The past five years have been challenging for Bristol Myers Squibb (BMY 0.13%). The company lost patent exclusivity for some key products, including one that was once its best-selling medicine, cancer drug Revlimid. This and other challenges have led to subpar financial results and terrible stock market performance.
Could the pharmaceutical giant turn things around next year? Let's find out whether Bristol Myers Squibb is a buy, sell, or hold heading into 2026.
More potential headwinds on the horizon
By the end of the decade, Bristol Myers Squibb will experience patent cliffs for at least two other products. The first is Eliquis, an anticoagulant that it co-markets with Pfizer. The second is Opdivo, a medicine approved to treat many different types of cancer.
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Through the first nine months of 2025, Eliquis racked up $11 billion in sales -- growing 8% year over year -- while Opdivo's revenue jumped by 8% to $7.4 billion. The combined $18.4 billion between them accounted for more than half of Bristol Myers Squibb's $35.7 billion in revenue through Sept. 30, which actually declined 1% compared to the year-ago period.
In other words, Bristol Myers Squibb's top line is already moving in the wrong direction even before these major patent cliffs, and things might only get worse once they land. That hardly paints a bright picture for the company's outlook through the next few years.
Bristol Myers Squibb's plan to turn things around
The good news is that Bristol Myers Squibb has made several moves to address these obstacles. One of the most important is a new, subcutaneous version of Opdivo -- Opdivo Qvantig -- that earned approval late last year. Why would patients and physicians choose the new version?
Because the old one is administered intravenously, it can only be given in healthcare facilities with trained staff and infusion centers. The newer version is far more flexible and can even be given in home settings. It's also faster to administer -- a few minutes versus the regular half an hour or so for the original formulation.
So, Opdivo Qvantig is more convenient and flexible, yet maintains comparable efficacy. It should take over many of the original version's indications and mitigate losses once that one loses patent exclusivity and biosimilars enter the market. The bottom line: Bristol Myers Squibb's Opdivo franchise is safe, for now. That still leaves Eliquis needing to be replaced.
NYSE: BMY
Key Data Points
Bristol Myers Squibb likely won't be able to do so with a single product, but in recent years, it has launched several new medicines. Combined, these drugs might be able to do it -- or at least get close. Two of these products, cancer drugs Opdualag and Breyanzi, are on track to exceed $1 billion in sales for fiscal 2025. Another, Reblozyl, which is indicated to treat anemia in beta-thalassemia patients, is already in blockbuster territory for the year.
Bristol Myers Squibb won't stop there. The company's extensive pipeline should enable it to launch more drugs that will help drive top-line growth, particularly in its most important therapeutic area, oncology. The company has several dozen ongoing clinical trials for cancer products, which are expected to result in numerous new approvals and label expansions.
And that's not including Bristol Myers Squibb's work in other therapeutic areas, such as immunology and neuroscience. The Eliquis patent cliff will be massive, but the company is prepping itself and should be ready for it. That should give investors some confidence that it can overcome this challenge.
What's your investing style?
Bristol Myers Squibb is also a solid dividend stock. The company's forward yield tops 4.6%, which compares favorably to the S&P 500's average of 1.2%. It has increased its payouts by nearly 66% over the past decade and boasts a reasonable cash payout ratio of almost 35%, which provides it with ample room to raise its dividend further without compromising other activities, such as investments in R&D. So, what's the verdict on Bristol Myers Squibb? The company's efforts may not yield immediate results.
Developing new products will take time. Even some of the newer ones already on the market still need a few years to fill the gap that older products will create once their patent exclusivity expires. Bristol Myers Squibb isn't a high-growth stock, but the company's slow and steady approach -- as well as its solid dividend program -- should appeal to more conservative, dividend-seeking investors. Those people should strongly consider the stock in 2026.
