Bristol Myers Squibb is a global specialty biopharmaceutical company. It focuses on diseases such as oncology, cardiovascular, immunoscience and fibrosis. The company’s planned acquisition of Celgene should further position it as a leading biopharmaceutical company, expanding its oncology and immunoscience portfolios.
About 56% of Bristol Myers’ 2018 revenues were derived from the U.S., 25% from Europe and 19% from the rest of the world. More than 90% of Bristol Meyers’ total sales are from prioritized brands, which include Opdivo, Eliquis, Orencia, Sprycel, Yervoy, and Empliciti, while established brands like Baraclude and others comprise the rest of the revenues. Opdivo and Eliquis are Bristol Myers’ leading brands registering substantial growth in the last year.
Bristol-Myers’ diverse customers include wholesalers, retail pharmacies, hospitals, government entities, and doctors. The company is known for its portfolio of innovative medicines for serious and life-threatening diseases.Investment Data
- Opportunity Score: 41
- Ticker: NYSE:BMY
- Sector: Healthcare
- Industry: Drug Manufacturers
- Market Cap: 155.61B
- P/E: 33.05
- Dividend Yield: 2.71
- Dividend Payout Ratio: 89.55
- Chowder Score: Dividend Snapshot Members Only
- 3, 5, 10-year Revenue Growth: Dividend Snapshot Members Only
- 3, 5, 10-year Dividend Growth: Dividend Snapshot Members Only
Revenue Growth & Market Exposure
Bristol Myers continues to grow through continuous approvals for new medicines and formulations of currently marketed medicines in major markets. As one of the largest biopharmaceutical companies in the world, Bristol Myers offers drugs in various therapeutic areas. Its portfolio of exceptional products continues to achieve new heights. Its Eliquis took a leadership position in the prevention of stroke for patients with atrial fibrillation in the U.S., last year. Bristol Myers is focusing on transforming cancer care across a greater range of tumor types. Opdivo was the first Immuno-Oncology therapy to be approved in China in 2018. In 2018, Opdivo revenue grew by 36% and it got approval in nine tumor types in 17 indications.
Bristol Myers has 17 new IO compounds in clinical development and studies across more than 35 different tumor types. The company’s large IO portfolio positions it well for the future. Its substantial R&D supports its sustainable pipeline of potential therapies.
Bristol Myers’ expected acquisition of Celgene Corporation should result in the creation of a leading focused specialty biopharma company well positioned to address the needs of patients with cancer, inflammatory, immunologic and cardiovascular disease. Over the years, Bristol Myers has developed strong relations with other big drug companies. Other competitive advantages include its large size, extensive resources, and economies of scale.
Bristol Myers’ revenues have grown at a rate of more than 7% CAGR in the last five years. The company’s third quarter results were marked by strong sales, robust operating performance, and continuing advancement of its pipeline. Bristol Myers is targeting to launch an immuno-oncology combination for patients with lung cancer.
Bristol Myers’ is a Dividend Starter. The company has paid its dividend for over 25 years and has raised it for ten consecutive years. Its shares sport an annual average dividend yield of nearly 3% and a reasonable payout ratio of 43%. The company last raised its dividend by 2.5% and has grown its dividend at a rate of 2.4% CAGR in the last three years. Earnings have grown at an impressive 47% CAGR in the last three years.
Bristol Myers continues to advance the next wave of innovative medicines by investing in its pipeline both organically and through business development activities. Its strategy of making small bolt-on acquisitions has helped in limiting its debt burden, thus resulting in a strong balance sheet. The company continues to build on the success of its other prioritized brands. Bristol Myers’ broad pipeline in oncology, cardiovascular disease, fibrosis, and immunoscience should continue to support future dividend growth. Its increased focus on biological drugs and immuno-oncology has resulted in the creation of powerful products like Eliquis and Opdivo accounting for 57% of total company sales (in 2018).
Bristol Myers is expecting its 2019 GAAP EPS guidance to range in between $3.46 and $3.56. The company is targeting $2.5 billion of run-rate cost synergies to be achieved by 2022. As one of the largest pharma companies, the company stands a good chance to benefit from growing global drug sales and a growing cancer market.
Bristol Myers’ competes with leading global medical companies. It faces competition from generic pharmaceuticals and biosimilars. The company suffers from intense price competition from generic forms of the product. Some of the leading competitors are Abbott Laboratories, Pfizer, Roche Inc., Novartis, Merck & Co, AbbVie, AstraZeneca, etc.
|Ticker||Company||Sector||Industry||Score||Quote||Market Cap||PE||FPE||EPS||Yield||Payout Ratio||Payments||Dividend||Chowder||Ambassador||Achiever||Aristocrat||King||Graph|
|JNJ||Johnson & Johnson||Healthcare||Drug Manufacturers||65||150.13||395.12||26.65||32.28||5.63||2.53||67.50||4||3.80||8.80||NO||YES||YES||YES||1|
|MRK||Merck & Co., Inc.||Healthcare||Drug Manufacturers||63||82.65||210.43||21.52||32.28||3.84||2.95||63.54||4||2.44||5.68||NO||NO||NO||NO||1|
|PFE||Pfizer Inc.||Healthcare||Drug Manufacturers||58||36.51||202.05||12.74||32.28||2.87||4.16||52.96||4||1.52||4.77||NO||NO||NO||NO||1|
|BMY||Bristol Myers Squibb Co.||Healthcare||Drug Manufacturers||41||66.38||155.61||33.05||32.28||2.01||2.71||89.55||4||1.80||0.82||NO||NO||NO||NO||1|
|ABBV||AbbVie Inc||Healthcare||Drug Manufacturers||42||94.05||139.08||43.23||32.28||2.18||5.02||216.51||4||4.72||5.00||NO||NO||YES||NO||1|
|AMGN||Amgen Inc.||Healthcare||Drug Manufacturers||59||223.48||131.81||17.36||32.28||12.88||2.86||49.69||4||6.40||21.53||NO||NO||NO||NO||1|
|GILD||Gilead Sciences Inc.||Healthcare||Drug Manufacturers||36||67.56||85.53||16.02||32.28||4.22||3.73||59.72||4||2.52||3.73||NO||NO||NO||NO||1|
Bristol Myers stands a good chance to strongly benefit from its pipeline of robust drugs. It should also gain from Celgene acquisition which is expected to close by the end of 2019. Growth of prioritized brands, product launches, diverse and innovative pipeline, and strategic business development should support Bristol Myers’ top-line growth.
Is the Celgene acquisition going to bring the performance back up? There is definitely an uptick and lots of volume but the pharma world is complex. Make sure you know why you buy. It’s a pass for me at the moment, while it may be at the bottom ready to profit, it’s not meeting my requirements.
DISCLOSURE: Please note that I may have a position in one or many of the holdings listed. For a complete list of my holdings, please see my Dividend Portfolio.