Will Breyanzi's Strong Uptake Help BMY Offset Generic Competition?

Core Insights - Bristol Myers' CAR T cell therapy Breyanzi demonstrated significant growth in Q2, with sales increasing by 125% to $344 million, driven by strong demand and new indication approvals [1][3][10] Group 1: Product Performance - Breyanzi is approved in the U.S. for treating relapsed or refractory large B-cell lymphoma (LBCL) and has received accelerated approval for chronic lymphocytic leukemia and follicular lymphoma [2] - U.S. sales of Breyanzi more than doubled year-over-year to $255 million, attributed to LBCL growth, new indications, and improved manufacturing success [3][10] - International sales nearly tripled to $88 million, reflecting strong demand and market expansion [3] Group 2: Future Outlook - Bristol Myers expects continued strong growth in the second half of 2025, with the FDA accepting a supplemental biologics license application for Breyanzi for treating relapsed or refractory marginal zone lymphoma [4] - The FDA has granted Priority Review for this application, with a target action date set for December 5, 2025 [4] Group 3: Competitive Landscape - Breyanzi faces competition from Gilead Sciences' Yescarta, which reported sales of $393 million in Q2 2025 [6][8] - Other competitors include Novartis' Kymriah, which is approved for acute lymphoblastic leukemia and LBCL [8] Group 4: Financial Performance and Valuation - Bristol Myers' shares have declined by 17.7% year-to-date, contrasting with a 0.9% decline in the industry [9] - The company is trading at a price/earnings ratio of 7.49x forward earnings, lower than its historical mean and the large-cap pharma industry's average of 13.73x [11] - The bottom-line estimate for 2025 has decreased to $6.46 from $6.56, while the estimate for 2026 has increased to $6.07 from $6.03 [12]