The Bristol Myers Squibb research and development center at Cambridge Crossing in Cambridge, Massachusetts, on December 27, 2023.
Adam Glanzman | Bloomberg | fake images
Bristol-Myers Squibb on Thursday reported first-quarter revenue that beat expectations, as sales of its popular blood cancer treatment Revlimid and its blockbuster blood thinner Eliquis were stronger than expected.
But the pharmaceutical company suffered quarterly losses due to one-time charges related to its recently closed deals. He also said he plans to cut $1.5 billion in costs by 2025 and reinvest the money in drug development.
Bristol Myers will lay off 2,200 employees this year, discontinue some drug programs, eliminate vacant positions, consolidate its sites and reduce management levels, among other cost savings. The company said it will prioritize investment in its key drug brands, optimize operations across the company and focus its resources on research and development programs that could generate the greatest returns for the company and the greatest health benefits for patients. .
Two-thirds of the savings are associated with drug research and development, Bristol Myers executives said during an earnings conference call Thursday. The company has discontinued about 12 drug programs so far and will evaluate the possibility of eliminating others throughout the year, said Dr. Samit Hirawat, chief medical officer at Bristol Myers.
Chris Boerner, CEO of Bristol Myers, added that most of the savings come from existing internal operations, not newly acquired companies.
“We are taking important steps to effectively manage the decade,” Boerner said during the call. “Our management team has been focused on ensuring the disciplined execution necessary to meet both objectives this year and prepare for the long term.”
For the first quarter, Bristol Myers said the charges affecting it primarily reflect its $14 billion acquisition of neuroscience drug maker Karuna Therapeutics and collaboration agreement with SystImmune, a subsidiary of a Chinese biotech startup. to co-develop and commercialize its experimental cancer treatment. .
Those deals come as Bristol Myers faces pressure to launch new drugs to offset potential lost revenue from best-selling treatments. The company's popular blood cancer treatment Revlimid, and eventually Eliquis and cancer immunotherapy Opdivo, face competition from cheaper imitators.
Shares of Bristol Myers fell more than 7% on Tuesday.
Here's what Bristol Myers reported for the first quarter compared to what Wall Street expected, according to a survey of analysts by LSEG:
- Loss per share: $4.40 adjusted vs. expected loss of $4.44
- Revenue: $11.87 billion vs. $11.46 billion expected
Bristol Myers, one of the world's largest pharmaceutical companies, posted a net loss of $11.9 billion, or $5.89 per share, during the first quarter. That compares with net income of $2.3 billion, or $1.07 per share, during the same period last year.
Excluding certain items, its adjusted loss per share was $4.40 for the period.
The loss reflects a one-time charge of $6.30 per share related to recently closed deals, Bristol Myers said in a statement.
Bristol Myers reported first-quarter revenue of $11.87 billion, up 5% from the same period a year earlier.
The company reiterated its full-year revenue guidance of a low-single-digit increase. But Bristol Myers lowered its 2024 adjusted earnings guidance to between 40 cents and 70 cents per share to reflect the effect of recent deals.
That compares with a previous forecast of $7.10 to $7.40 a share, which did not include charges related to its purchases of Karuna Therapeutics and radiopharmaceutical company RayzeBio, along with divestitures and other items.
Eliquis, new post-growth medications
Bristol Myers said revenue growth during the first quarter was primarily due to higher sales of Eliquis and some of its newer drugs.
Eliquis posted $3.72 billion in sales for the quarter, up 9% from the same period last year. Analysts expected Eliquis to generate $3.59 billion in revenue, according to estimates compiled by FactSet.
Eliquis, which Bristol Myers shares with Pfizer, is among the first 10 drugs facing ongoing price negotiations with the federal Medicare program. The anticoagulant is expected to lose market exclusivity by 2028.
The effect of those negotiations on Eliquis is still unclear, Bristol Myers executives said during the call. The final negotiated price of the drug will be published later this year and will take effect in 2026, which is when the company expects an impact on revenue and profits.
Meanwhile, Revlimid brought in $1.67 billion in sales, down 5% from the same period a year earlier.
Still, that beat analysts' revenue expectations of $1.22 billion for the drug, according to FactSet estimates.
Anemia drug Reblozyl and advanced melanoma treatment Opdualag also posted revenue growth during the first quarter.
Reblozyl recorded $354 million in sales, 72% more than the same period last year. Analysts were expecting revenue of $330.8 million, according to FactSet.
Opdualag generated $206 million in sales during the first quarter, 76% more than the same period last year. Analysts were expecting revenue of $206.5 million, according to FactSet estimates.
The performance of other new drugs fell short of Wall Street's expectations.
Abecma, a cell therapy for a rare blood cancer called multiple myeloma, earned $82 million in sales during the quarter. Analysts were expecting revenue of $112.6 million, according to FactSet.
Earlier this month, the U.S. Food and Drug Administration expanded its approval of that drug, allowing multiple myeloma patients to use it as an earlier line of treatment.
An older drug, Opdivo, generated $2.07 billion in sales during the quarter, down 6% from the first quarter of 2023. Analysts expected the drug to post $2.3 billion in revenue during the period, according to estimates by FactSet.
