Bristol Myers Squibb and Rosy Outlook's profits on Thursday did not solve persistent problems for actions. But it was enough, for now. The revenues in the first quarter, which ended on March 31, fell 6% to $ 11.2 billion, but exceeded estimates of $ 10.7 billion, according to LSEG. Profit adjusted per share of $ 1.80 exceeded the expectations of $ 1.49. During the first quarter of last year, the company reported a loss. BMY YTD MOUNTAY OF THE ACTUDE OF THE ACCESS OF THE MYERS ASSEMBLY. While mostly more under Thursday above $ 48 each, Bristol Myers shares have lost about 20% in April due to tariff uncertainty and some disappointing news around its pipe. We maintain our rating of 2 equivalent equivalents, instituted in March when we obtained profits of approximately $ 62 per share, while we lower our target price to $ 60 from $ 70. In a nutshell, Bristol Myers has a more difficult path ahead to demonstrate that it can boost the imminent generic competition for some of its oldest drugs. And, this week's failed trial for the new Cobenfy schizophrenia treatment is why. It raises the bar for its execution in Cobenfy for the absorption of patients for the current approved condition and future clinical trial readings for new uses of the medication, such as the psychosis of Alzheimer's disease. The results of Bristol Myers' first quarter on Thursday were solid in his face, since sales, profits and gross margins exceeded expectations. But deepening more in the numbers, it was the force in two of the company's major medications, the lazy Aliquis and the Revlimid blood cancer therapy, which fed a good part of the high -line sales rhythm. That helps explain the reaction of the market with the quarter, and a similar dynamic is at stake with the orientation of Bristol Myers sales and profits at all year. Is it frustrating that the weakest revolim numbers harm the action the last time it reported profits, and now the most anticipated drug results are shruging? Yes. But the disappointing judgment of Cobenfy, in addition to a recent failed study to expand the use of Camzyos cardiac drugs, not to say anything about tariff uncertainties, it is understandable that it has created a less indulgent backdrop. Bristol Myers Squibb why we possess it: the new schizophrenia treatment of the Cobenfy company has great sales potential, although it remains in the first tickets. Bristol Myers has key products, such as the Medication for the Prevention of Eliquis Civil Civil and therapy with opdive lung cancer, which will leave the patent in the coming years. However, we believe that its growth portfolio, including Cobenfy, can help navigate that patent cliff. Initiation: November 25, 2024 Most recent purchase date: February 10, 2025 competitors: Abbvie, Pfizer, Amgen, Johnson & Johnson and Merck as Jim Cramer explained at the morning meeting on Thursday, we have not lost total confidence in Bristol Myers' ability to execute, so we are invested. At current prices, the dividend yield of the 5% shares is also attractive, and the assessment, less than 8 times the profits, is not demanding. However, the path to victory and the profits of significant actions has become more difficult. On Thursday, comments investors focused on Cobenfy, the quid of the club's shares thesis, after the new schizophrenia drug did not meet expectations in an essay that examined its effectiveness as an additional therapy for the disorder. That exerted pressure on the actions in Wednesday's session, losing a wide rally throughout the market. Cobenfy is key to the Bristol Myers plan to navigate the expiration of patents for several “inherited” drugs, such as the aforementioned Eliquis and Revlimid. Cobenfy received the approval of US regulators as an independent schizophrenia treatment in September 2024, six months after Bristol Myers closed his purchase of $ 14 billion of Karuna Therapeutics, which brought Cobenfy on board. Cobenfy sales in the first quarter totaled $ 27 million, before the $ 17 million expected by analysts, according to Factset. However, the informed figure includes a “gross to network” benefit of $ 9 million associated with discounts and reimbursements, which makes the rhythm versus expectations is less substantial. CEO Chris Boerner said Bristol Myers is satisfied with the first prescription trends for Cobenfy. “The feedback of the patient and the doctor is very positive,” he said, adding that “patients are observing cognitive benefits.” Boerner and other executives in the call maintained a positive opinion about Cobenfy's future despite the reverse of additional evidence. The company continues to focus on Cobenfy as an independent treatment, which represents 70% to 80% of the market, Boerner said. The goal is for Cobenfy to be the “fundamental treatment” there, he said. Adam Lenkowsky, marketing director of the company, offered a deeper explanation of why the opportunity for additional treatment was secondary in its plans. He said that psychiatrists ideally want to give their patients only a drug. However, he said that the reason why complementary therapies begin to consider is because an independent treatment is not effective enough. Bristol Myers wants to move Cobenfy in the line of treatment so that doctors consider to prescribe it before, Lenkowsky said. In another sign of trust in the medicine, Boerner said that Bristol Myers hopes to start three additional tests in the latest stage that examine Cobenfy to treat other conditions: (1) Alzheimer's Enfiry Agition, (2) the impediment of Alzheimer's cognition, and (3) bipolar I. A reading in a late test COBENFY. Executives said the reverse in complementary schizophrenia does not change their expectations for the other evidence. The Bristol Myers orientation raised its 2025 guide on some key metrics, but the reasons for the reviews, including the benefits of foreign exchange, explain why the company is not receiving much credit. The Bristol Myers sales perspective is now $ 45.8 billion to $ 46.8 billion, compared to $ 45.5 billion before. That reflects a benefit of $ 500 million of exchange rates. The company also expects better income than expected of its “inherited” medication portfolio in the first quarter and what the company called solid performance in its most important “growth” portfolio. In the first quarter, the growth portfolio saw a 18% increase in income and represented approximately half of the total sales. In the earning call, executives said that income from the inherited portfolio is expected to decrease between 16% and 18% this year, a more modest decrease than expected, mainly due to Revlimid's yield. Bristol Myers maintained its objective of operational margin all year of 37%. The new EPS orientation adjusted from $ 6.70 to $ 7 increased by 15 cents at both ends of the range. The company is also factoring at $ 70 million more in revenues of royalties and interests of the expected. In addition, the guide explains existing tariffs on American products imported to China, but not specific pharmaceutical tariffs threatened by the Trump administration. As expected, executives were dotted with questions about tariffs about the gain call, and its general message was basically that the company has a lot of flexibility within its manufacturing network to answer, and they are looking for ways to optimize it with tariffs in mind. Bristol Myers has a significant presence in the United States, but does not depend too much on any country for its supply chain, executives explained. “We will also continue to commit ourselves to the administration to ensure that, ultimately, what is descended is well and deliberate in terms of how we advance,” Boerner said. Something final that must be highlighted from the call was the discussion about business development, often shortened for “BD” by executives. This includes possible acquisitions or associations in medicines, which represent another level to achieve compensated patents. Boerner said Bristol Myers is “actively chasing opportunities” that can boost the company's growth profile. “With our renewed organizational agility and balance in a solid position, we have the flexibility of acting decisively when we find the right opportunities,” he said. (Jim Cramer's charitable trust is Long Bmy. See here a complete list of actions). As a subscriber of the CNBC Investing Club with Jim Cramer, he will receive a commercial alert before Jim makes an exchange. Jim waits 45 minutes after sending a commercial alert before buying or selling an action in the portfolio of his charitable trust. 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The logo of the Bristol-Myers Squibb pharmaceutical company, (BMS) is seen on the facade of the company's headquarters on August 29, 2024 in Munich (Bavaria).
Matthias Balk | Image Alliance | Getty images
Bristol Myers SquibbThe rhythm of profits and Rosy Outlook on Thursday did not solve persistent problems for actions. But it was enough, for now.
