USA – Bristol Myers Squibb has reported impressive financial results for the third quarter, surpassing Wall Street expectations fueled by robust sales from its flagship blood thinner, Eliquis, and a diverse portfolio of drugs anticipated to drive long-term growth.
The pharmaceutical company has also raised its full-year revenue guidance, reflecting its confidence in the ongoing strength of its product lineup.
In its third-quarter earnings report, Bristol Myers Squibb revealed an adjusted earnings per share (EPS) of US $1.80, exceeding the anticipated US$1.49.
The company’s revenue reached US $11.89 billion, outpacing projections of US $11.28 billion.
Despite these gains, the net income for the quarter was US $1.21 billion, or 60 cents per share, a decline from US $1.93 billion, or 93 cents per share, reported in the same quarter the previous year.
The year-over-year revenue increase of 8% was primarily driven by Eliquis and the company’s Growth Portfolio, which includes the cancer treatment Opdivo.
CEO Christopher Boerner stated, “Our overall business mix is beginning to transform as our growth portfolio is becoming a bigger component.”
He emphasized the importance of the company’s pipeline, which is approaching several “near-term catalysts,” and highlighted a “disciplined focus on expense management” as essential for sustainable growth.
Strategic cost-cutting initiatives
As part of its strategy to strengthen its financial position, Bristol Myers plans to cut US $1.5 billion in costs by the end of 2025.
This initiative includes laying off over 2,000 employees, discontinuing certain drug programs, and consolidating operations.
These savings will be redirected toward enhancing key drug brands and bolstering research and development efforts.
Future outlook
Bristol Myers has raised its full-year revenue expectations, now anticipating a 5% increase in sales, compared to previous guidance of low single-digit growth.
The company also increased its 2024 adjusted earnings forecast to between 75 cents and 95 cents per share, up from the earlier estimate of 60 cents to 90 cents.
The pharmaceutical giant is bracing for potential revenue declines as key products, including Eliquis and Opdivo, approach the end of their market exclusivity.
Eliquis, co-marketed with Pfizer, recorded sales of US $3 billion for the quarter, an 11% increase from the prior year, yet is expected to lose market exclusivity by 2028.
Opdivo generated US $2.36 billion in revenue for the quarter, a 4% rise year-over-year, although it fell short of analysts’ expectations.
New developments
A significant highlight of the quarter was the FDA approval of Cobenfy, Bristol Myers’ novel treatment for schizophrenia, marking the first new class of medication for this chronic mental disorder in over 70 years.
This development signifies a critical addition to the company’s expanding portfolio, potentially enhancing future revenue streams.
The company also reported strong performance from its Growth Portfolio, which generated US $5.8 billion in revenue, up 18% from the previous year.
Key contributors to this growth included the anemia treatment Reblozyl, which saw sales rise to $447 million, exceeding analysts’ expectations.
Additionally, other treatments like Opdualag, Breyanzi, and Camzyos also contributed positively to the portfolio’s revenue.
