Bristol Myers Squibb

Methodology

Bristol Myers Squibb's pharmaceutical portfolio spanning oncology, cardiovascular, and immunology provides relatively stable earnings, though patent expirations create periodic revenue cliffs. The company's Celgene acquisition added blockbuster drugs but also significant debt. This calculation requires careful assessment of patent timelines and pipeline strength—normalized assumptions about sustainable drug mix provide better baselines than transition-period results.

Methodology

Bristol Myers often shows attractive PEG ratios for a large pharma, but this reflects concerns about replacing revenue from key patent expirations with pipeline drugs. The company's oncology focus and Celgene assets provide growth potential, but execution risk on new drug launches tempers valuations. A low PEG may signal value if the pipeline delivers, or appropriately reflect the challenge of replacing blockbusters facing generic competition.

Methodology

Bristol Myers Squibb's substantial dividend yield makes PEGY particularly relevant for income-focused healthcare investors. The company's strong cash generation despite patent pressures supports consistent dividends, though Celgene acquisition debt requires attention. PEGY better captures Bristol Myers' appeal as a high-yield pharmaceutical play where income complements modest growth from new drug launches, though dividend sustainability depends on pipeline success.