Bristol Myers Squibb Co. (NYSE:BMY) also appears to have a diverse enough pipeline to avoid a total patent cliff swan dive. Fool contributor Keith Speights notes that only Sanofi SA (ADR) (NYSE:SNY) earns more of its revenue from its “other” drugs, the non-blockbusters that can still add up to big money over the course of a fiscal year. Until last year, Bristol actually initiated more clinical trials than Sanofi SA (ADR) (NYSE:SNY). It may need to pick up the pace in this regard, as it’s already lost a big chunk of revenue from the Plavix patent expiration, and only Eli Lilly & Co. (NYSE:LLY) risks more aggregate revenue losses from expiring patents over the next two years. However, at the moment, Keith believes that Lilly has the better and more attractive dividend payout.
Bristol Myers Squibb Co. (NYSE:BMY) will need to avoid disasters like its 2012 Inhibitex purchase, which wound up as a near-total loss as that company’s hepatitis treatment turned out to be a dud. It’s yet to discover anything (Eliquis and Forxiga notwithstanding) that can replace the cash-spinning power of Plavix, but investors aren’t deterred — if you believe the share price gains of recent months, the best is still to come.
Putting the pieces together
Today, Bristol Myers Squibb Co. (NYSE:BMY) has some of the qualities that make up a great stock, but no stock is truly perfect. Digging deeper can help you uncover the answers you need to make a great buy — or to stay away from a stock that’s going nowhere.
The article Is Bristol-Myers Squibb Destined for Greatness? originally appeared on Fool.com and is written by Alex Planes.
Fool contributor Alex Planes holds no financial position in any company mentioned here. Add him on Google+ or follow him on Twitter @TMFBiggles for more insight into markets, history, and technology.The Motley Fool has no position in any of the stocks mentioned.
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