Other strengths regard its finances as the company has a good return on capital expenditure, a strong free cash flow, and its high credit rating and low borrowing cost. Also, the automation of activities, high customer satisfaction and successful integration of complimentary firms through mergers and acquisitions are mentioned.
The company's revenue depends on a few brands (Opdivo, Sprycel, Yervoy, and Baraclude). In 2017, these drugs made up 80% of revenue and in 2018 88% of revenue. The focus is on these few brands and therefore its portfolio lacks differentiation.
Biologics has innovated the treatment of chronic illnesses and competitors are heavily investing in this area. Though BMS is investing in this area and will continue to increase its investments in its biologics manufacturing capabilities, the company has a weak presence in the biologics segment. BMS is not in the top 5 companies ranked according to biologics sales and its products are not included in the top 10 biologics brands.
With regard to research and development (R&D), the reports differ in opinion as one report mentions that there is a strong focus on R&D and the other mentions that it invests less than the fastest growing players in the industry and is therefore unable to compete with key players. In 2018, BMS spent $6,345 million on R&D while Roche (a competitor) spent CHF 11,047 million ($11,413 million).
Summary of Findings
During the initial hour of research, we focused on finding SWOT analysis for BMS.
We were able to find 2 reports and the strengths and some weaknesses mentioned in these reports were mentioned in the early findings. While it was not possible to mention the opportunities and threats to the company, these have been mentioned in the sources.
In the chat it was mentioned that Wonder had already done some work on the SWOT analysis. Please note that we had no access to previous work done on the company, therefore, it is not certain if insights or sources were duplicated.
Only the project owner can select the next research path.