Opinion: Bristol Myers Squibb Is a Buy -- but the Real Reason Why Might Surprise Investors
Bristol Myers Squibb is facing down a major patent cliff, which is a problem and a huge motivating force.
Overview
Bristol Myers Squibb (NYSE: BMY) was created via the combination of companies founded in 1858 and 1887. It has a proven history of survival in the highly competitive and innovative pharmaceutical industry. That's important to remember as investors examine the upcoming patent cliff for cardiovascular drug Eliquis in 2028. It will be a big revenue hit, but patent expirations are just a normal part of the drug business. Here's why Bristol Myers Squibb is still worth buying, and it has nothing to do with the big rumor.
The big story around Bristol Myers Squibb over the past month or so was the rumor that AstraZeneca (NYSE: AZN) was in discussions to buy it. Bolt-on deals are pretty common in the pharmaceutical space, but this wouldn't be a bolt-on; it would be a mega merger. Industry watchers don't see a high likelihood that it will get done. In the grand scheme of investing, trying to invest around mergers and acquisitions isn't the best long-term plan, anyway.
Image source: Getty Images.
Details
Source
Originally published at www.fool.com.