Morningstar Rating

Stock Research and Analysis

by Damien Conover, CFA

Bulls Say

Bristol's growth prospects increase significantly in 2016 when the company passes the majority of patent losses and cancer drug Opdivo likely expands into larger markets.
The key late-stage drug Opdivo holds the potential to radically shift the treatment paradigm in several cancer indications, which should result in peak sales of more than $8 billion annually.
More than half of Bristol's late-stage pipeline focuses on immunology and cancer--indications where the FDA aggressively approves drugs. These drugs also carry strong pricing power. Read more 

Bears Say

Major patent losses will weigh on the company for several years, creating a drag on overall growth.
We believe a large portion of Bristol's current valuation is tied to cancer drug Opdivo, which could have an amplified negative impact on the stock if clinical data are poor or if competitors move into this space more quickly.
Bristol carries a high price/earnings multiple compared with its peer group, with one drug (Opdivo) driving the majority of the valuation. Read more 

Management

Following the relinquishing of the CEO post by Lamberto Andreotti in mid-2015, Chief Operating Officer Giovanni Caforio will take over as CEO. However, Andreotti will continue on as chairman of the board. We view the succession plan as a natural progression   Read more 

Profile

Bristol-Myers Squibb discovers, develops, and markets pharmaceuticals for various indications, such as cardiovascular and infectious diseases, cancer, and immune disorders.  Read more 

New Cancer Drugs: First Movers Will Win 
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