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BMY - Embedded Expectations Analysis - 2021 07 06

Bristol-Myers Squibb Company (BMY:USA) currently trades below historical averages relative to UAFRS-based (Uniform) earnings, with a 6.1x Uniform P/E. At these levels, the market is pricing in bearish expectations for the firm, and management may have concerns about their growth opportunities, new product launches, and Opdivo and Yervoy demand

Specifically, management may be exaggerating their future growth opportunities, the strength of their balance sheet, and the success of new product launches. Moreover, they may have concerns about trial efficacy and utilization readouts, the potential of their combinational therapies, and the demand for new Opdivo and Yervoy applications. Additionally, management may lack confidence in their ability to sustain strong sales growth, return cash to shareholders through both dividends and share repurchases, and increase patient starts. Finally, they may have concerns about potential changes to Medicare Part D reimbursement, their portfolio diversification, and their partnership network
Bristol-Myers Squibb Co.

Bristol-Myers Squibb is engaged in the discovery, development, licensing, manufacturing, marketing, distribution and sale of biopharmaceutical products. The company's products are sold worldwide, primarily to wholesalers, specialty distributors, retail pharmacies, hospitals, government entities and the medical profession. The company manufactures products in the United States and Puerto Rico and has manufacturing operations in two foreign countries. The company has products in the following therapeutic classes: hematology, oncology, cardiovascular and immunology. The company's pharmaceutical products include chemically-synthesized or small molecule drugs and products produced from biological processes, called biologics.

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