Bristol Myers Squibb Strategizes New Drug Launches to Counter Patent Expirations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 30 2025
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Should l Buy BMY?
Source: Fool
- Patent Crisis: Bristol Myers Squibb faces patent expirations for key products including Eliquis and Opdivo, which are projected to significantly impact future revenues, especially as these drugs generated a combined $18.4 billion in sales in 2025, accounting for 51% of total revenue.
- New Drug Launch: The newly approved subcutaneous version of Opdivo, Opdivo Qvantig, is expected to replace the original intravenous formulation, enhancing patient convenience while maintaining efficacy, thereby mitigating revenue losses post-patent expiration.
- Sales Growth Potential: The company's cancer drugs Opdualag and Breyanzi are on track to exceed $1 billion in sales for fiscal 2025, with Reblozyl already in blockbuster territory, indicating strong potential in new drug development.
- Robust Dividend Policy: With a dividend yield exceeding 4.6% and a 66% increase over the past decade, Bristol Myers Squibb offers stable returns to investors while maintaining sufficient cash flow for further R&D investments.
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Analyst Views on BMY
Wall Street analysts forecast BMY stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for BMY is 55.86 USD with a low forecast of 37.00 USD and a high forecast of 68.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
8 Buy
11 Hold
1 Sell
Moderate Buy
Current: 60.770
Low
37.00
Averages
55.86
High
68.00
Current: 60.770
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.
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- Significant New Drug Contributions: Opdualag, Breyanzi, and Camzyos each contributed over $1 billion in annual sales, while Reblozyl exceeded $2 billion, indicating the company's success in drug development and market penetration.
- Optimistic Future Outlook: The company projects 2026 revenue between $46 billion and $47.5 billion, with adjusted EPS guidance of $6.05 to $6.35, reflecting ongoing confidence in the growth portfolio and the effectiveness of its cost-saving initiatives.
- Robust Financial Position: As of December 31, 2025, the company reported approximately $11 billion in cash and marketable securities, with $2 billion in operating cash flow for Q4 and the completion of a $10 billion debt paydown ahead of schedule, showcasing strong financial flexibility and ongoing investment capability.
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- Exceeding Market Expectations: The company's non-GAAP net income reached $2.6 billion ($1.26 per share), surpassing analyst expectations of $1.12 per share, while revenue also exceeded the consensus estimate of $12.2 billion, reflecting the company's competitive position in the market.
- Positive Future Outlook: Management projects 2026 revenue between $46 billion and $47.5 billion, with adjusted earnings per share of $6.05 to $6.35, both exceeding analyst forecasts, indicating strong confidence in future growth.
- Legacy Product Challenges: Despite strong performance from new products, legacy products experienced a 16% revenue decline during the period, which may pose challenges to the company's long-term growth and warrants attention regarding its impact on overall performance.
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