Bristol Myers Squibb Growth Portfolio Reaches $7.7 Billion, Outpacing Legacy Drugs Amid Patent Cliff Concerns
Bristol Myers Squibb's newer drug portfolio has grown to $7.7 billion a quarter, surpassing its older products as the company prepares for upcoming patent expirations.
📈MarketsPhoto: Motley Fool
Key points
- Growth portfolio generated $7.66 billion in the third quarter of 2026
- Legacy portfolio brought in $5.42 billion, led heavily by Eliquis sales of $4.69 billion
- U.S. patent for Eliquis is scheduled to expire in 2028
- Stock currently offers a 4% dividend yield with a 55% trailing payout ratio
Pharmaceutical giant Bristol Myers Squibb is seeing its growth portfolio generate roughly $7.7 billion in revenue, successfully outpacing its older legacy products which brought in $5.42 billion during the third quarter of 2026. This financial shift highlights the company's ongoing efforts to offset inevitable revenue declines as older medications lose patent protection.
Despite the strong performance of more than a dozen new drugs in its growth collection, investor anxiety persists around upcoming patent expirations. A major concern centers on the blockbuster blood thinner Eliquis, which accounts for $4.69 billion of the legacy portfolio's sales and faces a U.S. patent expiration in 2028. This upcoming cliff is a primary driver behind the stock's elevated 4% dividend yield, which significantly outpaces the 1.3% average for typical drug companies and the broader healthcare sector.
Income-focused investors analyzing the dividend's safety will find that the company maintains a reasonable trailing 12-month payout ratio of 55%. Furthermore, corporate management has a historical track record of supporting the payout through challenging business cycles, having increased distributions for over three decades.
What to watch next: Monitor the continued sales trajectory of Bristol Myers Squibb's growth portfolio and updates regarding pipeline developments ahead of the 2028 Eliquis patent expiration.
Source Motley Fool — fool.com/investing/2026/11/14/bristol-myers-squibbs-growth-portfoli… ↗
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