Bristol Myers vs Gilead Sciences: Which Biotech Stock Is a Better Bet Now?

Bristol Myers Squibb BMY and Gilead Sciences, Inc. GILD are leading biotechnology companies with broad, diverse portfolios and a global footprint.

BMY boasts a strong portfolio with drugs for oncology, hematology, immunology, cardiovascular, neuroscience and other diseases.

On the other hand, Gilead Sciences is a pioneer in developing treatments for human immunodeficiency virus (HIV). The company’s wide portfolio also includes drugs for liver, hematology/oncology and inflammation/respiratory diseases.

Both biotech giants maintain strong positions in their core businesses and have consistently delivered returns to shareholders. Given this backdrop, selecting one stock over the other can be difficult. We therefore evaluate their fundamentals, growth prospects, challenges and valuation metrics to help make an informed decision.

The Case for GILD

Gilead is a dominant player in the HIV market with key drugs like Biktarvy and Descovy. The company’s flagship drug, Biktarvy (bictegravir 50 mg/emtricitabine 200 mg/tenofovir alafenamide 25 mg, BIC/FTC/TAF), for HIV-1 infection has become the number-one prescribed regimen for both treatment-naïve and switch patients. Biktarvy is the top revenue generator for GILD and accounts for more than 52% share of the treatment market in the United States.

Descovy continues to fuel growth in HIV prevention and has retained more than 45% of the U.S. pre-exposure prophylaxis (PrEP) market.

GILD’s HIV portfolio received a boost with the FDA approval for its twice-yearly injectable HIV-1 capsid inhibitor, lenacapavir, for the prevention of HIV. This groundbreaking injectable therapy, approved under the brand name Yeztugo, marks the first and only twice-yearly PrEP option available in the United States.

The European Commission also granted marketing authorization to HIV prevention drug lenacapavir, under the brand name Yeytuo.

The newly approved Yeztugo for PrEP raked in sales of $39 million in the third quarter. GILD stated that it has achieved its 75% coverage goal for Yeztugo, nearly three months ahead of its target. Gilead remains on track to achieve 90% coverage by the first half of 2026.

Gilead now forecasts 5% HIV revenue growth in 2025, up from 3%, despite a $900 million Medicare Part D headwind. The company is also evaluating a single-tablet regimen of bictegravir and lenacapavir for HIV-1 treatment and recently reported positive data on the same.

The Liver Disease portfolio includes treatments for HCV, chronic hepatitis B virus (HBV) and chronic hepatitis delta virus (HDV). The FDA approval of seladelpar, under the brand name Livdelzi, for the treatment of primary biliary cholangitis has strengthened the liver disease portfolio.

Livdelzi exceeded $100 million in quarterly sales for the first time and is already the first-line treatment for second-line PBC in the United States. It delivered a stellar performance in the quarter, driving growth in the liver disease portfolio. Livdelzi’s momentum was supported by strong commercial execution and several new launches outside the country. According to GILD, Livdelzi is now the market leader in second-line PBC in the United States.

Gilead’s oncology portfolio, comprising the Cell Therapy franchise and breast cancer drug Trodelvy, has diversified its overall business. The breast cancer drug Trodelvy has performed well since its approval.  GILD has multiple ongoing studies looking to expand Trodelvy’s label further.

However, the Cell Therapy franchise, comprising Yescarta and Tecartus, is currently under pressure due to competitive headwinds in the United States and Europe that are expected to continue.

As of Sept. 30, 2025, Gilead’s total debt-to-total-capital ratio was 53.8%. GILD had $9.4 billion in cash, cash equivalents, and marketable debt securities, and $25 billion in long-term debt at the end of the third quarter.

The Case for BMY

BMY’s Growth Portfolio, comprising drugs like Opdivo, Opdivo Qvantig, Reblozyl, Breyanzi, Camzyos and Opdualag, among others, has stabilized its revenue base amid generic competition for its legacy drugs.

Among these, immuno-oncology drug Opdivo is the top revenue generator. Opdivo is approved for various oncology indications around the world, either as monotherapy or in combination with other drugs.  

Opdivo continues to show strong sales momentum, supported by a successful launch in MSI-high colorectal cancer and ongoing growth in first-line non-small cell lung cancer in the United States. International sales remain robust due to demand across multiple indications.

