Bristol-Myers Squibb and ETFs
The total return for Bristol-Myers Squibb’s share price on the NYSE for July 2010 to June 2015 is about 22.2%, which is higher than some of the ETFs that focus on the pharmaceutical segment.
Bristol-Myers Squibb deals with innovative products, and any failure to secure or protect intellectual property rights is a huge risk and may lead to huge losses.
The forward EV-to-EBIDTA multiple for Bristol-Myers Squibb is 25x. Comparing to its peers, Merck & Co., Eli Lilly, Pfizer, and AbbVie have enterprise multiples of 11.7x, 17.6x, 10.7x, 12x, respectively.
Total debt to equity is a measure of financial leverage that’s calculated by dividing total debt liabilities by shareholders’ equity. Total debt-to-equity ratio for Bristol Myers Squibb is 52.2%.
Research and development is the most crucial part of business for pharmaceutical companies in the prescription drug segment. R&D expenses for Bristol-Myers Squibb were 28.6% of revenues at $4.5 billion in 2014.
Looking at Bristol-Myers Squibb’s financial performance, we see that net revenues decreased by more than 3% to $15.9 billion in 2014, compared to $16.4 billion in 2013.
Bristol-Myers Squibb’s (BMY) cardiovascular franchise deals with medicines that help fight cardiovascular diseases. The first ACE inhibitor was developed by BMY nearly four decades ago.
Bristol-Myers Squibb’s (BMY) immunoscience franchise deals with medicines that help defend the body against invading pathogens like bacteria, viruses, and cancer cells.
Bristol-Myers Squibb’s (BMY) neuroscience franchise deals with disorders of the brain and nervous system. The key product is Abilify (aripiprazole).
Bristol-Myers Squibb’s (BMY) oncology franchise is committed to developing and marketing innovative medicines for the treatment of cancer.
Bristol-Myers Squibb’s (BMY) virology franchise is focused on addressing unmet medical needs of patients with chronic viral diseases and related illnesses like Hepatitis B, Hepatitis C, HIV, and AIDS.
Bristol-Myers Squibb (BMY) deals with pharmaceuticals for serious diseases and has the following business segments: virology, oncology, neuroscience, immunoscience, and carrdiovascular.
On an annualized basis, Bristol-Myers Squibb delivered returns of 22.2% from July 2010 to June 2015, much higher than Merck, Novartis AG, Pfizer, and GlaxoSmithKline.
Since a large portion of a biotechnology company’s value is derived from its R&D assets, discounted cash flow valuation is a more effective valuation technique.
When a US biotechnology company uses market entry strategies to launch its drug directly in the European market, it has to bear all the expenses related to the drug approval process in Europe.
In the early stages of their life cycles, most biotechnology companies are financed by venture capital, which typically comes from wealthy investors who invest in startup companies.
The biotechnology sector is witnessing intense competition with big pharmaceutical companies entering into collaborations and mergers and acquisitions with biotechnology companies.
There’s no complete cure for rheumatoid arthritis, so most RA drugs are part of disease-management therapy. Humira accounts for 23.5% of the RA market share.
The World Health Organization reports the presence of 35 million HIV-infected people in the world. This is expected to prove beneficial for the biotechnology industry.
Most multiple sclerosis drugs are very costly at about $55,000 per year. The FDA’s April 2015 approval of a generic version of Copaxone is expected to lower the overall price of the therapy.
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