Bristol-Myers Squibb: Acquisitions Continue to Help Mitigate Upcoming Major Patent Losses

Following the recently announced acquisition of Karuna, Bristol announced the acquisition of RayzeBio, but we don’t see either acquisition as impacting the firm’s fair value estimate. We believe Bristol is gaining the targets largely at fair values. We believe the ramping in acquisitions is primarily aimed at addressing the firm’s major 2028 U.S. patent losses of cardiovascular drug Eliquis and cancer drug Opdivo. While we believe Bristol’s internal pipeline is solid and helps reinforce the firm’s wide moat, we also believe the company needs acquisitions to address to the major patent expirations.