Bristol Myers Squibb Co. (BMY): Growing Bigger and Better

One of Bristol-Myers’ largest competitors is Merck & Co., Inc. (NYSE:MRK), which currently has two drugs, Vintafolide and Suvorexant, that look promising for the future. Suvorexant assists in sleep onset and maintenance, while Vintafolide is an orphan drug for the treatment of certain cancers. These drugs don’t serve large markets like the strong diabetic portfolio of Bristol-Myers, so their growth potential is comparatively lower.

AstraZeneca plc (ADR) (NYSE:AZN), another formidable competitor for Bristol Myers Squibb Co. (NYSE:BMY), isn’t in a very good state right now. While many companies are bracing themselves for revenue declines they will face due to patent expirations, AstraZeneca hasn’t done much to prepare for the losses. The company’s drug pipeline is weak, with only promising drugs in Phase III trials.

Conclusion

Although Bristol-Myers’ revenue has dropped in previous years, the current drug approvals and future pipeline indicate a near-future upturn in the top-line. Its competitor, AstraZeneca plc (ADR) (NYSE:AZN), is faring better in terms of operating margin (35% as opposed to Bristol-Myers’ 27%), but Bristol-Myers is doing well compared to the industry average of 11%. Another comparatively sized competitor, Merck & Co., Inc. (NYSE:MRK), has a lower operating margin of 23%. Finally, despite concerns generated by the current financials, such as a high P/E ratio in comparison with competitors and the industry average, Bristol-Myers’ moves make its future look promising. With the expansion of facilities, and revenue kicking in through acquired molecules, Bristol Myers Squibb Co. (NYSE:BMY) will be performing much better soon.

The article Bristol-Myers Squibb: Growing Bigger and Better originally appeared on Fool.com and is written by Shas Dey.

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