Shares of Bristol Myers BMY continue to lose momentum in 2025. In fact, the stock lost 4.7% in a month against the industry’s gain of 4.8%. Consequently, the stock slipped below its 50-day simple moving average (SMA) on Oct. 2. The stock closed at $45.11 on Oct. 2, 2025, below the 50-day SMA of $45.84.
SMA is commonly used in technical analysis as it irons out short-term fluctuations and enables investors to identify market trends better.
Image Source: Zacks Investment ResearchWhile the year started on a positive note and the stock touched a 52-week high of $63.33 on March 11, it has been on a downward trend thereafter. The stock has underperformed the industry since the end of April and touched a 52-week low of $42.96 on July 31. The stock has also been trading below its 200-day SMA since April 10, 2025, suggesting a bearish sentiment.
Shares of BMY have lost 10.5% in the past six months against the industry’s gain of 17%. Although the recent pipeline updates and collaborations have been encouraging, BMY’s legacy drugs face generic challenges, thereby pulling down the top line.
Image Source: Zacks Investment ResearchThe outlook for 2025 has also disappointed investors.
Let us analyze BMY’s fundamentals in such a scenario to help make a prudent investment choice:
Why Is BMY Facing Challenges?
BMY’s Legacy Portfolio is being adversely impacted by the continued generic erosion of Revlimid, Pomalyst, Sprycel, and Abraxane, as well as the effect of the U.S. Medicare Part D redesign. Revenues from this portfolio were down 17% in the first half of 2025, which is a major cause of concern.
Nonetheless, BMY now expects sales from the legacy portfolio to decline approximately 15% to 17% in 2025, a more moderate rate than previously anticipated, primarily due to Revlimid's strong year-to-date performance.
Blood thinner medicine Eliquis, for which BMY has a worldwide co-development and co-commercialization agreement with pharma giant Pfizer PFE, is the biggest contributor to the top line. Eliquis sales were up 1.5% in the first half.
Can Bristol Myers’ Growth Portfolio Deliver Consistent Gains?
BMY’s Growth Portfolio comprises drugs like Opdivo, Opdivo Qvantig, Orencia, Yervoy, Reblozyl, Camzyos, Breyanzi, Opdualag, Zeposia, Abecma, Sotyku, Krazati and Cobenfy.
Opdivo sales continue to maintain momentum for the company, driven by a strong launch in MSI-high colorectal cancer and continued growth in first-line non-small cell lung cancer.
The FDA had earlier 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.
BMY now expects global Opdivo sales, together with Qvantig, to deliver stronger growth in the mid to high-single-digit range for the full year, driven by strong first-half performance.
Thalassemia drug Reblozyl, for which BMY has a collaboration agreement with Merck MRK, has become an important contributor to the top line. Reblozyl global sales have clocked in more than $1 billion year to date, reflecting continued strength across MDS-associated anemia.
Breyanzi sales skyrocketed 134% % to $607 million in the first half, reflecting strong demand across all indications and higher-than-expected infusions that benefited the second quarter.
Meanwhile, new drug approvals have also boosted this portfolio. The FDA approval of xanomeline and trospium chloride (formerly KarXT), an oral medication for the treatment of schizophrenia in adults, has broadened BMY’s portfolio.
Cobenfy represents the first new pharmacological approach to treating schizophrenia in decades. The initial uptake is encouraging, with sales of $62 million year to date.
These drugs should maintain top-line momentum in the coming quarters.
BMY’s High Debt Ratio Worrisome
While BMY’s strategy of acquiring companies with promising drugs/candidates is encouraging, it has resulted in colossal debt to finance these acquisitions.
As of June 30, 2025, the company had cash and equivalents of $12.6 billion and a long-term debt of $44.5 billion.
Bristol Myers had earlier collaborated with BioNTech BNTX. Both companies have entered into an agreement for the global co-development and co-commercialization of BioNTech’s investigational bispecific antibody BNT327 across numerous solid tumor types.
As a result of this deal, the company now expects adjusted earnings per share (EPS) to be in the range of $6.35-$6.65 (previous guidance: $6.70-$7). The cut in annual earnings guidance can be attributed to an unfavorable (57 cents per share) impact of the acquired IPRD charge due to the BNTX deal.
A Look at BMY’s Valuation
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 7.12X forward earnings, lower than its mean of 8.45X and the large-cap pharma industry’s 15.70X.
Image Source: Zacks Investment ResearchWhat Do BMY’s Estimates Suggest?
The bottom-line estimate for 2025 has moved north to $6.51 from $6.46 in the past 60 days, while that for 2026 has moved south to $6.06 from $6.07 in the same timeframe.
Image Source: Zacks Investment ResearchHow to Play BMY Stock?
BMY’s recent performance is disappointing. Generic competition for key drugs is a major headwind for BMY as of now, as these drugs account for a major chunk of sales. Although the growth portfolio is performing well, these drugs will take some time to offset this steep decline. Considering the recent pipeline setbacks and cut in earnings guidance, we recommend prospective investors to wait and watch for the time being.
While the recent slip below its 50-day simple moving average suggests a bearish sentiment, BMY is one of the largest biotech companies. Such companies are generally considered safe havens for investors in the sector in the long term.
For investors already owning the stock, staying invested would be a prudent move. The company’s attractive dividend yield (5.64%) is a strong reason for existing investors to stay invested.
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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Bristol Myers Squibb Company (BMY): Free Stock Analysis Report Pfizer Inc. (PFE): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report BioNTech SE Sponsored ADR (BNTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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