Bristol-Myers Squibb Research and Development Center at Cambridge Crossing in Cambridge, Massachusetts, on December 27, 2023.
Adam Glanzmann | Bloomberg | Getty Images
bristol myers squibb U.S. drugmaker CDA on Friday reported second-quarter earnings and revenue that beat expectations and raised its full-year guidance as the company moves to cut costs.
The drug giant raised its full-year revenue outlook to 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 guidance for adjusted earnings for 2024 to 60 to 90 cents per share, up from a previous forecast of 40 to 70 cents per share.
Shares of Bristol-Myers rose about 8% on Friday.
The results come as Bristol-Myers seeks to cut costs by $1.5 billion by 2025 and reinvest the money in its core drug brands and research and development programs. In April, the company said that would include laying off more than 2,000 employees, cutting some drug programs and consolidating its sites, among other efforts.
Here's what Bristol-Myers reported for the second quarter compared to what Wall Street was expecting, based on a survey of analysts conducted by LSEG:
Earnings per share: $2.07 adjusted vs. $1.63 expected loss Revenue: $12.2 billion vs. $11.55 billion expected
The pharmaceutical giant's revenue rose 9% from the same period last year to $12.2 billion.
Bristol-Myers reported net income of $1.68 billion, or 83 cents a share, in the second quarter. That compares with net income of $2.07 billion, or 99 cents a share, in the year-ago period.
Excluding certain items, adjusted net earnings per share were $2.07 for the quarter.
The second-quarter sales increase came primarily from the company’s blood-clotting drug Eliquis and a group of drugs that the company expects to help it achieve long-term growth. Among those treatments is cancer drug Opdivo, which had higher-than-expected sales during the quarter.
Revenue from Bristol-Myers' blood cancer drug Revlimid also beat analysts' estimates during the period despite facing competition from cheaper generics.
The company is under 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 goes into effect for some Medicare patients after negotiations with the federal government. Those price talks, a key plank of President Joe Biden’s Inflation Reduction Act, are set to end in early August.
New Drug Portfolio, Eliquis Achieves Growth
Elliquis reported sales of $3.42 billion during the quarter, up 7% from the year-ago period. That was in line with analysts’ expectations for the drug, according to estimates compiled by FactSet.
Blood thinner that Bristol-Myers shares with PfizerApple is expected to lose its market exclusivity by 2028.
Revlimid reported sales of $1.35 billion, down 8% from the year-ago period due to competition from generic drugs. However, those sales beat analysts’ expectations of $1.09 billion in revenue for the treatment, according to FactSet.
The company’s growth portfolio revenue was driven primarily by strong demand for Opdivo, which generated $2.39 billion in sales during the quarter. Analysts surveyed by FactSet had expected revenue of $2.29 billion.
Anemia drug Reblozyl, advanced melanoma treatment Opdualag and Camzyos, a drug for a certain heart condition, also helped boost revenue from the growth portfolio in 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 known as multiple myeloma, posted sales of $95 million during the quarter. Analysts had expected revenue of $95.8 million.
