Key Takeaways Bristol Myers emerges as the stronger near-term pick over Merck.BMY's new drugs, label expansions and $2B cost-savings plan support 2026 margins.MRK faces Gardasil weakness, Keytruda exclusivity loss and a $2.5B generic headwind.Merck & Co. (MRK) and Bristol Myers Squibb (BMY) are major global drugmakers with expansive, diversified portfolios.Merck stands out for its leadership in oncology, complemented by strong positions in infectious diseases and vaccines.Bristol Myers, meanwhile, concentra ...

It isn't easy to find bargains on the stock market these days. According to a recent analysis by FactSet, the average forward price-to-earnings ratio (P/E) for the S&P 500 index currently stands at 21.5, which is notably above the 17.6 ratio it stood at 10 years ago. So it's gotten a bit tougher to find good choices in the big haystack of equities out there, but there are still some needles in this haystack worth considering. Even better, a few of them pay generous dividends. Where to invest $1,000 right ...

Group 1 - Bristol-Myers Squibb Company (NYSE: BMY) has been recognized as a significant winner in the pharmaceutical sector since a strong buy rating was issued in late October, attributed to its successful execution of strategies [1] - The focus is on analyzing undervalued and disliked companies or industries with strong fundamentals and good cash flows, particularly in sectors like Oil & Gas and consumer goods [1] - Energy Transfer is highlighted as a company that was previously overlooked but has shown potential, indicating a long-term value investing approach [1] Group 2 - The article emphasizes a preference for long-term value investing while acknowledging occasional interest in deal arbitrage opportunities, such as those involving Microsoft/Activision Blizzard and Spirit Airlines/Jetblue [1] - There is a clear aversion to investing in businesses that are not well understood, particularly in high-tech and certain consumer goods sectors [1] - The article expresses skepticism towards cryptocurrencies, indicating a focus on more traditional investment avenues [1]

Bristol-Myers Squibb Company ( BMY ) shares have risen 27.7% since my last article , "Why Bristol-Myers Squibb Remains Undervalued In 2025," in mid-November. They have outperformed the S&P 500 [3.6% return] ( SPY ) during that time.With over two decades of dedicated experience in investment, Allka Research has been a guiding force for individuals seeking lucrative opportunities. Its conservative approach sets it apart, consistently unearthing undervalued assets within the realms of ETFs, commodities, techno ...

Bristol-Myers Squibb Company ( BMY ) shares have risen 27.7% since my last article , "Why Bristol-Myers Squibb Remains Undervalued In 2025," in mid-November. They have outperformed the S&P 500 [3.6% return] ( SPY ) during that time.With over two decades of dedicated experience in investment, Allka Research has been a guiding force for individuals seeking lucrative opportunities. Its conservative approach sets it apart, consistently unearthing undervalued assets within the realms of ETFs, commodities, techno ...

Core Insights - Bristol-Myers Squibb Company (NYSE:BMY) is recognized as a leading immunotherapy stock by hedge funds [1] - The company announced a partnership with Life Science Cares to combat food insecurity, aiming to invest $30 million and mobilize 30,000 volunteer hours by 2030 [1] Financial Performance - In fiscal Q4, Bristol-Myers Squibb reported a 1% revenue growth to $12.5 billion, with growth portfolio revenue increasing by 16% to $7.4 billion [3] - Full-year revenues reached $48.2 billion, with growth portfolio revenues rising by 17% to $26.4 billion [3] Analyst Ratings - Bernstein maintained a Hold rating on Bristol-Myers Squibb with a price target of $58.00 [2] - Morgan Stanley raised its price target from $37 to $40 while keeping an Underweight rating, citing that 2026 revenue and EPS guidance exceeded consensus due to a higher-than-expected Eliquis guide [2]

