BMY vs GSK: Which Biopharma Giant Has Better Prospects for Now?

Core Insights - Bristol Myers Squibb (BMY) and GSK PLC (GSK) are leading global biopharma companies with diverse portfolios [1][2] - BMY focuses on transformational therapies across various serious conditions, while GSK has strong positions in HIV, oncology, and respiratory diseases, along with a robust vaccine business [1][2] BMY Overview - BMY's growth portfolio includes drugs like Opdivo, Reblozyl, and Breyanzi, which have shown strong performance and contributed to top-line growth [4][7] - Opdivo sales are driven by its launch in MSI-high colorectal cancer and growth in non-small cell lung cancer, with global sales expected to increase in the high single-digit to low double-digit range by 2025 [5][6] - Reblozyl is annualizing over $2 billion in sales, significantly boosting BMY's revenue [7] - BMY's legacy portfolio is declining, with expectations of a 15-17% decrease in 2025, primarily due to generic competition [10][11] - The company is pursuing acquisitions to enhance its portfolio, including the recent acquisition of Orbital Therapeutics [12][14] GSK Overview - GSK's Specialty Medicines unit is experiencing strong sales growth, driven by successful launches in oncology and long-acting HIV medicines [15] - Key drugs like Nucala and Dovato are significant revenue drivers, with new products expected to further enhance growth [15][17] - GSK's vaccine portfolio is under pressure, but new approvals like Penmenvy are anticipated to help revive growth [18] - GSK has a deep pipeline with promising candidates in late-stage development, which should support future growth [19] Financial Estimates - BMY's 2025 sales are expected to decrease by 0.80%, while EPS is projected to increase by 460% due to low EPS figures in 2024 [20] - GSK's 2025 sales are estimated to grow by 6.92%, with EPS growth of 12.10% [21] Price Performance and Valuation - GSK shares have outperformed BMY over the past year, gaining 42.8% compared to BMY's loss of 3.1% [22] - GSK's shares trade at a forward P/E ratio of 9.85, slightly higher than BMY's 9.19 [23] - BMY offers a higher dividend yield of 4.56% compared to GSK's 3.53% [26] Investment Considerations - Both companies are considered safe investments in the biopharma sector, but GSK is viewed as a better pick due to its diversified portfolio and stronger recent performance [27][29]