Assessing the Viability of Investing in Bristol Myers Squibb Stock in the Current Market Climate
The dreaded patent cliffs
Last year, Bristol Myers' revenue declined by 2% year over year to $45 billion. Its adjusted earnings per share also dropped 2%, landing at $7.51. The drugmaker is still dealing with the loss of exclusivity for cancer treatment Revlimid, but the problem runs even deeper. Bristol Myers will face other significant patent cliffs by the end of the decade.
Innovation is key
The best solution to patent cliffs is to develop new drugs. That's what Bristol Myers has done in recent years. The company's portfolio of newer medicines contains 10 products. The latest to earn the green light is Augtyro, a cancer drug Bristol Myers launched late last year in the U.S.
Dividends matter
Bristol Myers boasts a solid dividend program that likely isn't in danger despite the company's recent subpar financial results. The drugmaker has increased its payouts by a robust 46% in the past five years despite company-specific headwinds and the economic troubles and disruptions most of the world has faced in that time.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.