Core Insights - Bristol Myers Squibb (BMY) has received FDA acceptance for the new drug application (NDA) of iberdomide, in combination with daratumumab and dexamethasone, for treating relapsed or refractory multiple myeloma (RRMM) [1][7] - The FDA has granted a priority review for the NDA, with a decision expected on August 17, 2026 [1] - Iberdomide is part of a new class of drugs known as cereblon E3 ligase modulators (CELMoDs), which are under investigation for RRMM treatment [2][8] BMY's Price Performance - Over the past six months, BMY shares have increased by 24.8%, outperforming the industry average rise of 21.4% [3] Iberdomide Development - The NDA filing is based on data from the phase III EXCALIBER-RRMM study, which showed a statistically significant improvement in minimal residual disease (MRD) negativity rates compared to the control arm [4][7] - The study is ongoing, with patients being assessed for progression-free survival [5] Regulatory Designations - Iberdomide has received Breakthrough Therapy designation from the FDA for the treatment of RRMM [2][7] - The review process is part of the FDA's Project Orbis initiative, allowing simultaneous evaluation by regulatory authorities in other countries [8] Strategic Focus - The successful development of iberdomide and other key pipeline candidates is crucial for Bristol Myers as it aims to expand and diversify its portfolio amid challenges from generic competition [9]

Core Insights - Stocks increased on Wednesday, primarily driven by Big Tech, with Nvidia shares rising 2% following a multiyear partnership with Meta for data center chip usage [1] - WTI crude oil prices rose by 3.4% due to concerns over potential U.S.-Iran hostilities, impacting costs across various sectors [1] - Financial stocks rebounded after a previous decline, with a shift in perception regarding AI's role in enhancing productivity rather than replacing jobs [1] Company-Specific Summaries - Palo Alto Networks experienced a 7.3% decline despite exceeding quarterly expectations, as concerns about AI impacting market share persist; however, the CEO believes AI will ultimately benefit the company [1] - Bristol Myers' stock increased by 27% over three months, driven by the FDA approval of the heart medication Camzyos, but challenges in the Alzheimer's drug trials have raised concerns about future performance [1] - Jim Cramer is considering replacing Bristol Myers with Johnson & Johnson or another high-quality stock due to uncertainties surrounding the company's drug trials [1] Additional Stocks Mentioned - Stocks discussed in the rapid-fire segment included Western Digital, Palantir, Cadence Design Systems, and Analog Devices [1]

Financial Data and Key Metrics Changes - Total revenue for 2025 grew by 38% to $1.4 billion, with royalty revenue increasing by 52% to $868 million, reflecting strong performance from ENHANZE-enabled products [9][17] - Net income for the full year was $316.9 million, down from $444.1 million in 2024, impacted by a $285 million acquired IP R&D expense [19] - Adjusted EBITDA was $657.6 million, compared to $632.2 million in 2024, indicating operational strength despite the IP charge [19] Business Line Data and Key Metrics Changes - DARZALEX Subcutaneous generated $483 million in royalty revenue, a 29% year-over-year growth, with total sales reaching $14.4 billion [10] - PHESGO's royalty revenue increased by 51% to $105.6 million, with total sales growing 48% year-over-year to approximately $3 billion [11] - VYVGART and VYVGART Hytrulo saw a 444% year-over-year growth in royalty revenues to $157.2 million, with total sales reaching $4.15 billion [12] Market Data and Key Metrics Changes - ENHANZE now has 10 global blockbuster opportunities, with significant approvals in the U.S., Japan, and China for various products [8][16] - The subcutaneous formulations of Ocrevus, Opdivo, RYBREVANT, and Tecentriq represent a combined market opportunity of approximately $30 billion by 2028 [13] Company Strategy and Development Direction - The company aims to expand its ENHANZE pipeline, projecting 6 new programs to enter phase one in 2026, bringing the total development portfolio to 15 products [24] - The strategy includes pursuing additional licensing agreements and evaluating new drug delivery technologies to enhance long-term revenue streams [27][28] - Hypercon technology is expected to meet the demand for lower volume, auto-injector-ready therapies, with projections of approximately $1 billion in royalty revenue within five years of the first launches [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term trajectory of the company, emphasizing the durability of royalty revenue and the potential for exceptional value creation [23] - The company anticipates continued strong growth driven by existing products and new collaborations, with a focus on expanding into new therapeutic areas [25][36] Other Important Information - The company completed acquisitions of Elektrofi and Surf Bio, enhancing its drug delivery capabilities and extending IP into the mid-2040s [6][27] - The balance sheet was strengthened with the issuance of convertible notes and an upsized revolving credit facility, reducing near-term refinancing risk [21] Q&A Session Summary Question: Regarding the DARZALEX collaboration with J&J - Management expects to enter discussions with J&J to extend the agreement closer to its expiration in 2032, emphasizing the importance of the partnership [42] Question: On the ADC strategy and regulatory paths - The regulatory pathway for converting ADCs from IV to subcutaneous is expected to follow traditional PK non-inferiority studies, with additional trials for unapproved products [50] Question: Update on Hypercon products and clinical testing - Two Hypercon products are on track for phase 1 clinical testing in 2026, with completion of clinical scale-up batches and IND filings underway [66] Question: Potential incremental royalty opportunities from Merus's petosemtamab - Management highlighted the potential for expanded indications and the importance of subcutaneous formulations in enhancing patient treatment experiences [58]

