Management feels the company's new drug portfolio is "significantly de-risked," and they have a few other drugs in their pipeline.īristol-Myers is also planning mergers and acquisitions as part of its strategy to deal with patent expirations. Like Merck, Bristol-Myers Squibb also faces a significant patent cliff later this decade, although it launched nine new drugs between 20, including three first-in-class treatments for three different diseases. Further, Bristol-Myers' mean P/S over the last five years has been about 3.8.
Excluding that negative period, Bristol-Myers' P/E has ranged from about 12 to 54. Over the last five years, the company's mean P/E has been negative due to a sizable $9 billion loss in Fiscal 2020. For these reasons, a neutral view looks appropriate for Bristol-Myers.īristol-Myers Squibb is trading at a P/E of about 23.5, putting it roughly in line with the current industry average and a P/S of about 3.2, slightly below the industry. The company also faces a patent cliff, putting it on par with Merck in that respect, except that it's less profitable, with a net income margin of 14% to Merck's 24.5%.
At $118.83, the average Merck stock price target implies upside potential of 6.2%.īristol-Myers Squibb looks fairly valued, although that could change. Merck has a Moderate Buy consensus rating based on 14 Buys, six Holds, and zero Sell ratings assigned over the last three months. Those sales appear to have occurred around the time the stock reached record highs. Notably, several Merck insiders unloaded significant numbers of shares about two months ago, including a massive sale of $7.8 million worth of shares by Executive Vice President Jennifer Zachary after exercising some options. However, the pharmaceutical giant faces calls from Senator Elizabeth Warren and others for the patent office to scrutinize its practices, so this is far from a surefire win.
Merck is also trying to patent new formulations of Keytruda, filing more than 100 patents linked to the drug to try to extend its exclusivity to 2036. However, the company hopes recent acquisitions like Imago BioSciences, which closed in the first quarter, will help it replace the lost revenue. Unfortunately, Merck faces significant risk as its patent for Keytruda, a $20 billion drug, expires in 2028. Meanwhile, the American pharmaceutical industry is trading at a P/E of about 23, versus its three-year average of 44, and a P/S of around 4.4, the same as its three-year average. Merck is trading at a price-to-earnings (P/E) ratio of 19.1 times and a price-to-sales (P/S) ratio of 4.6, compared to its mean P/E of 35 and mean P/S of 4.4 over the last five years.
0 kommentar(er)
