Jim Cramer’s Latest Game Plan: 20 Stocks to Watch

16. Bristol-Myers Squibb Company (NYSE:BMY)

Number of Hedge Fund Holders: 61

Cramer talked about Bristol-Myers Squibb Company (NYSE:BMY) in a post-cutting landscape and in relation to the employment report coming out on Friday. Here’s what he said:

“We get two drug stocks on Thursday too. We get Merck and Bristol Myers. This group has been castigated as the wrong place to be when the Fed’s cutting rates, the hedge fund playbook says that. I think both stocks are too low but I also know that if we get a weak employment on Friday, Merck and Bristol Myers will be two stocks that you should not have bought. So put that in a little retrospect.”

Bristol-Myers (NYSE:BMY) stands as a prominent company in the biopharmaceutical sector, focused on addressing a range of diseases across various therapeutic areas, including hematology, oncology, cardiovascular health, immunology, fibrotic diseases, and neuroscience. As the company looks toward the future, it faces challenges stemming from the impending loss of patent exclusivity for two of its key growth drivers: Eliquis, an anticoagulant, and Opdivo, a cancer treatment.

Both products are set to lose exclusivity by the end of the decade, prompting the company to devise a strategy that includes the development of a subcutaneous formulation of Opdivo. On October 25, Citi analyst Geoff Meacham downgraded Bristol-Myers (NYSE:BMY) to Neutral from Buy with a price target of $55, down from $75.

The downgrade came because of the anticipated growth headwinds associated with the loss of exclusivity for Eliquis and Opdivo. The company is expected to undergo a transitional period from 2025 to 2027, which could introduce volatility into its performance. Despite these challenges, Citi maintains a positive outlook on its growth portfolio, viewing the company more as a narrative to watch in 2027 and beyond.