Bristol-Myers Squibb Co.

Overview Key strengths Key risks A market-leading position in the high-margin, patent-protected market for prescription drugs, which is relatively insensitive to the business cycle. Elevated risk of mergers and acquisitions (M&A) that could harm credit metrics given prospects for flat to declining revenue in 2025-2028, stemming from the Inflation Reduction Act (IRA) legislation and the loss of exclusivity (LOE) on key products. Nine blockbuster drugs in 2023 with franchises in oncology and hematology, immunology, cardiovascular disease, and neuroscience. Product concentration is higher than most peers, with the top three products accounting for about 61% of 2023 revenue (27%, 20%, and 14%, respectively). Long-standing commitment to a relatively conservative financial policy, with leverage expected to generally remain in the 2.0x-2.5x range,

...Bristol-Myers Squibb Co. (BMY) is a leading branded pharmaceutical company with good positions in several therapeutic areas. BMY's business benefits from the same high barriers to entry, good pricing power, and strong profitability of other rated Big Pharma peers. The company's scale (2023 revenue of about $45 billion), profitability (EBITDA margins of about 47%), level of investment in research and development (R&D; about 21% of revenue), and substantial free cash flow generation even after dividends that enables the company to reduce...

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