Bristol-Myers Squibb’s (BMY) virology portfolio includes drugs for the treatment of chronic viral diseases and infections such as hepatitis B, hepatitis C, and HIV.
The above chart shows the revenues for BMY’s key virology products over the last few quarters.
Hepatitis B franchise
Baraclude is an oral antiviral used for the treatment of hepatitis B infections. The drug reported a 9% fall in revenue to $273 million in 2Q17, compared to $299 million in 2Q16. The fall was mainly the result of generic competition from Teva Pharmaceutical’s (TEVA) entecavir tablets.
Hepatitis C franchise
BMY’s hepatitis C franchise includes two drugs: Daklinza and Sunvepra. These drugs’ revenues fell ~79% to $112 million in 2Q17, compared to $546 million in 2Q16, mainly due to competition in international markets. These drugs compete with other drugs such as Gilead Sciences’ (GILD) Harvoni and Sovaldi, Johnson & Johnson’s (JNJ) Olysio, and AbbVie’s (ABBV) Viekira Pak.
BMY’s HIV franchise includes two drugs: Reyataz and Sustiva. In 2Q17, Sustiva’s revenue fell over 31% to $188 million, compared to $271 million in 2Q16, following the lower sales of the drug due to its loss of exclusivity. Reyataz reported a 24% fall in its revenue to $188 million in 2Q17, compared to $247 million in 2Q16. This fall was driven by lower sales due to competition.
To divest company-specific risks, investors can consider ETFs such as the SPDR S&P Pharmaceuticals ETF (XPH), which holds 4.4% of its total assets in Bristol-Myers Squibb. XPH also holds 4.3% of its total assets in Johnson & Johnson (JNJ), 4.4% in Pfizer (PFE), and 4.5% in Perrigo (PRGO).