Bristol Myers Squibb
Bristol Myers Squibb (Ticker: NYSE: BMY) is a medicines and science company dating back over 135 years. Starting out by Edward Robinson Squibb who was born on the 4th July 1819 in Wilmington, Delaware, USA.
Edwards aim was to provide high quality standardised medicines after spending 10 years in the navy as a surgeon. A crusader against impure drugs and at request from the government in 1847 he set up a laboratory in a Naval Hospital in Brooklyn New York. In 1852 he starts production of Ether by distillation in a way to provide relief to suffering patients going through operations with no anaesthesia. From here the company structure starts being joined along the way by fellow scientists William McLaren Bristol (1887) & right up to 1989 when Bristol Myers & Squibb companies merge. The full and extremely interesting history is can be found on their website by clicking here.
Today Bristol Myers Squibb is a global biopharmaceutical company that focuses in the unmet needs of patients with serious diseases.
The company has an array of products / medicines that are available which is far too many to list, however these is a link provided to their website here.
This is what I would deem to be a quality medicines business in that today its focuses in the following specialist fields like: Oncology, Hematology, Immunology, Cardiovascular & Fibrosis.
Here are 10 reasons behind my thesis for an investment case:
1, Global sales annually of $45.06 Billion (31/12/23)
2, Extensive pipeline of drugs in development trials
3, BMY has been a dividend paying company for over 50 years (Historical dividends can be found here)
4, Areas of interest Gene Therapy
5, Areas of interest Protein Homeostasis
6, Areas of interest Cell Therapy
7, Areas of interest Drug Delivery technology
8, Areas of interest Antibody Drug Conjugates
9, BMY have been on an acquisition trail in recent years picking up company’s like Celgene in 2019 & MyoKardia in 2020
10, BMY have a history of partnerships and collaborations with various companies in developing the next generations of medicines that builds on their heritage in developing blockbuster drugs.
Bristol Myers Squibb average five year share price
The average share price over the past five years (11/08/2019 to 08/08/2024) for Bristol Myers Squibb BMY sits between:
The lowest of $39.35 on the 7th July 2024.
To the highest of $81.44 on the 12th April 2022.
Based on my own personal experience looking at a long term hold, today I would purchase additional shares between a price ranging from $39.95 to $45.00.
An ideal exit strategy would be to hold for 10-15 years with a sell price between $85-$95 dollars.
Using such a time frame would allow for new drugs to be approved which in turn should hopefully increase revenues and profits.
There has been recent concerns regarding the expiry of certain patents that could erode sales and profits around the 2030 mark. BMY have not been resting on their laurels though as they have been on a spending spree over the last year which has been a theme for other pharmaceutical manufacturers that are in similar patent cliff situations.
My investment case remains the same and I will continue to hold BMY in the portfolio with a long term view.
Bristol Myers Squibb Dividend
Bristol Myers distribute a quarterly dividend usually in the months of February, May, August and November.
The company’s annual dividend payments has been increased for the last 17 years.
The most recent quarterly dividend was increased from $0.57 to $0.60 cents or $2.40 dollars annualised (Ex Div: 04/10/2024).
For research purposes we have listed the last eleven years of annual payments below:
2024 $1.60
2023 $2.28
2022 $2.16
2021 $1.96
2020 $1.80
2019 $1.64
2018 $1.60
2017 $1.56
2016 $1.52
2015 $1.48
2014 $1.44
BMY current fundamentals:
P/E: -14.58% (05/08/2024)
Fwd P/E: 6.88% (05/08/2024)
EPS: 3.86 (31/03/2024)
Dividend yield is 5.04% (05/08/24)
This equity has been held in the portfolio for 4 years (16 quarters) at a starting quantity of 65 shares, which has been increased to 90 at the end of 2023.
When funds allow I will further increase to 110+ shares in the next year to 18 months.
Total income to date is £482.82.
Further income analysis can be seen the file below:
BMY
Please remember that all investments can rise and fall in value, therefore you may get back less then you originally invested.
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