What Are Bristol Myers Squibb’s Key Sources of Revenue?

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Bristol Myers Squibb

Bristol-Myers Squibb’s (NYSE:BMY) key sources of revenues are oncology drugs, cardiovascular drugs, virology drugs, immunology drugs, and the company’s mature drugs portfolio. Oncology drugs accounts for close to 40% of the company’s overall revenues.

We have created an interactive dashboard that shows BMY’s key revenue sources, and the expected 2018 performance. You can adjust the revenues and multiple to see the impact on earnings.

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Opdivo Is The Key Drug Within Oncology Segment

Within oncology, company’s key blockbuster drug is Opdivo, with sales of around $5 billion, or 25% of the company’s overall revenues. Opdivo has been a tremendous success story for BMY. The key FDA approvals for the drugs were:

  • 2014: Advanced Melanoma
  • 2015: Lung Cancer, Metastatic Renal Cell Carcinoma
  • 2016: Metastatic Melanoma, Hodgkin Lymphoma, Head and Neck Cancer
  • 2017: Metastatic Urothelial Carcinoma

The drug is likely to continue its growth trajectory given that it is being tested in other combinations for different therapeutic areas. Also, Opdivo’s patent is protected until 2026-2027 and it is unlikely to see any significant drop in sales until it approaches patent expiry.

Expect 2018 Oncology Revenues To Grow

  • We estimate BMY’s oncology drugs sales to grow in 2018 to around $9.3 billion led by a ramp up in Opdivo sales.
  • We also believe that BMY’s Eliquis in cardiovascular segment will continue to grow in the near term, as it is gaining market share. We estimate the segment’s sales to be around $5.2 billion in 2018.

Estimate 2018 Earnings Per Share To Be ~$3.19

We currently estimate the EPS in 2018 to be $3.19, and our current price estimate for BMY is $60.

Our price estimate of $60 for Bristol Myers Squibb implies a discount of over 10% to the market.

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