Bristol Myers Squibb's Growth Portfolio Now Brings In $7.7 Billion a Quarter. Here's Why That Changes the Stock's Story.

Résumé détaillé

Bristol Myers Squibb is facing down the expiration of patent protections for older drugs, but new drugs are starting to show promise.

Bristol Myers Squibb (NYSE: BMY) has a problem, but it isn't an unusual problem. Simply put, the drug maker's older drugs will lose patent protection, resulting in revenue declines. That's why it is so important that the company's portfolio of newer drugs is already generating roughly $7.7 billion in revenue, which is more than its older drugs currently generate. Here's a deep dive into the math and why risk-tolerant investors may want to add this high-yield drug maker to their portfolios.

It is important to highlight that Bristol Myers Squibb is operating perfectly normally as a business. Pharmaceutical companies have to deal with patent expirations all of the time, which is why they are always on the lookout for new drugs. It is a constant race against the clock that impacts every single drug company. Ultimately, the real problem Bristol Myers Squibb is facing is a timing issue: new drug development doesn't follow a schedule, but patent expirations do.

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This really isn't a situation where a company has lost its way as a business. And Bristol Myers Squibb's new drug portfolio, which it calls its growth portfolio, highlights that fact. In the third quarter of 2026, this collection of more than a dozen drugs generated revenues of $7.66 billion. That's actually more revenue than the $5.42 billion the company's older drugs, which it calls the legacy portfolio, generated. On the innovation front, it is hard to argue that Bristol Myers Squibb isn't still at the cutting edge.

To be fair, $5.42 billion is a lot of revenue, so it is reasonable for investors to be worried. That's part of the reason why the stock yields 4% while the average drug company yields 1.3%.

Right now, the legacy portfolio generates $5.42…

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