Will BMY's Growth Portfolio Drive Third-Quarter Results?

Core Insights - Bristol Myers' (BMY) Growth Portfolio, which includes drugs like Opdivo, Reblozyl, Breyanzi, Camzyos, and Opdualag, has stabilized its revenue despite facing generic competition for legacy drugs [1][9] - Opdivo remains the top revenue generator, with expectations for global sales growth in the mid-to-high single-digit range by 2025, driven by strong initial uptake of the newly approved Qvantig [2][9] - Newer drugs such as Reblozyl, Camzyos, and Breyanzi are contributing positively to revenue growth, countering declines from legacy drugs impacted by generics [3][4][9] Revenue Performance - The performance of newer drugs is crucial for BMY's growth as legacy drug sales continue to decline due to generic competition, particularly affecting Revlimid, Pomalyst, Sprycel, and Abraxane [4] - The company has seen strong momentum in Reblozyl and Camzyos, which are expected to significantly contribute to the top line [3] Competitive Landscape - The oncology sector is a primary focus for Bristol Myers, with significant competition from Merck's Keytruda, which accounts for approximately 50% of Merck's pharmaceutical sales [5] - Pfizer is also a major player in oncology, with a diverse product portfolio and recent licensing agreements to enhance its offerings [6][7] Stock Performance and Valuation - BMY shares have decreased by 19.1% year-to-date, contrasting with the industry growth of 11.6% [8] - The company is currently trading at a price/earnings ratio of 7.14x forward earnings, which is below both its historical mean of 8.43x and the large-cap pharma industry's average of 15.52x [10] Earnings Estimates - The Zacks Consensus Estimate for 2025 earnings per share has been revised down to $6.42 from $6.50 over the past 60 days, while the estimate for 2026 remains unchanged [11]