Bristol Myers Squibb announces more cost-cutting amid revenue pressures

USA – Bristol Myers Squibb (BMS) has announced plans to deepen its cost-cutting measures, building on an earlier program revealed in April 2024.

Initially aiming to save US $1.5 billion this year, the pharmaceutical giant now plans to achieve an additional US $2 billion in savings by the end of 2027.

These new measures have sparked concerns about further job cuts, adding to the 2,200 layoffs already announced in the first round.

The company stated that the savings will come from changes in its organizational structure and efforts to improve operational efficiency.

These changes aim to make BMS “a leaner, more efficient company while investing behind growth brands and promising areas of science,” according to its official statement.

This announcement coincided with a weaker-than-expected revenue outlook for 2025, with BMS forecasting US $45.5 billion in revenue—nearly US $2 billion below market expectations. Following the update, the company’s shares dropped almost 5% in pre-market trading.

BMS faces growing financial pressure as it prepares for the loss of patent protection on key drugs like cancer therapy Opdivo (nivolumab) and blood thinner Eliquis (apixaban), both of which could lose exclusivity around 2028.

This adds to challenges from generic competition for its other drugs, including Revlimid (lenalidomide) and Abraxane (nab-paclitaxel).

Additionally, Eliquis is among the first drugs targeted for Medicare price negotiations, set to take effect in early 2026, which could further impact revenue. Despite these challenges, BMS delivered a strong performance in the fourth quarter of 2024.

The company reported US $12.3 billion in revenue, a 9% increase, driven largely by solid sales of Opdivo and Eliquis. Opdivo sales grew 4% to US $2.5 billion, while Eliquis climbed 11% to US $3.2 billion.

BMS’s cost-saving program mirrors similar moves by other major pharmaceutical companies, such as Sanofi, Pfizer, and Bayer, which are also addressing market pressures and patent cliffs.

In addition to its cost-cutting efforts, BMS made notable progress in expanding its portfolio. The company recently received FDA approval for its new schizophrenia therapy, Cobenfy (xanomeline tartrate/trospium chloride).

CEO Chris Boerner expressed optimism, stating that Cobenfy “will have a meaningful impact on patients and the company as a new growth driver.”

Cobenfy was acquired through BMS’s US $14 billion acquisition of Karuna Therapeutics in late 2023. Analysts predict that the therapy could become a blockbuster, generating up to US $10 billion annually at its peak.