Bristol Myers Squibb Acquires Orbital Therapeutics Amid Patent Cliffs

Bristol Myers Squibb is acquiring Orbital Therapeutics for $1.5 billion to develop RNA medicines for autoimmune diseases and counter revenue losses from a looming patent cliff. The company faces a significant decline in its legacy portfolio, which fell from $25.7 billion in 2024 to $21.8 billion in 2025, and expects a further 12% to 16% drop as exclusivity losses continue.

During its Q4 2025 earnings call, management projected 2026 revenue between $46 billion and $47.5 billion, with adjusted diluted EPS between $6.05 and $6.35. While the blood thinner Eliquis is expected to grow by 10% to 15% in 2026, the company warned that European patent expirations could cause sales to drop by $1.5 billion to $2 billion in 2027. To mitigate these risks, the company is expanding its growth portfolio, which reached $26.4 billion in 2025.

CFO David Elkins expects gross margins to range from 69% to 70% and total operating expenses to decrease to approximately $16.3 billion. Despite managing over $47 billion in debt, the firm is positioned as a value investment with a 4.2% dividend yield. Bank of America analyst Jason Gerberry maintained a Buy rating for the company on April 9, though he lowered the price recommendation from $68 to $67.