Stock Analysis & Valuation Bristol-Myers Squibb Company (BMY.SW)

• Previous Close: CHF42.54
• Sector Valuation Confidence Level: High

Valuation method	Value, CHF	Upside, %
Artificial intelligence (AI)	n/a	n/a
Intrinsic value (DCF)		n/a
Graham-Dodd Method		n/a
Graham Formula	18.20	-57

Strategic Investment Analysis

Company Overview

Bristol-Myers Squibb (BMY) is a global biopharmaceutical leader specializing in innovative therapies for hematology, oncology, cardiovascular, immunology, fibrotic, and neuroscience diseases. Headquartered in New York, the company has a robust portfolio including blockbuster drugs like Revlimid (multiple myeloma), Eliquis (stroke prevention), and Opdivo (cancer immunotherapy). With a market cap exceeding $73 billion, BMY operates in a highly competitive pharmaceutical sector, leveraging its R&D capabilities and strategic partnerships to maintain growth. The company distributes its products through wholesalers, hospitals, and government agencies worldwide. Founded in 1887, BMY has a long-standing reputation for delivering life-saving treatments, supported by a strong pipeline and a focus on high-need therapeutic areas. Its diversified product lineup and global reach position it as a key player in the healthcare industry.

Investment Summary

Bristol-Myers Squibb presents a compelling investment case with its diversified portfolio of high-margin drugs, strong cash flow ($13.86B operating cash flow in 2023), and a solid dividend yield (~3.5%). However, risks include patent expirations (notably Revlimid), high debt levels ($41.46B), and pipeline dependency. The company's low beta (0.43) suggests defensive characteristics, but growth relies heavily on successful clinical trials and acquisitions. Investors should weigh its stable revenue ($45B in 2023) against looming biosimilar competition.

Competitive Analysis

Bristol-Myers Squibb competes in the high-stakes global pharmaceutical market, where differentiation hinges on R&D innovation, patent exclusivity, and commercialization scale. Its competitive advantages include a strong oncology franchise (Opdivo, Yervoy), leadership in cardiovascular drugs (Eliquis), and a deep clinical pipeline. However, BMY faces intensifying biosimilar pressure, particularly with Revlimid's loss of exclusivity. The company's mid-size scale compared to mega-cap peers limits bargaining power with payers but allows for sharper therapeutic focus. Its $7.4B acquisition of Celgene in 2019 expanded its hematology/oncology footprint but also increased debt. BMY's future positioning depends on its ability to replenish its pipeline through internal development (e.g., Breyanzi in cell therapy) and targeted acquisitions while managing pricing pressures in key markets like the US and Europe.

Major Competitors

• Pfizer Inc. (PFE): Pfizer's vast scale ($100B+ revenue) and COVID-19 vaccine windfall give it superior financial flexibility versus BMY. However, its post-pandemic revenue cliff and thinner late-stage pipeline make it more vulnerable than BMY's diversified portfolio. Pfizer's broader vaccine/infectious disease focus creates less direct overlap with BMY's core oncology/immunology strengths.
• Merck & Co. (MRK): Merck's Keytruda (cancer immunotherapy) directly competes with BMY's Opdivo, holding superior market share. Merck's stronger balance sheet and animal health division provide diversification BMY lacks. However, BMY has broader hematology expertise (from Celgene) and a more advanced cell therapy pipeline.
• Novartis AG (NVS): Novartis's diversified business (including generics division Sandoz) provides stability BMY lacks, but with lower margins. Its gene therapy leadership (Zolgensma) and radioligand platform are unique strengths. BMY maintains an edge in hematology and immunology, with more concentrated oncology focus.
• AstraZeneca PLC (AZN): AstraZeneca's strong emerging markets presence and respiratory franchise differ from BMY's US/oncology focus. Both companies face patent cliffs, but AZN's recent pipeline successes (e.g., Tagrisso, Enhertu) give it better near-term growth prospects than BMY's more pressured portfolio.
• Johnson & Johnson (JNJ): JNJ's pharmaceutical division competes with BMY in immunology (Stelara vs Orencia) and oncology, but its medical device and consumer health businesses provide unmatched diversification. JNJ's larger scale supports higher R&D spending, though BMY has greater focus on innovative biologics.