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Bristol-Myers Squibb Company (BMY), headquartered in Princeton, New Jersey, is a leading biopharmaceutical company focused on developing treatments for serious diseases such as cancer, inflammatory, immunologic, cardiovascular, and fibrotic diseases. Valued at $83.1 billion by market cap, its strong oncology portfolio includes blockbuster drug Opdivo and other drugs like Revlimid, Pomalyst, Sprycel, Yervoy, and Empliciti. It also has important immunology and cardiovascular drugs like Orencia and Eliquis.
Companies worth $10 billion or more are generally described as “large-cap stocks,” BMY fits right into that category, signifying its substantial size, stability, and dominance in its industry. Bristol-Myers Squibb's prominent position in the pharma industry results from its well-established brand reputation, extensive research and development capabilities, varied product portfolio, and worldwide presence. The company's dedication to innovation and delivering high-quality products has enabled it to develop numerous groundbreaking drugs.
The healthcare services major has fallen 38.3% from its 52-week high of $66.38, which it hit on June 21. Shares of Bristol-Myers are down 21.7% over the past three months, compared to the broader S&P Pharmaceuticals SPDR's (XPH) 6.7% decline over the same time frame.
In the long term, BMY stock has plummeted 38.1% over the past year and dipped 20.2% in 2024. The losses seem much more pronounced than XPH's 4.5% dip on a YTD basis and 5% decline over the past 52 weeks.
To confirm the bearish price trend, BMY has been consistently trading below its 200-day and 50-day moving averages but with some fluctuations.
Shares of Bristol Myers Squibb have been on a downward trend this year due to concerns over sales declines from patent expirations, particularly for its cancer drug Revlimid, which has already seen severe sales declines after going off-patent in 2022. Additionally, its anti-stroke drug, Eliquis, is set to go off-patent in 2027, and the cancer drug Opdivo will lose exclusivity in 2028.
Moreover, BMY stock plummeted 8.5% on April 25 despite announcing better-than-expected Q1 earnings results. On top of that, due to recent acquisitions and collaborations, the company slashed its fiscal 2024 earnings guidance, now expecting between $0.40 and $0.70 per share, down from the previously projected $7.10 to $7.40 per share.
Further, it is worth noting that BMY’s rival, AstraZeneca PLC (AZN), has outperformed BMY. AZN stock has gained 5.4% in the past 52 weeks and surged 17.8% on a YTD basis, significantly outpacing BMY’s negative returns for the same time period.
Given its underperformance, analysts remain cautious about BMY’s prospects. The stock has a consensus rating of “Hold” from the 22 analysts covering it, and the mean price target of $53.17 reflects a 29.8% premium to current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
