Bristol-Myers Earnings: New Drugs Mitigate Generic Pressure, In Line With Long-Term Expected Trend

Bristol reported first-quarter results largely in line with our projections, and we don't expect any changes to the firm's fair value estimate. Just before the earnings release, Bristol also announced the appointment of Chief Commercialization Officer Chris Boerner to the CEO post to replace Giovanni Caforio, who is retiring effective Nov. 1, 2023. Given the high number of ongoing drug launches, we view Boerner's appointment as a strong strategic fit for Bristol's leadership. Despite facing one of the more challenging patent cliffs in the industry currently, Bristol is largely executing well to offset generic pressures with new drug launches, which should support the firm's wide moat. However, we expect flat earnings over the next several years will likely limit the stock's growth potential.