The approval of Opdivo Qvantig (nivolumab and hyaluronidase-nvhy) injection for subcutaneous use has boosted its immuno-oncology portfolio. The initial uptake has been strong and BMY now expects global Opdivo sales, together with Qvantig, to deliver stronger growth than previously guided, with full-year sales projected to rise in the high single-digit to low double-digit range.

The stellar performance of the thalassemia drug Reblozyl has significantly boosted BMY’s top line. BMY is now annualizing over $2 billion in Reblozyl sales. Revenue growth continues to be strong, primarily due to demand in first-line RS-positive and RS-negative settings as well as improved duration of therapy.

Breyanzi sales are now annualizing more than $1 billion, reflecting strong growth in large B-cell lymphoma and expansion in new indications approved last year.

Cardiovascular drug Camzyos sales continue to increase on robust demand.

The approval of Cobenfy (xanomeline and trospium chloride), an oral medication for the treatment of schizophrenia in adults, has diversified the portfolio further. Cobenfy represents the first new pharmacological approach to treating schizophrenia in decades. The initial uptake is encouraging, with sales of $105 million year to date.

While the newer drugs boost sales, generic competition for legacy drugs, which account for a significant share of total revenues, is a major headwind and will impact top-line growth for the time being.

Meanwhile, BMY is on the lookout for acquisitions/ collaborations to broaden its portfolio and drive top-line growth.

BMY recently announced that it will acquire privately held biotechnology company Orbital Therapeutics for $1.5 billion in cash.

The acquisition will add OTX-201, Orbital’s lead RNA immunotherapy preclinical candidate currently in IND-enabling studies, to BMY’s pipeline. OTX-201, a next-generation CAR T-cell therapy, is designed to reprogram cells in vivo with a potential best-in-class profile for autoimmune disease.  BMY will also add Orbital’s proprietary RNA platform to its pipeline.

The company had earlier collaborated with BioNTech for the global co-development and co-commercialization of BioNTech’s investigational bispecific antibody BNT327 across numerous solid tumor types.

Nonetheless, BMY is looking to boost its bottom line through cost-cutting initiatives.

While BMY’s strategy of acquiring companies with promising drugs/candidates is encouraging, this has resulted in colossal debt to finance these acquisitions. As of Sept. 30, 2025, Bristol Myers’ total debt-to-total capital was a whopping 72.5%. The company had cash and equivalents of $15.7 billion and a long-term debt of $44.5 billion as of the same date.

A Look at Estimates: BMY versus GILD

The Zacks Consensus Estimate for BMY’s 2025 sales implies a year-over-year decrease of 0.82%, while that for earnings per share (EPS) suggests a year-over-year increase of 466.96%. EPS estimates for 2025 have moved north over the past 60 days, while those for 2026 have moved south during the same time frame.

BMY’s Estimate Movement

The Zacks Consensus Estimate for GILD’s 2025 sales implies a year-over-year increase of 1.05%, while that for EPS suggests a year-over-year improvement of 76.84%.  EPS estimates for 2025 have moved north in the past 60 days but those for 2026 have moved south during the said time frame.

GILD Estimate Movement

Price Performance and Valuation of BMY and GILD

From a price-performance perspective, GILD has fetched better returns than BMY so far in the year. Shares of GILD have gained 38%, while those of BMY have lost 12.9%. The industry has gained 20.4% in the said period.

From a valuation standpoint, as the biotech industry has very few players with approved drugs, we use the P/E ratio of the large-cap pharma industry to compare these companies. Going by the same, GILD is more expensive than BMY. GILD’s shares currently trade at 15.15X forward earnings, higher than 8.17X for BMY.

GILD and BMY’s attractive dividend yield is a strong positive for investors. However, BMY’s dividend yield of 5.04% is higher than GILD’s 2.48%.

Which Stock Is a Better Pick for Now?

Since both GILD and BMY currently carry a Zacks Rank #3 (Hold), choosing one stock over the other is a complex affair. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Gilead’s efforts to constantly innovate its HIV portfolio should enable it to maintain growth. Approval of better HIV treatments should strengthen the HIV franchise.

BMY’s efforts to revive the top line in the face of generic challenges for key drugs are commendable. However, we believe there is still time before the efforts reap a harvest for the company.

Hence, GILD is the better pick for now despite its pricey valuation, as we believe there is room for growth supported by solid fundamentals, a new HIV prevention drug approval and recent positive estimate revisions.







 

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

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