BMY NDR: The Quiet Before The Catalyst Storm

Research evidence excerpt

BMY NDR: The Quiet Before The Catalyst Storm

May 13, 2026

Getting creative with cost containment. Absent these large-scale transactions, the company has demonstrated it has

room to increase spending as opportunities arise. The $2B productivity initiative is an integral part to that with portfolio

maturation through 2025 and into 2028 adding another layer of natural relief as programs run their course. In addition

to this, the team expressed a desire to pursue more off-P&L funding exercises: the Bain Capital partnership is a prime

example of this. Recall, Bain funds the development across five immunology assets while BMY retains a 20% equity

stake alongside royalties and milestones. We came away with the impression that this won't be the last of its kind.

Similarly, the company pointed to potential opportunities in China as having the distinct advantage of cost-efficiency,

speed of the regulatory environment, and the company's boots on the ground approach as internal research teams

actively scour for innovations – mainly INDs. In our view, BMY's early embrace of these mechanisms may prove to be

as much a competitive advantage as it is a financial one.

Growth doesn't require a perfect scorecard. The company had previously touted that it expects its EPS growth rate

to be one of the fastest growing relative to its peers post the perceived trough period in 2028/2029. In the same

context, mgmt. reaffirmed that internal projections are grounded in risk-adjusted assumptions, and that above-industry

growth remains achievable even in scenarios where not all pipeline readouts are successful. Milvexian, for example,

was accentuated as an important growth driver in addition to iberdomide and mezigdomide as replacements for the

Revlimid and Pomalyst franchise, respectively.