristol-Myers Squibb's stock is currently trading below its 20-day and 100-day simple moving averages, indicating short-term weakness, it has increased approximately 30% over the past 12 months, suggesting a strong long-term trend as it approaches 52-week highs.
- Analyst Rating Dynamics: The stock carries a Hold rating with an average price target of $60.10, while Piper Sandler and Barclays have both assigned Overweight ratings with target prices raised to $75, reflecting market confidence in its future performance.
See More
Bristol Myers Squibb's Reblozyl Phase 2 Trial Achieves Success
- Significant Trial Results: Bristol Myers Squibb's Reblozyl (luspatercept) successfully met its primary goals in a Phase 2 trial for adults with alpha (α) thalassemia, demonstrating a notable increase in hemoglobin levels in non-transfusion-dependent (NTD) patients.
- Reduced Transfusion Needs: In transfusion-dependent (TD) patients, Reblozyl significantly decreased the red blood cell transfusion burden compared to the placebo group, indicating its potential to improve patient quality of life.
- Expanded Indication: Currently approved for treating anemia in beta thalassemia, the trial results provide new clinical evidence for Reblozyl's application in α thalassemia patients, potentially driving market expansion.
- Optimistic Market Outlook: With the efficacy of Reblozyl validated across different types of thalassemia patients, Bristol Myers Squibb is poised to further solidify its market position in the treatment of blood disorders.
See More
RBC Initiates Coverage of Bristol Myers Squibb with Sector Perform Rating
- Coverage Initiation: RBC Capital Markets has initiated coverage of Bristol Myers Squibb (BMY) with a sector perform rating, indicating that while the company has a solid late-stage pipeline, the risk/reward profile is balanced at current levels.
- Price Target Set: The bank has set a price target of $60, which implies approximately 3% downside based on the February 24 close, reflecting a cautious market outlook on the company's future performance.
- Pipeline Potential: Analyst Trung Huynh noted that Bristol has the most significant Phase 3 paths among large-cap pharma, including milvexian (stroke/AF) and Cobenfy (Alzheimer's psychosis), highlighting its research and development potential.
- Revenue Decline Forecast: Huynh projects that Bristol's revenues will decline from $48 billion in 2025 to $31 billion in 2034, primarily due to around $30 billion in product loss of exclusivity by 2030, emphasizing the need for pipeline approvals to offset this loss.
See More
Overview of FDA Regulatory Developments
- BHA Safety Reassessment: On February 10, 2026, the FDA initiated a comprehensive reassessment of Butylated Hydroxyanisole (BHA) to evaluate its safety in food and food contact substances based on the latest scientific data, despite its classification as a potential human carcinogen in animal studies, which could affect consumer confidence in food safety.
- Hormone Therapy Labeling Updates: On February 12, 2026, the FDA approved labeling updates for six menopausal hormone therapy products, including Prometrium and Divigel, clarifying risk considerations and removing boxed warnings related to cardiovascular disease, breast cancer, and probable dementia, which may enhance market acceptance of these therapies.
- Innovative Device Approval: On the same day, the FDA approved Novocure's Optune Pax, a first-of-its-kind device for treating locally advanced pancreatic cancer, marking a significant technological advancement in cancer treatment and potentially providing new options for patients.
- Biotech Stocks Under Scrutiny: With upcoming FDA decisions in March 2026, biotech stocks are under market scrutiny, and investors should closely monitor the potential impacts of these decisions on related companies, which could trigger market volatility.
See More
Mental Health Treatment Market Set for Accelerated Growth
- Surging Market Demand: With over 970 million people affected by mental health disorders globally, the mental health therapeutics market is projected to exceed $40 billion in the coming years, indicating a strong demand for new treatment options, particularly in depression and anxiety.
- Clinical Milestone: Helus Pharma has appointed former Pfizer Chief Medical Officer Dr. Freda Lewis-Hall to its Board and as Chair of the Scientific Advisory Committee, leveraging her 40 years of experience to enhance the company's clinical development and regulatory strategy in the mental health sector.
- Innovative Drug Prospects: Compass Pathways' COMP360 has shown significant results in clinical trials for treatment-resistant depression, demonstrating efficacy in symptom reduction, which is expected to propel the company's further development in the mental health treatment market.
- Strategic Investment Opportunities: As large pharmaceutical companies seek to refresh their CNS drug pipelines, NSAs are viewed as a high-impact category with expansion potential, attracting investor attention towards clinical milestones and commercialization signals, indicating strong future returns.
See More
Mental Health Drug Market Set for Accelerated Growth
- Surging Market Demand: With over 970 million people affected by mental health disorders globally, the mental health therapeutics market is projected to exceed $40 billion in the coming years, highlighting a strong demand for new treatment options, particularly in depression and anxiety.
- Clinical Milestone: Helus Pharma has appointed former Pfizer Chief Medical Officer Dr. Freda Lewis-Hall to its Board and as Chair of the Scientific Advisory Committee, leveraging her 40 years of industry experience to drive clinical strategy and regulatory engagement in the development of novel serotonergic agonists (NSAs).
- Investment Appeal: As awareness of new serotonin therapies increases, NSAs are viewed as prime targets for acquisition and partnerships by large pharmaceutical companies, capable of supporting multiple indications and creating long-term investment return potential.
- Clear Regulatory Pathways: The Scientific Advisory Committee at Helus Pharma will provide leadership in clinical and regulatory governance, ensuring that patient outcomes and clinical rigor remain central to the company's growth strategy as it advances its drug pipeline.
See More
Bristol-Myers Squibb Reports Phase 2 Results for Reblozyl in Alpha-Thalassemia
- Clinical Trial Results: Bristol-Myers Squibb's Reblozyl achieved its primary endpoints in a Phase 2 study for alpha-thalassemia, showing a statistically significant increase in hemoglobin levels for non-transfusion-dependent patients and a reduction in transfusion burden for transfusion-dependent patients, highlighting its efficacy and potential market value.
- Safety Assessment: The safety findings were consistent with the known profile of Reblozyl in thalassemia, further enhancing its applicability for patients globally, particularly in China, where treatment options are limited and patient needs are significant.
- Market Performance Analysis: Although Bristol-Myers Squibb's stock is currently trading below its 20-day and 100-day simple moving averages, indicating short-term weakness, it has increased approximately 30% over the past 12 months, suggesting a strong long-term trend as it approaches 52-week highs.
- Analyst Rating Dynamics: The stock carries a Hold rating with an average price target of $60.10, while Piper Sandler and Barclays have both assigned Overweight ratings with target prices raised to $75, reflecting market confidence in its future performance.
See More
Bristol Myers Squibb's Reblozyl Phase 2 Trial Achieves Success
- Significant Trial Results: Bristol Myers Squibb's Reblozyl (luspatercept) successfully met its primary goals in a Phase 2 trial for adults with alpha (α) thalassemia, demonstrating a notable increase in hemoglobin levels in non-transfusion-dependent (NTD) patients.
- Reduced Transfusion Needs: In transfusion-dependent (TD) patients, Reblozyl significantly decreased the red blood cell transfusion burden compared to the placebo group, indicating its potential to improve patient quality of life.
- Expanded Indication: Currently approved for treating anemia in beta thalassemia, the trial results provide new clinical evidence for Reblozyl's application in α thalassemia patients, potentially driving market expansion.
- Optimistic Market Outlook: With the efficacy of Reblozyl validated across different types of thalassemia patients, Bristol Myers Squibb is poised to further solidify its market position in the treatment of blood disorders.
See More
