Bristol Posts Solid Q4 as Core Drugs Help Mitigate Generics, but Long-Term Growth Looks Challenging

Bristol-Myers Squibb reported fourth-quarter results and issued 2023 guidance that ran a bit higher than our expectations, but we don’t expect any major changes to our fair value estimate based on the minor outperformance. With one of the heaviest patent pressures in the industry, Bristol is navigating the current generic headwinds well while also preparing for significant patent losses of Opdivo (cancer drug) and Eliquis (cardiovascular drug) in 2028, giving us confidence in the firm’s wide moat.