Bristol Myers Gains 6.3% in a Month: Buy, Sell or Hold the Stock?

Core Insights - Bristol Myers (BMY) has shown a strong performance recently, gaining 6.3% in a month, outperforming the industry (3.9% gain) and the S&P 500 [1][7] - The company is focusing on newer drugs to stabilize revenue as legacy drugs face generic competition [4][10] - Recent pipeline setbacks have raised investor concerns, but there is optimism around new drug approvals and label expansions [7][20] Financial Performance - BMY's stock performance has improved after being under pressure, with a raised annual guidance following first-quarter results [3] - The company is trading at a price/earnings ratio of 7.93x forward earnings, lower than the large-cap pharma industry's average of 15.26x [16] - The Zacks Consensus Estimate for 2025 EPS has decreased from $6.89 to $6.37 over the past 60 days [18] Drug Pipeline and Growth Drivers - New drugs like Opdualag, Reblozyl, and Breyanzi are crucial for offsetting the impact of legacy drug patent expirations [4][7] - Opdivo has shown solid revenue growth driven by volume, with recent label expansions expected to boost sales further [5] - The FDA has accepted a supplemental new drug application for Sotyktu, with a decision expected in March 2026 [6] Challenges and Setbacks - Generic competition is impacting sales of key drugs like Revlimid and Eliquis, with Eliquis sales down 4% in Q1 due to Medicare Part D redesign [10][11] - Recent phase III study results for Reblozyl and Camzyos did not meet primary endpoints, raising concerns among investors [12][15] - The company plans to engage with regulatory bodies regarding marketing applications despite these setbacks [14] Strategic Collaborations - A recent collaboration with BioNTech for the co-development of bispecific antibody BNT327 is expected to enhance BMY's pipeline in cancer treatment [9]