How Bristol-Myers Squibb Makes its Money: Revenue Breakdown

How Does Bristol-Myers Squibb Make its Money?

Bristol-Myers Squibb (BMS) is a global biopharmaceutical company focused on discovering, developing, and delivering medicines for serious diseases, with leadership positions in oncology, hematology, immunology, and cardiovascular disease. The company made a transformative $74 billion acquisition of Celgene in 2019, adding blockbuster blood cancer drugs Revlimid and Pomalyst to a portfolio already anchored by the cancer immunotherapy Opdivo and the blood thinner Eliquis.

BMS is now navigating the most critical transition period in its history. Revlimid — which was the world’s best-selling cancer drug when acquired — is losing patent protection and facing rapid generic erosion. At the same time, Eliquis (the world’s most prescribed blood thinner) faces its own patent cliff in 2026-2028. BMS must ramp its new growth portfolio (Camzyos for heart disease, Sotyktu for psoriasis, Breyanzi CAR-T therapy, and Opdualag for melanoma) fast enough to offset billions in legacy drug losses.

Bristol-Myers Squibb (BMY) Business Model

Bristol-Myers Squibb operates in the pharmaceuticals sector, generating revenue primarily from patented prescription drugs. The company invests heavily in R&D (~$9.5B annually), develops drugs through clinical trials, obtains regulatory approval, then commercializes them globally through its own sales force and distribution partners. This breakdown uses data from Bristol-Myers Squibb’s 2024 fiscal year filings with the SEC.

BMS’s business model faces the fundamental pharma challenge: patent cliffs. Each blockbuster drug has a limited period of exclusivity (typically 10-15 years), after which generic/biosimilar competitors rapidly erode pricing and volume. The company must continuously replenish its portfolio through internal R&D, acquisitions, and licensing deals to sustain revenue.

Bristol-Myers Squibb Competitors

Bristol-Myers Squibb’s key competitors and comparable public companies in the pharmaceuticals sector include Merck, Pfizer, Eli Lilly, and Gilead Sciences. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Bristol-Myers Squibb stacks up by comparing their revenue breakdown, margins, and growth metrics.

Revenue Breakdown

Eliquis — 27% of Revenue

Eliquis ($12.9B) is a blood thinner (oral anticoagulant) co-developed with Pfizer that prevents stroke in patients with atrial fibrillation and treats blood clots. It’s the most prescribed oral anticoagulant in the world, with over 30 million prescriptions annually in the U.S. alone. Revenue grew 5.7% on continued volume growth as physicians increasingly prescribe Eliquis over older anticoagulants like warfarin.

The critical risk: Eliquis faces patent challenges starting in 2026, with full generic entry possible by 2028. This represents BMS’s largest single revenue source, and its loss would be devastating without replacements.

Opdivo — 20% of Revenue

Opdivo ($9.4B) is BMS’s cancer immunotherapy (PD-1 inhibitor), competing directly with Merck’s Keytruda. While Keytruda has won the commercial battle in most indications, Opdivo maintains a strong position in renal cell carcinoma, esophageal cancer, and hepatocellular carcinoma. Revenue grew 4.4%, supported by label expansions and combination regimens (particularly Opdualag, which combines Opdivo with the LAG-3 inhibitor relatlimab for melanoma).

Revlimid — 8% of Revenue

Revlimid ($3.9B) was once BMS’s crown jewel — a blood cancer drug (for multiple myeloma and myelodysplastic syndromes) acquired through the Celgene deal. Revenue cratered 31.6% as generic competition intensified following patent expiration. The Revlimid cliff was well-anticipated and represents the primary drag on BMS’s overall results. By 2026, Revlimid revenue is expected to decline to under $1B.

New Growth Portfolio — 9% of Revenue

The fastest-growing segment ($4.2B, +90.9%) includes Camzyos (first-in-class treatment for obstructive hypertrophic cardiomyopathy), Sotyktu (oral treatment for plaque psoriasis), Breyanzi (CAR-T cell therapy for blood cancers), Opdualag (melanoma), and Reblozyl (anemia in myelodysplastic syndromes). These drugs represent BMS’s future and must collectively grow to $15-20B+ to offset Eliquis and Revlimid losses.

Bristol-Myers Squibb (BMY) Income Statement

Financial data sourced from Bristol-Myers Squibb SEC Filings.

Bristol-Myers Squibb (BMY) Key Financial Metrics

• Gross Margin: 68.6% — Typical for a large pharma company. Branded drugs carry 85-90% gross margins, while older products facing generic competition have lower margins, blending to 68.6%.
• Operating Margin: 24.7% — Solid but under pressure from the combination of declining high-margin Revlimid/Eliquis revenue and heavy investment in launching new drugs (which require significant sales force buildout and marketing spend before reaching profitability).
• Revenue Growth: 5.3% — A positive headline number, though it masks significant portfolio churn — Revlimid/Pomalyst/Lagevrio declining while New Growth and Eliquis grow.

Is Bristol-Myers Squibb Profitable?

Yes, BMS is profitable, reporting $6.9B in net income on $47.4B in revenue. However, net income declined 13.8% year-over-year despite higher revenue, reflecting the shifting portfolio mix toward less profitable products and increasing investment in new launches and R&D. BMS carries significant debt (~$45B) from the Celgene acquisition, and deleveraging while investing in growth is a balancing act. Free cash flow remains strong at ~$13B annually, supporting the dividend and debt paydown.

Bristol-Myers Squibb (BMY): What to Watch

1. Eliquis patent timeline — Generic entry expected between 2026-2028 would hit BMS’s largest revenue source. The exact timing and competitive landscape will determine the speed of erosion.
2. New Growth Portfolio $15B+ target — BMS needs Camzyos, Sotyktu, Breyanzi, Opdualag, and other new drugs to collectively exceed $15B to replace Eliquis and Revlimid losses. Current trajectory ($4.2B, growing 91%) is promising but needs to sustain high growth rates for several years.
3. M&A and pipeline investments — BMS acquired Mirati Therapeutics ($4.8B) and Karuna Therapeutics ($14B) to bolster its pipeline in oncology and neuroscience. Whether these investments generate blockbuster returns determines long-term revenue stability.
4. Debt reduction — BMS’s ~$45B in debt from the Celgene deal needs to be reduced. The company is using free cash flow for deleveraging, but the pace depends on maintaining strong cash generation through the patent cliff period.
5. Opdivo lifecycle management — With Keytruda dominating the PD-1 market, BMS is differentiating Opdivo through combinations (Opdualag) and specific indications where Opdivo has first-mover advantage. Maintaining Opdivo’s revenue base is critical to the transition.

Bristol-Myers Squibb (BMY) Financial Summary

Bristol-Myers Squibb (BMY) is a global pharmaceutical company that generated $47.4B in total revenue in fiscal year 2024, growing 5.3% year-over-year. The company earned $6.9B in net income while navigating significant patent cliffs on Revlimid and upcoming Eliquis exposure, offset by rapid growth in its new drug portfolio. For a deeper look at Bristol-Myers Squibb’s revenue breakdown, business segments, and financial performance, review the detailed analysis above.