What Bristol-Myers Squibb actually does

BMS develops and sells prescription medicines. Its best-known products include the blood thinner Eliquis (sold with Pfizer) and the cancer immunotherapy Opdivo. It became much larger when it bought Celgene in 2019.

How the business makes money

Like other large drug companies, it earns most of its profit from a handful of patent-protected drugs. When a patent ends, cheaper copies arrive and sales of the original can fall quickly. Staying ahead means developing new drugs or buying companies that have them.

The dividend story

BMS pays a quarterly dividend and has raised it every year for many years. The yield is higher than the market average. Investors watch closely whether new products can grow fast enough to replace sales from older ones that lose protection over the next several years.

What to keep an eye on

  • The patent cliff. Several top sellers face generic or biosimilar competition.
  • Debt. The Celgene deal added a lot of borrowing.
  • Pricing rules. Government negotiation can lower drug prices.
  • Pipeline results. New products must succeed in trials.

Quick take

BMS offers a solid yield backed by large cash flows, but the dividend depends on replacing aging blockbusters.