Bristol Myers Squibb's research and development center at Cambridge Crossing in Cambridge, Massachusetts, on December 27, 2023.
Adam Glanzman | Bloomberg | Getty Images
Bristol-Myers Squibb The drugmaker on Friday reported second-quarter earnings and revenue that beat expectations and raised its full-year guidance as the drugmaker moves to cut costs.
The pharmaceutical giant raised its full-year revenue forecast to an increase at the “high end” of the low-single-digit range. That compares with its previous guidance in April for a low-single-digit increase in sales.
The company also raised its 2024 adjusted earnings forecast to between 60 cents and 90 cents per share, up from a previous forecast of between 40 cents and 70 cents per share.
Bristol Myers shares rose nearly 5% in premarket trading on Friday following the results.
The results come as Bristol Myers aims to cut $1.5 billion in costs by 2025 and reinvest that money in key drug brands and research and development programs. In April, the company said that will involve laying off more than 2,000 employees, eliminating some drug programs and consolidating its plants, among other measures.
Here's what Bristol Myers reported for the second quarter compared with what Wall Street expected, according to a survey of analysts by LSEG:
- Earnings per share: Adjusted $2.07 vs. expected loss of $1.63
- Revenue: $12.2 billion versus the expected $11.55 billion
The pharmaceutical giant's revenue rose 9% from the same period a year earlier to $12.2 billion.
Bristol Myers posted net income of $1.68 billion, or 83 cents per share, in the second quarter, compared with net income of $2.07 billion, or 99 cents per share, in the same period a year earlier.
Excluding certain items, its adjusted earnings per share were $2.07 for the quarter.
The second-quarter sales increase was driven primarily by the blockbuster blood thinner Eliquis and a portfolio of drugs the company expects to help it achieve long-term growth. Those treatments include the cancer drug Opdivo, which posted higher-than-expected sales in the quarter.
Revenue from Bristol Myers' blood cancer drug Revlimid also beat analysts' estimates for the period despite facing competition from cheaper generics.
The drugmaker is facing pressure to launch new drugs and make up for lost revenue from Revlimid and other top-selling treatments that will eventually lose market exclusivity, including Eliquis and Opdivo.
Eliquis sales could also be affected in 2026, when a new price for the drug for certain Medicare patients takes effect following negotiations with the federal government. Those pricing negotiations, a key provision of President Joe Biden’s Inflation Reduction Act, are set to end in early August.
New drug portfolio, Eliquis registers growth
Eliquis posted sales of $3.42 billion in the quarter, up 7% from the same period a year earlier. That was in line with analysts' expectations for the drug, according to estimates compiled by FactSet.
The blood thinner, which Bristol Myers shares with Pfizer, is expected to lose market exclusivity in 2028.
Revlimid had revenue of $1.35 billion, down 8% from the same period a year earlier due to generic competition. Still, that figure beat analysts' revenue expectations of $1.09 billion for the treatment, according to FactSet.
Revenue from the company's so-called “growth portfolio” was driven primarily by increased demand for Opdivo, which generated $2.39 billion in sales during the quarter. Analysts surveyed by FactSet had expected that treatment to generate $2.29 billion in revenue.
Anemia drug Reblozyl, advanced melanoma treatment Opdualag and Camzyos, a drug for a certain heart condition, also helped boost revenue for the growth portfolio during the second quarter. All three drugs posted sales above analysts’ expectations, according to FactSet estimates.
Meanwhile, Abecma, a cell therapy for a rare blood cancer called multiple myeloma, generated $95 million in sales during the quarter. Analysts had expected $95.8 million in revenue.
