Bristol Myers Squibb reported impressive second-quarter earnings and revenue, surpassing Wall Street expectations and leading to an increase in its full-year guidance. The pharmaceutical giant now anticipates a revenue increase in the “upper end” of the low single-digit range, compared to its previous April forecast of a low single-digit rise. Additionally, the company raised its 2024 adjusted earnings guidance to 60 to 90 cents per share, up from an earlier forecast of 40 to 70 cents per share. Following the announcement, Bristol Myers’ shares rose nearly 5% in premarket trading.
The positive results come amid Bristol Myers’ efforts to cut $1.5 billion in costs by 2025. This initiative includes laying off over 2,000 employees, streamlining drug programs, and consolidating sites. The savings are intended to be reinvested into key drug brands and research and development programs.
For the second quarter, Bristol Myers reported earnings per share of $2.07 adjusted, significantly higher than the expected loss of $1.63. The company’s revenue for the quarter was $12.2 billion, exceeding the anticipated $11.55 billion and reflecting a 9% increase from the same period last year. Net income stood at $1.68 billion, or 83 cents per share, down from $2.07 billion, or 99 cents per share, a year earlier.
The revenue growth was primarily driven by the company’s blockbuster blood thinner Eliquis and a portfolio of promising drugs expected to contribute to long-term growth. Eliquis generated $3.42 billion in sales for the quarter, up 7% from the previous year, aligning with analysts’ expectations. The cancer drug Opdivo also performed well, bringing in $2.39 billion in sales, surpassing the expected $2.29 billion.
Despite facing competition from cheaper generics, Bristol Myers’ blood cancer drug Revlimid recorded $1.35 billion in sales, an 8% decline from the previous year but still above analysts’ expectations of $1.09 billion. The company’s “growth portfolio” also saw significant contributions from drugs like Reblozyl, Opdualag, and Camzyos, all of which posted sales exceeding analysts’ estimates.
Looking ahead, Bristol Myers faces the challenge of launching new drugs to compensate for the anticipated revenue loss from top-selling treatments like Eliquis and Opdivo, which will eventually lose market exclusivity. Eliquis, in particular, may see a sales impact in 2026 due to new Medicare pricing following federal negotiations.
Overall, Bristol Myers Squibb’s strategic cost-cutting and focus on reinvestment in key areas appear to be setting a strong foundation for future growth and stability in the competitive pharmaceutical landscape.
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