--- title: "Opinion: Bristol Myers Squibb Is a Buy -- but the Real Reason Why Might Surprise Investors" type: "News" locale: "en" url: "https://longbridge.com/en/news/297405305.md" description: "The article argues that Bristol Myers Squibb (BMY) is a buy for long-term investors, despite the upcoming patent cliff for Eliquis in 2028. It dismisses merger rumors with AstraZeneca as unlikely and advises focusing on fundamentals rather than M&A speculation. BMY's strong pipeline of new drugs like Camzyos and Opdualag aims to offset revenue losses. With a low P/E ratio compared to peers and a high dividend yield of 3.7%, the stock presents value for patient investors seeking exposure to a historically resilient pharmaceutical company." datetime: "2026-08-29T14:45:13.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/297405305.md) - [en](https://longbridge.com/en/news/297405305.md) - [zh-HK](https://longbridge.com/zh-HK/news/297405305.md) generator: "portal-rs" --- # Opinion: Bristol Myers Squibb Is a Buy -- but the Real Reason Why Might Surprise Investors **Bristol Myers Squibb** (BMY -0.55%) was created via the combination of companies founded in 1858 and 1887. It has a proven history of survival in the highly competitive and innovative pharmaceutical industry. That's important to remember as investors examine the upcoming patent cliff for cardiovascular drug Eliquis in 2028. It will be a big revenue hit, but patent expirations are just a normal part of the drug business. Here's why Bristol Myers Squibb is still worth buying, and it has nothing to do with the big rumor. ## A merger is unlikely The big story around Bristol Myers Squibb over the past month or so was the rumor that **AstraZeneca** (AZN -1.11%) was in discussions to buy it. Bolt-on deals are pretty common in the pharmaceutical space, but this wouldn't be a bolt-on; it would be a mega merger. Industry watchers don't see a high likelihood that it will get done. In the grand scheme of investing, trying to invest around mergers and acquisitions isn't the best long-term plan, anyway. ![A scientist working with a flask and beaker.](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84ODQwNzMvMjNfMTFfMTMtYS1zY2llbnRpc3Qtd29ya2luZy13aXRoLWEtZmxhc2stYW5kLWJlYWtlci1fZ2V0dHlpbWFnZXMtMTQxMzYwNjAxNS0xMjAxeDYzMy02NWQ0YmU2LmpwZyZ3PTM4NDA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) Image source: Getty Images. Focusing on the fundamentals is a much better idea. But, as noted, Bristol Myers Squibb's core story isn't great right now. One of its most important products, Eliquis, is about to lose patent protection. When that happens, competitors can sell generic versions of Eliquis, and Eliquis revenues are likely to decline sharply. It seems like a mistake to buy into that story. But patent expirations are normal for a drug company like Bristol Myers Squibb. It isn't waiting around and hoping for a miracle; it has been working for years to develop new drugs to replace the revenues lost to patent expirations. It is already seeing solid results from new drugs like Camzyos, Opdualag, Breyanzi, and Reblozyl. And it has more new drug candidates in the pipeline, as well. In fact, the company's CEO has been talking up the depth of the pipeline, which he believes is the most impressive in a decade. Expand ![Bristol Myers Squibb Stock Quote](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL0JNWS5wbmcmdz0xMjg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) ## NYSE: BMY Bristol Myers Squibb Premium Feature Moneyball Superscore 66/100 Today's Change (-0.55%) $-0.37 Current Price $66.58 ### Key Data Points Market Cap $136BMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary. Day's Range $66.19 - $66.84 52wk Range $42.52 - $68.64 Volume 5.5M Avg Vol 12.1M Gross Margin 66.64% Dividend Yield 3.77% ## Don't buy Bristol Myers Squibb for the short term Shares of Bristol Myers Squibb are up materially over the past year, but still below the peak levels of late 2022. So the stock isn't cheap, but neither does it look particularly expensive. Notably, the stock's 15x price-to-earnings ratio is well below the industry average of 26x. And while new drug developments don't always line up with patent expirations, the long-term history for Bristol Myers Squibb suggests it will eventually find new and innovative drugs to sell. In fact, it is already doing just that, even though it will likely need more successes to offset Eliquis. If you are a long-term investor, you could do a lot worse than taking a risk on a historically successful healthcare stock like Bristol Myers Squibb while collecting its well-above market 3.7% yield. And if the company does get bought by AstraZeneca, well, that could just be icing on the cake. ### Related Stocks - [BMY.US](https://longbridge.com/en/quote/BMY.US.md) - [AZN.UK](https://longbridge.com/en/quote/AZN.UK.md) - [AZN.US](https://longbridge.com/en/quote/AZN.US.md) - [CELG.RT.US](https://longbridge.com/en/quote/CELG.RT.US.md) ## Related News & Research - [Bristol Myers presents results for EXPLORER-LTE cohort of MAVA-LTE study](https://longbridge.com/en/news/297453992.md) - [RBC Capital Sticks to Its Hold Rating for Bristol-Myers Squibb (BMY)](https://longbridge.com/en/news/297724530.md) - [232,697 Shares in Bristol Myers Squibb Company $BMY Acquired by Beacon Pointe Advisors LLC](https://longbridge.com/en/news/297394340.md) - [Archer Investment Corp Takes $1.40 Million Position in Bristol Myers Squibb Company $BMY](https://longbridge.com/en/news/297393102.md) - [Bristol Myers ends blood cancer drug deal with cell therapy maker Cellares](https://longbridge.com/en/news/296941366.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**