BMY - Embedded Expectations Analysis - 2021 10 15
Bristol-Myers Squibb Company (BMY:USA) currently trades at a historical low relative to UAFRS-based (Uniform) earnings, with a 5.4x Uniform P/E. At these levels, the market is pricing in bearish expectations for the firm, and management may haveconcerns about growth targets, cell therapy demand, and vector shortages.Specifically, management may lack confidence in their ability to expand their immunology franchise, achieve revenue growth targets, and continue strong commercial performance. In addition, they may lack confidence in their ability to sustain share gains for Opdivo plus chemo in first-line gastric cancer with CheckMate-649 and they may have concerns about the progress of Factor Xla studies. Furthermore, they may have concerns about the impact of vector shortages on multiple cell therapy products, the sustainability of demand across both Breyanzi and Abecma, and the results of the Phase III trial for mavacamten competitor molecules. Additionally, management may lack confidence in their ability to increase in-person engagement and continue to build new trials in gastric. Finally, they may be
overstating the quality of their Phase III top line data in second-line transplant-eligible
large B-cell lymphoma, the potential of their patents for Eliquis, and the capabilities of
their cell therapy launches.
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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