Bristol Myers Squibb Research and Development Center, Cambridge Crossing, Cambridge, Massachusetts, December 27, 2023.
Adam Glanzman | Bloomberg | Getty Images
Bristol-Myers Squibb The company on Friday announced second-quarter profit and sales that beat expectations and raised its full-year outlook as it moves to cut costs.
The pharmaceutical giant raised its full-year sales forecast to a “high-end” low-single-digit increase, up from its previous outlook for low-single-digit sales growth in April.
The company also raised its 2024 adjusted earnings outlook to 60 cents to 90 cents per share from 40 cents to 70 cents.
Bristol-Myers shares rose about 8% on Friday.
The results come as Bristol-Myers moves to cut $1.5 billion in costs by 2025 and reinvest the money in its key drug brands and research and development programs. The company said in April it would make a range of moves, including laying off more than 2,000 employees, eliminating some drug programs and consolidating locations.
Here’s how what Bristol-Myers reported for the second quarter compares to Wall Street expectations, based on LSEG’s analyst survey.
- Earnings per share: Adjusted loss of $2.07 (expected loss of $1.63)
- Revenue: $12.2 billion vs. expected $11.55 billion
The pharmaceutical giant’s revenue rose 9% year-over-year to $12.2 billion.
Bristol-Myers said it had second-quarter net income of $1.68 billion, or 83 cents a share, compared with $2.07 billion, or 99 cents a share, in the same period last year.
Adjusted earnings per share, excluding certain items, were $2.07 for the quarter.
The second-quarter sales increase was driven primarily by the company’s blockbuster blood thinner Eliquis, as well as a portfolio of drugs it expects to drive long-term growth, including cancer drug Opdivo, which posted better-than-expected sales in the second quarter.
Bristol-Myers Squibb’s sales of its blood-cancer drug Revlimid also beat analyst expectations for the quarter, despite the drug facing competition from cheaper generic versions.
The company faces pressure to launch new drugs to make up for declining revenue from Revlimid and other top-selling treatments such as Eliquis and Opdivo that will eventually lose market exclusivity.
Eliquis sales could also take a hit in 2026 if negotiations with the federal government result in new drug prices being applied to certain Medicare patients. Those price talks, a key provision of President Joe Biden’s Stop Inflation Act, are scheduled to wrap up in early August.
New Drug Portfolio, Eliquis, Posts Growth
Eliquis sales rose 7% from a year ago to $3.42 billion in the quarter, in line with what analysts had expected for the drug, according to estimates compiled by FactSet.
A blood thinner being co-developed by Bristol-Myers Squibb Pfizeris expected to lose market exclusivity by 2028.
Revlimid sales were $1.35 billion, down 8% from a year ago due to generic competition, but still beat analysts’ sales estimates of $1.09 billion for the treatment, according to FactSet.
Revenue from the company’s so-called growth portfolio was driven mainly by rising demand for Opdivo, which generated sales of $2.39 billion in the quarter. Analysts surveyed by FactSet had expected the drug to bring in $2.29 billion in revenue.
Anemia drug Revlozil, advanced melanoma treatment Opdualag and certain heart disease drugs Kamjos also helped boost growth portfolio revenue in the second quarter. All three drugs posted sales that beat analysts’ expectations, according to FactSet estimates.
Meanwhile, Avecma, a cell therapy for a rare blood cancer called multiple myeloma, earned $95 million in sales for the quarter. Analysts were expecting revenue of $95.8 million.
