| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 37.50 | -31 |
| Intrinsic value (DCF) | 23.37 | -57 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 17.20 | -68 |
Bristol-Myers Squibb Company (BMS) is a global biopharmaceutical leader focused on discovering, developing, and commercializing innovative medicines for serious diseases. Headquartered in New York, BMS operates in key therapeutic areas including oncology, hematology, cardiovascular, immunology, and neuroscience. The company's flagship products include Revlimid (multiple myeloma), Eliquis (anticoagulant), Opdivo (immuno-oncology), and Orencia (rheumatoid arthritis). With a diversified portfolio of blockbuster drugs and a strong pipeline, BMS serves patients worldwide through partnerships with healthcare providers, wholesalers, and government agencies. Founded in 1887, the company has a long-standing reputation in the pharmaceutical industry, leveraging its R&D capabilities to address unmet medical needs. BMS maintains a strategic focus on biologics and specialty drugs, positioning itself competitively in high-growth segments of the healthcare market.
Bristol-Myers Squibb presents a mixed investment profile. Strengths include a robust portfolio of high-margin specialty drugs (Eliquis, Opdivo), strong cash flow ($13.86B operating cash flow), and a solid dividend yield (2.44/share). However, risks loom with patent expirations (notably Revlimid facing generics), high debt ($41.36B), and pipeline dependency. The company's low beta (0.4) suggests defensive characteristics, but revenue growth remains pressured (-3% YoY in 2023). Investors must weigh its 5.8% dividend yield against looming biosimilar competition and the need for successful late-stage pipeline conversions.
BMS competes in the high-stakes global pharmaceuticals market with a differentiated position combining deep oncology expertise (Opdivo/Yervoy) and cardiovascular leadership (Eliquis). Its competitive edge stems from: 1) First-mover advantage in immuno-oncology (Opdivo as PD-1 pioneer), though now trailing Merck's Keytruda in market share; 2) Strategic partnerships (Pfizer for Eliquis) maximizing blockbuster potential; 3) CAR-T therapy capabilities post-Celgene acquisition (Breyanzi). However, the company faces intensifying competition in core therapeutic areas - Roche/AstraZeneca in oncology, J&J/Pfizer in immunology. While BMS maintains strong formulary positioning, its late-stage pipeline lacks near-term mega-blockbusters to offset Revlimid declines. Manufacturing complexity in cell therapies (Breyanzi) provides some competitive insulation versus small-molecule rivals. Geographic diversification (45% ex-US revenue) mitigates US pricing pressures but exposes to foreign exchange volatility. The $6B R&D spend (13% of revenue) trails some peers, potentially limiting future innovation pace.