Update shared on04 Sep 2025
Analysts maintained a cautious outlook on Bristol-Myers Squibb due to muted Cobenfy prescription trends and pipeline execution concerns, partially offset by optimism for upcoming Alzheimer’s data and future optionality, resulting in the consensus price target remaining steady at $53.00.
Analyst Commentary
- Bearish analysts point to recent moderation in Cobenfy prescriptions for schizophrenia and maintain low growth expectations for this indication in the second half of 2025.
- Upcoming Phase 3 Cobenfy data in Alzheimer’s disease psychosis represents a near-term stock catalyst, driving some optimism around potential label expansion.
- Downgrades and reduced price targets reflect tempered outlooks due to concerns regarding pipeline execution and modest near-term revenue growth.
- Bullish analysts highlight indirect positives from Bristol Myers' extensive market build-out, providing leverage for partnered novel therapies in cardiology and expanding future optionality.
- Pipeline readouts and collaboration momentum are seen as potential long-term drivers, but current sentiment is weighed down by muted prescription trends and conservative estimates for upcoming launches.
What's in the News
- The Trump administration may imminently impose new tariffs on pharmaceutical imports, potentially impacting large-cap drugmakers such as Bristol Myers; the announcement is expected in the coming weeks (Reuters, 2025-08-13).
- Discussions are underway between the U.S. government and drugmakers on strategies to increase medicine prices abroad, aiming to reduce drug costs domestically through "most favored nation" pricing policies (Reuters, 2025-08-08).
- The White House is considering a new plan to apply a 1%-5% fee on overall patent value, which would significantly increase costs for patent holders like Bristol Myers and reshape the patent landscape (WSJ, 2025-07-28).
- President Trump indicated pharmaceutical tariffs are likely by August 1, initially at a low rate, with a substantial increase after a one-year adjustment period, affecting major firms including Bristol Myers (Bloomberg, 2025-07-16).
- The administration is exploring tighter regulations and financial disincentives for direct-to-consumer pharmaceutical advertising, including stricter disclosure requirements and potential elimination of tax deductibility, which could drive up advertising costs for Bristol Myers (Bloomberg, 2025-06-17).
Valuation Changes
Summary of Valuation Changes for Bristol-Myers Squibb
- The Consensus Analyst Price Target remained effectively unchanged, at $53.00.
- The Consensus Revenue Growth forecasts for Bristol-Myers Squibb remained effectively unchanged, at -4.7% per annum.
- The Net Profit Margin for Bristol-Myers Squibb remained effectively unchanged, at 22.38%.
Disclaimer
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