How Are Bristol-Myers Squibb’s Revenues, Expenses & Profits Likely To Change Over The Next Five Years?

by Trefis Team
Bristol-Myers Squibb
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We have created an interactive dashboard on how Bristol-Myers Squibb’s (NYSE:BMY) revenues, expenses, and profits are expected to change over the next five years. You can adjust the expected segment-wise revenue and margin forecasts, and see its impact on the profitability, and earnings.

Expected Change In Revenues By Division Between 2017 and 2022
  • We do not expect significant changes in revenues in 2022, as compared to 2017, as the growth in the company’s oncology segment will likely be offset by a decline in virology, immunology, and mature drugs sales. Note that the patents for many drugs within these segments have expired, and they now face – or will face – biosimilar competition.

Expected Change In Operating Expenses By Division Between 2017 and 2022

  • Operating expenses are expected to decline slightly by around $400 million, as higher expenses at oncology will be offset by other segments, that will face revenue decline during 2017-2022.

Expected Change In Gross Profits By Division Between 2017 and 2022
  • The gross profit for the company is expected to increase slightly by $170 million. Note that the increase in gross profits at the oncology segment is forecast at over $2.5 billion, which will be offset by declines at the virology, immunology, and mature drugs segments.

Gross Profit Calculation
  • We estimate BMY’s pharmaceuticals gross profit margin will remain stable at 73% over the next five years.
  • This should translate into gross profits of over $15 billion for the company in the coming years.
  • Gross profits will likely remain in the range of $15-16 billion, as there is no significant change expected in revenues.

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

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