Bristol Myers’ beat completes strong week of pharma earnings
Bristol Myers Squibb on Friday raised its forecast for revenue and profit per share this year after a second quarter in which sales of its older products and new drugs surpassed analyst expectations.
The “beat and raise” followed similarly strong earnings reports this week from AstraZeneca, Roche, Sanofi and AbbVie, all of which upped either their revenue or profit estimates for 2024. Shares in Bristol Myers rose by nearly 9% in Friday morning trading on the news.
Between April and June, Bristol Myers reported earning $12.2 billion in sales, 6% higher than Wall Street consensus forecasts. Second quarter earnings per share were $2.07 on an adjusted basis, 27% higher than estimated, according to Leerink Partners analysts.
The strong performance came across the board, as sales of aging blockbusters like the company’s multiple myeloma drug Revlimid fell less than expected and more recently introduced medicines gained traction. Camzyos, a heart treatment, and Zeposia, a drug for ulcerative colitis and multiple sclerosis, did particularly well versus analyst expectations.
One relatively weaker spot was Sotyktu, a psoriasis pill that has had a slow launch despite Bristol Myers’ high hopes for multibillion-dollar sales. Revenue of $53 million in the second quarter was 4% below consensus forecasts.
Bristol Myers now expects revenues to increase at the upper end of its previously indicated low single digit range, and for adjusted earnings per share to come between $0.60 and $0.90, up from $0.40 to $0.70.
In April, the company announced plans to cut 6% of its workforce and to trim its research spending as it prepares for the impact of expiring patents on its top-selling medicines Opdivo and Eliquis later this decade. