How sustainable are BMY's expense reductions in 2023?

Bristol Myers Squibb's expense reductions in 2023 and 2024 are sustainable for several reasons: 1. **Strategic Focus**: The company's cost-cutting initiatives, such as the "Strategic Productivity Initiative," are aimed at enhancing operational efficiency and becoming a "leaner, more efficient company." This strategic focus on streamlining operations and reducing inefficiencies is a positive sign for sustainability. 2. **Reinvestment in Growth Areas**: The cost savings are being reinvested in innovation and growth areas, such as drug development and key growth brands. This indicates a forward-thinking approach that prioritizes long-term growth and competitiveness. 3. **Diversification of Revenue Streams**: The company's growth portfolio, which includes key products like Eliquis and Opdivo, is delivering strong revenue growth. Diversification of revenue streams reduces dependence on any single product and provides a more stable financial base. 4. **Long-Term Financial Goals**: Bristol Myers Squibb has set ambitious long-term financial goals, including achieving top-tier sustainable growth and long-term shareholder returns. The company's actions, including its cost-cutting initiatives, are aligned with these goals, suggesting a commitment to sustainability. 5. **ESG Commitment**: The company's recognition in the Dow Jones Sustainability Index for its commitment to innovation, responsibility, and ESG impact further supports the notion that its expense reductions are sustainable, as they are part of a broader strategy to operate responsibly and sustainably. In conclusion, while the sustainability of BMY's expense reductions will depend on various factors, including market conditions and competitive pressures, the company's strategic focus, reinvestment in growth areas, diversification of revenue streams, long-term financial goals, and ESG commitment provide a solid foundation for confidence in the sustainability of these reductions.