Investors have no mercy for drug companies that fail to report profit growth or an improving pipeline of products. Bristol-Myers (BMY), Sanofi (SNY), and Pfizer (PFE) are three such firms investors should consider avoiding.
BMY stock fell when it announced it would buy Mirati Therapeutics. On Oct. 26, 2023, it posted a non-GAAP EPS of $2.00. Revenue fell by 2.2% Y/Y to $10.97 billion. The firm issued a weak revenue guidance for Revlimid, at around $6 billion.
Bristol-Myers has a weak revenue goal for its new drugs. It will take another year before it meets its targets.
Sanofi, based in the UK, posted revenue falling by 4.2% Y/Y to EUR 11.96 billion. It expects its EPS will grow in the mid-single digit percentage in 2023. This is despite strong revenue from the blockbuster drug, Dupixent.
SNY stock is unattractive because it plans to spin off its consumer healthcare unit. J&J (JNJ) separated Kenvue (KVUE), only to see its stock fall. SNY stock fell -19.13% on Oct. 27 after it announced the plan.
Pfizer is the most troubled stock. It slashed its Covid vaccine revenue outlook. Furthermore, the firm is reportedly closing two facilities in North Carolina to cut costs.
When Pfizer raises prices for its vaccine and anti-viral drug, expect demand to fall further.
