Global biopharmaceutical company Bristol-Myers Squibb Company (BMY) recently received the European Commission’s approval regarding the fixed-dose combination of Opdualag (nivolumab and relatlimab) for the first-line treatment of advanced (unresectable or metastatic) melanoma in adults and adolescents. Opdualag is expected to be a game-changer in the European oncology field.
Moreover, in August, BMY completed its acquisition of Turning Point Therapeutics, Inc., in an all-cash transaction. Elizabeth Mily, BMY’s Executive Vice President, Strategy & Business Development, said, “Turning Point has distinguished itself in the field of precision oncology, and this acquisition will further strengthen our leading oncology franchise.”
BMY’s forward non-GAAP P/E of 9.59x is 47.5% lower than the industry average of 18.25x. Its forward EV/EBITDA of 8.83x is 30.7% lower than the industry average of 12.73x. Its forward Price/Sales of 3.33x is 24.1% lower than the industry average of 4.40x, while its forward Price/Cash Flow of 9.76x is 37.8% lower than the industry average of 15.68x.
BMY has gained marginally over the past month to close the last trading session at $72.13. It has gained 15.6% year-to-date and 20.4% over the past year.
Here is what could shape BMY’s performance in the near term:
Solid Financials
BMY’s total revenues increased marginally year-over-year to $11.89 billion for the second quarter that ended June 30, 2022. Its non-GAAP net earnings came in at $4.15 billion, up 13.2% from the prior-year period, while its non-GAAP EPS came in at $1.93, up 18.4% year-over-year.
Favorable Analyst Expectations
Analysts expect BMY’s revenue to increase 3.5% year-over-year to $47.69 billion in 2023. Moreover, its EPS is expected to increase 6.7% year-over-year to $8.01 in 2023. Also, its EPS is expected to increase by 4.7% per annum for the next five years.
Of the 10 Wall Street analysts that have rated BMY…
