PGIM, an investment management company, released its “PGIM Jennison Health Sciences Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equities in the second quarter of 2025 experienced significant volatility, as the steep sell-off that initiated at the beginning of the quarter ultimately led to a strong recovery. The S&P 1500 Health Care Index declined 6.9% in the second quarter, underperforming the S&P 500’s 10.9% return. Health care providers & services, life sciences tools & services, biotechnology, and pharmaceuticals underperformed the Index in the quarter. While healthcare technology and medtech gained in the quarter. In June, the S&P 1500 Health Care Index (the Index) gained 1.9%, lagging the S&P 500, which advanced 5.1%. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its second-quarter 2025 investor letter, PGIM Jennison Health Sciences Fund highlighted stocks such as Bristol-Myers Squibb Company (NYSE:BMY). Headquartered in Princeton, New Jersey, Bristol-Myers Squibb Company (NYSE:BMY) manufactures, distributes, and sells biopharmaceutical products. On September 24, 2025, Bristol-Myers Squibb Company (NYSE:BMY) stock closed at $44.16 per share. One-month return of Bristol-Myers Squibb Company (NYSE:BMY) was -5.80%, and its shares lost 11.89% of their value over the last 52 weeks. Bristol-Myers Squibb Company (NYSE:BMY) has a market capitalization of $89.885 billion.
PGIM Jennison Health Sciences Fund stated the following regarding Bristol-Myers Squibb Company (NYSE:BMY) in its second quarter 2025 investor letter:
“Bristol-Myers Squibb Company (NYSE:BMY) is a global pharmaceutical company focused on discovering, developing, and marketing drugs across multiple therapeutic areas, including Cardiovascular Disease, Oncology, Hematology, and Immunology. BMY currently has three key mega-blockbuster franchises that will lose patent expiry over the next decade: Revlimid which started facing limited generic competition in 2022 and will face full generic entry in 2026; Eliquis, which was part of the first round of Inflation Reduction Act (IRA) negotiations last year, with price cuts effective on Jan 1, 2026, and will face generic entry in 2028/29; and Opdivo, which faces biosimilar competition starting in 2029, although BMY aims to preserve part of the franchise with the recent launch of a subcutaneous formulation that eliminates the need for an Intravenous (IV) infusion. We initiated a position in BMY last spring as the stock seemed deeply undervalued and we had above market expectations for their neuropsychiatric Cobenfy, the main asset acquired in the Karuna deal. We took profits earlier in 2025 as the stock had rallied and closed much of the valuation disconnect; we subsequently sold more well above current levels as we were skeptical about recent readouts due to concerns over trial design, bringing us underweight the name. Our skepticism was borne out with a pair of negative updates on Camzyos and Cobenfy, and coupled with a slightly disappointing quarter, these updates have caused the stock to decline. We exited the last of our position following 1Q earnings.”
Bristol-Myers Squibb Company (NYSE:BMY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 67 hedge fund portfolios held Bristol-Myers Squibb Company (NYSE:BMY) at the end of the second quarter, compared to 69 in the previous quarter. Bristol-Myers Squibb Company’s (NYSE:BMY) total revenues reached around $12.3 billion in Q2 2025, demonstrating strong demand across all sectors of the business. While we acknowledge the risk and potential of Bristol-Myers Squibb Company (NYSE:BMY) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Bristol-Myers Squibb Company (NYSE:BMY) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Bristol-Myers Squibb Company (NYSE:BMY) and shared the list of best pharma stocks to buy according to billionaires. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None. This article is originally published at Insider Monkey.
