Bristol-Myers Squibb Company (BMY)

Bristol Myers Squibb is passing through patent expiry on several large medicines at once and is closing the gap by acquisition.

The company is strong in oncology and immunology: anticoagulants, immuno-oncology, multiple myeloma treatments. The problem is known in advance and priced in: key products lose protection over the next few years, and their revenue will collapse under generic pressure.

The replacement strategy is dealmaking: acquiring companies with late-stage assets in neuroscience, oncology and cardiology. That route is faster than in-house development but more expensive and adds debt, and the outcome depends on whether the acquired medicines meet expectations.

A separate factor is price negotiation with US government programmes: the drugs costing the budget most are selected first, which directly reduces revenue on the most successful products. The company pays a dividend high by sector standards.