Bristol-Myers Squibb Company (NYSE: BMY)

Bristol-Myers Squibb Company (NYSE: BMY) is a global biopharmaceutical company. It is engaged in the discovery, development and delivery of transformational medicines for patients facing serious diseases in areas: oncology, hematology, immunology, cardiovascular, neuroscience and other areas. Its platforms comprise chemically synthesized or small molecule drugs, including protein degraders; drugs produced from biological processes, called biologics; ADCs, CAR-T cell therapies, and radiopharmaceutical therapeutics. 

As per previous US Diversified Opportunities Report published on ‘BMY’ on Jul 03, 2025, Kalkine provided an ‘Buy’ stance on the stock at USD 47.63 based on fundamental analysis and the stock price has now moved up by ~ 17.28% since then and attained resistance 1 and resistance 2.

Noted below are the details of support and resistance levels provided in our previous report:

Rationale:

• Earnings Quality Diluted by One-Off Adjustments: Non-GAAP EPS of USD 1.63 declined 9% YoY, while reported earnings remain materially influenced by elevated Acquired IPRD charges (USD 633 million) and licensing income, raising concerns that current earnings power overstates sustainable, recurring profitability.
• Structural Decline in the Legacy Portfolio Offsets Growth Momentum: Legacy Portfolio revenues fell 12% YoY, with steep declines in Revlimid (-59% YoY), Pomalyst/Imnovid (-25%), and Sprycel (-59%), underscoring ongoing patent-expiry pressure that continues to erode cash-generating franchises and caps valuation re-rating potential.
• Margin Compression Reflects Less Favorable Product Mix: GAAP gross margin declined to 71.9% from 75.1% YoY, driven by mix shifts away from ultra-high-margin legacy products, suggesting that even with Growth Portfolio strength, structural margin normalization may persist, limiting upside to earnings multiples.
• Rising R&D Intensity and Acquisition Dependence Increase Execution Risk: R&D expenses rose 6% YoY (GAAP), partly due to acquisition-related charges, while growth increasingly depends on pipeline execution and business development; this elevates integration, clinical, and capital allocation risks, which may not be fully discounted in the current share price.

Valuation (Using Price/Earnings Per Share Multiple)

Share Price Chart 

Conclusion

BMY’s recent performance highlights weakening earnings quality, with non-GAAP EPS declining 9% YoY and profitability increasingly reliant on one-off licensing income amid elevated Acquired IPRD charges of USD 633 million, which may overstate sustainable earnings power. At the same time, structural erosion in the Legacy Portfolio, including sharp revenue declines in Revlimid, Pomalyst/Imnovid, and Sprycel, continues to offset Growth Portfolio momentum, while gross margin compression to 71.9% from 75.1% reflects an unfavorable product mix shift. Rising R&D intensity and acquisition dependence further elevate execution and integration risks

Based on the notional gains, valuation downside and price action stance, a "Sell" recommendation Bristol-Myers Squibb Company (NYSE: BMY) has been given at the closing market price of USD 55.86 as on 09 January 2026.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 09 January 2026. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.