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Bristol Myers Loses 20.7% in 3 Months: Buy, Sell or Hold the Stock?

  • May 29, 2025

Shares of Bristol Myers BMY have lost 20.7% in the past three months compared with the industry’s decline of 9.6%. The stock has also underperformed the sector and the S&P 500 during this period.

While the year started on a positive note and BMY was faring well (outperforming the market), the stock has been on the downslide for the past couple of months.

BMY Underperforms Industry, Sector & S&P 500 Index

Bristol Myers Loses 20.7% in 3 Months: Buy, Sell or Hold the Stock?


Image Source: Zacks Investment Research

Even though the first-quarter performance was better-than-expected and BMY raised its annual revenue guidance, the stock declined thereafter, probably reflecting broader market concerns and investors’ skepticism on BMY’s growth prospects.

Let us analyze Bristol Myers’ fundamentals in such a scenario to help you deal with the stock going forward:

Generic Competition for BMY’s Top Drugs: A Headwind

Legacy Portfolio is being adversely impacted due to continued generic impact on Revlimid, Pomalyst, Sprycel and Abraxane, as well as the U.S. Medicare Part D redesign effect.

Among these, 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 down 4% in the first quarter due to the impact of Medicare Part D redesign in the United States. The company expects sales to steadily increase in the second half of 2025 due to the elimination of the coverage gap.

BMY is Banking on Newer Drugs to Stabilize Revenue Base

BMY is depending on newer drugs like Opdualag, Reblozyl and Breyanzi to stabilize its revenue base as its legacy drugs face generic competition. Thalassemia drug Reblozyl, for which BMY has a collaboration agreement with Merck MRK, has put up a stellar performance since its approval, driven by strong growth in the first and second-line treatment of myelodysplastic syndromes (MDS)- associated anemia. The drug should contribute significantly in the coming decade.

Revenue growth has been solid for the leading immuno-oncology drug Opdivo, driven primarily by volume growth.

The FDA had earlier granted approval to Opdivo Qvantig (nivolumab and hyaluronidase-nvhy) injection for subcutaneous use. The European Commission (EC) recently approved the perioperative regimen of neoadjuvant Opdivo and chemotherapy followed by surgery and adjuvant Opdivo for the treatment of resectable non-small cell lung cancer at high risk of recurrence in adult patients whose tumors have PD-L1 expression ≥1%.  The company recently received EC approval for the subcutaneous formulation of Opdivo across multiple solid tumor indications.

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