Stock Analysis & Valuation Bristol-Myers Squibb Company (BRM.DE)

• Previous Close: €46.31
• Sector Valuation Confidence Level: High

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	38.40	-17
Intrinsic value (DCF)	22.98	-50
Graham-Dodd Method		n/a
Graham Formula		n/a

Strategic Investment Analysis

Company Overview

Bristol-Myers Squibb Company (BRM.DE) is a global biopharmaceutical leader specializing in the discovery, development, and commercialization of innovative medicines for serious diseases. Headquartered in New York, the company operates in key therapeutic areas including hematology, oncology, cardiovascular, immunology, fibrotic diseases, neuroscience, and COVID-19. Its flagship products include Revlimid for multiple myeloma, Eliquis for stroke prevention, and Opdivo for cancer immunotherapy. With a diversified portfolio spanning blockbuster drugs like Orencia, Sprycel, and Yervoy, Bristol-Myers Squibb serves a broad customer base, including wholesalers, hospitals, and government agencies. Founded in 1887, the company has a strong legacy in pharmaceutical innovation and maintains a robust pipeline targeting unmet medical needs. Despite recent financial challenges, its strategic focus on high-growth therapeutic segments and global market penetration positions it as a key player in the drug manufacturing sector.

Investment Summary

Bristol-Myers Squibb presents a mixed investment profile. On the positive side, the company boasts a diversified portfolio of high-margin drugs, strong cash flow generation (€15.19B operating cash flow in FY 2024), and a solid dividend yield (€2.30 per share). Its low beta (0.4) suggests relative stability compared to the broader market. However, significant risks include a substantial net loss (€-8.95B), high total debt (€51.2B), and pipeline dependency amid patent expirations. The company’s ability to offset Revlimid’s revenue decline with newer therapies like Breyanzi and Reblozyl will be critical. Investors should weigh its strong market position against financial leverage and competitive pressures.

Competitive Analysis

Bristol-Myers Squibb competes in the global pharmaceutical market with a focus on specialty drugs and biologics. Its competitive advantage lies in its oncology and immunology franchises, particularly Opdivo (a leading PD-1 inhibitor) and Eliquis (a top-selling anticoagulant). The company’s scale and R&D capabilities enable it to sustain a robust pipeline, though it faces stiff competition in key areas. In oncology, Merck’s Keytruda outsells Opdivo, while in cardiovascular, Eliquis competes with J&J’s Xarelto. Bristol-Myers’ acquisition of Celgene bolstered its hematology portfolio (e.g., Revlimid), but generics now erode this revenue. Its immunology drugs (Orencia, Zeposia) compete with AbbVie’s Humira and newer IL-23 inhibitors. The company’s late-stage pipeline, including cell therapies like Breyanzi, could differentiate it in niche markets. However, its debt load limits agility compared to peers with stronger balance sheets. Strategic partnerships (e.g., with Pfizer for Eliquis) and cost-cutting initiatives are key to maintaining margins.

Major Competitors

• Merck & Co., Inc. (MRK.DE): Merck is a dominant player in oncology with Keytruda, the leading PD-1 inhibitor, outselling Bristol-Myers’ Opdivo. Its vaccine segment (e.g., Gardasil) and animal health business provide diversification. However, Merck lacks Bristol-Myers’ depth in hematology and faces its own patent cliffs.
• Pfizer Inc. (PFE): Pfizer co-markets Eliquis with Bristol-Myers, but its broader portfolio includes vaccines (Comirnaty) and inflammatory drugs (Xeljanz). Post-COVID, Pfizer’s revenue is more volatile. Its recent acquisitions (e.g., Seagen) strengthen oncology, posing direct competition to Bristol-Myers.
• AbbVie Inc. (ABBV): AbbVie leads in immunology with Humira and newer drugs like Skyrizi. Its hematology-oncology segment (Imbruvica, Venclexta) competes with Bristol-Myers’ Revlimid and Pomalyst. AbbVie’s stronger profitability and lower debt are advantages, but it relies heavily on Humira’s successor products.
• Novartis AG (NVS): Novartis has a broad portfolio including innovative drugs (e.g., Cosentyx for psoriasis) and generics (Sandoz). Its CAR-T therapy Kymriah competes with Bristol-Myers’ Breyanzi. Novartis’ strong pipeline and financial flexibility make it a formidable competitor, particularly in Europe and emerging markets.
• AstraZeneca PLC (AZN): AstraZeneca excels in oncology (Tagrisso, Imfinzi) and cardiovascular (Farxiga). Its COVID-19 vaccine diversified revenue but with lower margins. AstraZeneca’s aggressive R&D spending and emerging-market presence contrast with Bristol-Myers’ focus on high-income regions.