Financial Data and Key Metrics Changes - Total revenue grew 38% to $1.4 billion, with royalty revenue increasing 52% to $868 million for the full year 2025 [9][17][19] - Net income for the full year was $316.9 million, compared to $444.1 million in 2024, while adjusted EBITDA was $657.6 million, up from $632.2 million in 2024 [19][20] - GAAP diluted EPS was $2.50, down from $3.43 in 2024, while non-GAAP diluted EPS was $4.15, compared to $4.23 in 2024 [19][20] Business Line Data and Key Metrics Changes - DARZALEX Subcutaneous generated $483 million in royalty revenue, a 29% year-over-year growth, with total sales reaching $14.4 billion [10][19] - Phesgo's royalty revenue increased 51% year-over-year to $105.6 million, with total sales growing 48% to approximately $3 billion [11][19] - VYVGART and VYVGART Hytrulo saw a 444% year-over-year growth in royalty revenues to $157.2 million, with total sales reaching $4.15 billion [12][19] Market Data and Key Metrics Changes - ENHANZE-enabled products now include 10 global blockbuster opportunities, with significant approvals in multiple markets including the U.S., Japan, and China [8][16] - The subcutaneous formulations of Ocrevus, Opdivo, RYBREVANT, and Tecentriq represent a combined market opportunity of approximately $30 billion by 2028 [13][16] Company Strategy and Development Direction - The company aims to expand its ENHANZE portfolio with six new programs entering phase I in 2026, bringing the total development portfolio to 15 products [24][35] - Hypercon technology is expected to meet the demand for lower volume, auto-injector-ready therapies, with projections of approximately $1 billion in royalty revenue within five years of the first launches [26][27] - The company plans to pursue strategic acquisitions to enhance its drug delivery portfolio while maintaining financial discipline [27][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term trajectory of the company, highlighting multiple revenue drivers and the durability of royalty revenue [23][39] - The company anticipates continued strong growth from existing products and new launches, with a focus on expanding into new therapeutic areas [24][35] Other Important Information - The company completed acquisitions of Elektrofi and Surf Bio, enhancing its drug delivery capabilities with long-duration IP [6][27] - The company expects to maintain a strong balance sheet and reduce net debt to below 1x by the end of 2026 [21][22] Q&A Session Summary Question: Regarding the mechanics of DARZALEX collaboration with J&J - Management expects to enter discussions with J&J to extend the agreement closer to its expiration in 2032, emphasizing the importance of the partnership [42][43] Question: On the ADC strategy and regulatory paths - Management indicated that the regulatory pathway for converting IV to subcutaneous delivery would likely follow traditional PK non-inferiority studies [49][50] Question: Update on Hypercon products and clinical testing - Management confirmed that two Hypercon products are on track for phase I clinical testing in 2026, with completion of clinical scale-up batches underway [63][64] Question: Expectations for new partnerships in auto-injectors - Management anticipates progress with high-volume auto-injectors and expects to see interest from both current and new partners [75][76]