Bristol-Myers Squibb Company (BMY): A Bull Case Theory

We came across a bullish thesis on Bristol-Myers Squibb Company on Disruptive Analytics’ Substack by Magnus Ofstad. In this article, we will summarize the bulls’ thesis on BMY. Bristol-Myers Squibb Company’s share was trading at $55.05 as of January 30th. BMY’s trailing and forward P/E were 18.28 and 9.09, respectively according to Yahoo Finance.

Bristol-Myers Squibb Company discovers, develops, licenses, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. BMY is confronting a critical juncture as two of its largest drugs, Revlimid and Eliquis, approach loss of exclusivity, threatening significant revenue declines. In response, BMY is acquiring Orbital Therapeutics for $1.5 billion, aiming to pivot into innovative RNA-based therapies that harness the body’s immune system to target cancer and autoimmune diseases directly.

Unlike traditional cell therapy, which requires removing, modifying, and reinfusing immune cells—a costly and time-consuming process limited to specialized facilities—Orbital’s in vivo RNA approach trains immune cells inside the patient, potentially enabling faster, more scalable treatments. If successful, these therapies could generate billions in annual sales, addressing the urgent need for new revenue streams as BMY’s legacy blockbusters face patent expiration. The acquisition represents a strategic bet on next-generation oncology and autoimmune treatments, leveraging RNA’s ability to deliver targeted immune responses.

However, the company’s track record of acquisitions this decade has been mixed, with numerous promising deals failing to translate into meaningful growth, raising the stakes for this latest investment. Analysts view the Orbital acquisition as a pivotal move that could define BMY’s growth trajectory over the next several years.

If BMY can successfully commercialize these in vivo RNA therapies, it not only offsets revenue lost from expiring patents but positions the company at the forefront of a potentially transformative approach to immunotherapy. Overall, while the acquisition is high-risk, it offers a strategic pathway to innovation and long-term value creation, contingent on execution in a highly competitive and complex biotech landscape.

Previously, we covered a bullish thesis on Bristol-Myers Squibb Company (BMY) by Magnus Ofstad in March 2025, highlighting reliance on its pipeline, particularly Cobenfy, to offset revenue losses from expiring blockbusters. BMY’s stock has depreciated by 6.71% since due to patent expiry concerns. Magnus Ofstad shares a similar perspective but emphasizes the Orbital Therapeutics acquisition and RNA-based in vivo therapies as new growth drivers.

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Disclosure: None.