Where Will Bristol Myers Squibb Be in 5 Years?

Core Viewpoint - Bristol Myers Squibb (BMS) has faced challenges over the past five years, including unimpressive financial results and significant patent expirations, but the company may see a turnaround by 2029 if it effectively navigates these challenges [1] Financial Performance - In Q2, BMS reported a revenue increase of nearly 9% year over year, reaching $12.2 billion, marking its best top-line growth in about three years [2] - The best-selling products during this period were Eliquis, generating $3.4 billion in revenue (up 7% year over year), and Opdivo, with sales of $2.4 billion (up 11% year over year), together accounting for 47.6% of total revenue [3] Patent Cliffs and Future Revenue - Both Eliquis and Opdivo are set to lose patent protection by the end of 2029, which is expected to lead to a decline in revenue [3] - BMS anticipates over $25 billion in revenue from its new product portfolio by 2030, supported by ongoing approvals and clinical trials [4] New Product Pipeline - BMS has received several new approvals since 2019, including Reblozyl ($425 million in Q2, 82% growth), Opdualag ($235 million, 53% growth), and Camzyos ($139 million, 202% growth) [4] - A subcutaneous version of Opdivo is expected to target 65% to 75% of its indications in the U.S., helping to mitigate losses from the upcoming patent cliff [5] Investment Outlook - The company's performance is expected to improve over the next five years, with a strong commitment to increasing dividends, having raised payouts for 15 consecutive years [6] - The forward dividend yield is currently at 5.1%, with a conservative cash payout ratio of just under 37%, positioning BMS as a solid blue-chip dividend stock for long-term investment [6]