Will Opdivo and Opdivo Qvantig Drive BMY's Top-Line Growth?

Bristol Myers (BMY) has a strong oncology portfolio comprising blockbuster immune-oncology drug Opdivo, Opdivo Qvantig, and Yervoy, among others.

Opdivo is a key drug in BMY’s Growth Portfolio that is approved for several oncology indications. Consistent label expansion of the drug has enabled it to maintain momentum.

Opdivo sales in the United States are being driven by a strong launch in MSI-high colorectal cancer and continued growth in first-line non-small cell lung cancer, while sales outside the country are being bolstered by volume growth.

In May 2025, the European Commission (“EC”) approved the subcutaneous formulation of Opdivo (nivolumab) across multiple solid tumor indications. The EC had earlier approved a perioperative regimen of neoadjuvant Opdivo and chemotherapy followed by adjuvant Opdivo for resectable, high-risk non-small cell lung cancer with PD-L1 Expression ≥1%.

The regulatory body also granted approval to Opdivo Qvantig (nivolumab and hyaluronidase-nvhy) injection for subcutaneous use. The initial uptake has been strong and the launch is going well in the United States across all indicated tumor types. Opdivo Qvantig received a permanent J-Code on July 1, which will support additional conversion as reimbursement improves.

The company now expects global Opdivo sales, together with Qvantig, to grow in the mid to high single-digit range in 2025, driven by strong performance in the first half.

BMY depends on the label expansion of approved drugs and approval of new drugs to stabilize its revenue base, as its legacy drugs (Revlimid, Pomalyst, Sprycel and Abraxane) face generic competition.

Competition for BMY’s Oncology Drugs

While the label expansion of Opdivo is positive, the immuno-oncology space is dominated by pharma giant Merck’s (MRK) blockbuster drug Keytruda (pembrolizumab), along with Roche’s (RHHBY) Tecentriq.

Keytruda is approved for several types of cancer and alone accounts for around 50% of MRK’s pharmaceutical sales. Merck is currently working on different strategies to drive long-term growth of Keytruda.

Roche’s immuno-oncology Tecentriq is also approved for various oncology indications — early-stage (adjuvant) NSCLC, small cell lung cancer, hepatocellular carcinoma and breast cancer, among others. In addition to intravenous infusion, Roche has also obtained approval for Tecentriq as a subcutaneous injection.

BMY’s Price Performance, Valuation and Estimates

Shares of Bristol Myers have lost 13.6% year to date against the industry’s growth of 4.3%.

From a valuation standpoint, BMY is trading at a discount to the large-cap pharma industry. Going by the price/earnings ratio, BMY’s shares currently trade at 7.60X forward earnings, lower than its mean of 8.47X and the large-cap pharma industry’s 14.78X.

The bottom-line estimate for 2025 has moved up to $6.50 from $6.41 in the past 30 days, while that for 2026 has moved south to $6.07 from $6.08 in the same timeframe.

BMY currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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