Bristol Myers Loses 19.2% in Six Months: Buy, Sell or Hold?

Core Viewpoint - Bristol Myers (BMY) has faced significant challenges, with shares declining 19.2% over the past six months, underperforming both the industry and the S&P 500 Index [1][8]. Legacy Portfolio Performance - The Legacy Portfolio is experiencing adverse effects from generic competition, particularly for drugs like Revlimid, Pomalyst, Sprycel, and Abraxane, leading to a 17% revenue decline in the first half of 2025 [4]. - Eliquis remains a key revenue driver, with a 1.5% sales increase in the first half, but the overall legacy portfolio is expected to decline by approximately 15% to 17% in 2025, a less severe drop than previously forecasted [5]. Growth Portfolio Performance - BMY's Growth Portfolio includes drugs such as Opdivo, Reblozyl, Breyanzi, and Camzyos, which are showing strong sales momentum [8]. - Opdivo's sales are bolstered by a successful launch in MSI-high colorectal cancer and growth in non-small cell lung cancer, with expectations for mid to high-single-digit growth for the year [9]. - Reblozyl has achieved over $1 billion in global sales year-to-date, while Breyanzi's sales surged over 200% to $607 million in the first half [10]. Financial Position and Debt - As of June 30, 2025, BMY reported cash and equivalents of $12.6 billion against long-term debt of $44.5 billion, raising concerns about its high debt ratio [13]. Collaborations and Future Outlook - BMY has entered a collaboration with BioNTech for the co-development of a bispecific antibody, which has led to a revised earnings per share (EPS) guidance of $6.35-$6.65, down from $6.70-$7 [15]. - The company's shares are trading at a discount compared to the large-cap pharma industry, with a price/earnings ratio of 7.60X forward earnings [16]. Investment Recommendations - Despite the challenges, BMY's strong performance in the first half of 2025 and the potential of its growth portfolio suggest that it remains a viable investment option for current shareholders, especially given its attractive dividend yield of 5.25% [19].