Should Texas Plavix Lawsuit Prompt Fresh Risk Assessment From Bristol-Myers Squibb (BMY) Investors?

• In November 2025, Texas Attorney General Ken Paxton filed a lawsuit against Bristol-Myers Squibb and Sanofi, alleging the companies failed to disclose that their blood thinner Plavix has reduced efficacy in patients of certain ethnic backgrounds due to genetic factors, potentially violating state consumer protection laws. The lawsuit claims millions of Texans were improperly prescribed the medication, raising concerns about patient safety and substantial financial impact on taxpayer-funded healthcare programs.
• This legal action highlights the growing focus on drug efficacy across diverse populations, underscoring the potential regulatory and reputational risks faced by pharmaceutical manufacturers amid heightened scrutiny over clinical transparency and patient outcomes.
• Let's examine how the Plavix lawsuit introduces new regulatory and reputational risks into Bristol-Myers Squibb's investment outlook.

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Bristol-Myers Squibb Investment Narrative Recap

To be a Bristol-Myers Squibb shareholder, you need to believe in the company's ability to offset major patent cliffs and margin pressures by advancing its diverse pipeline and expanding new product launches. While the Plavix lawsuit in Texas intensifies reputational and regulatory risks, it does not appear to have a material impact on the near-term catalyst: pipeline execution and rapid uptake of new therapies remain the key focus, with patent expiries sustaining the biggest overall business risk.

In this context, the recent discontinuation of the Phase 3 Librexia ACS trial for milvexian, though unrelated to the Plavix litigation, is the most relevant product update because it underscores the challenges of advancing the pipeline and highlights the importance of successful late-stage studies to offset future patent losses and revenue concentration risks. However, the company's ongoing trials and portfolio realignment continue to reflect management's intent to address these headwinds while aiming for resilient earnings growth.

Yet, in contrast, investors should remain aware of the heightened regulatory scrutiny that...

Read the full narrative on Bristol-Myers Squibb (it's free!)

Bristol-Myers Squibb is projected to reach $41.3 billion in revenue and $9.2 billion in earnings by 2028. This outlook assumes an annual revenue decline of 4.7% and an earnings increase of $4.2 billion from the current earnings level of $5.0 billion.

Uncover how Bristol-Myers Squibb's forecasts yield a $53.00 fair value, a 15% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members submitted 11 fair value estimates for BMY, ranging from US$50 to US$118.93 per share. With increased legal scrutiny now a factor, these wide viewpoints highlight why it pays to consider diverse perspectives before acting.

Explore 11 other fair value estimates on Bristol-Myers Squibb - why the stock might be worth over 2x more than the current price!

Build Your Own Bristol-Myers Squibb Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Bristol-Myers Squibb research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Bristol-Myers Squibb research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Bristol-Myers Squibb's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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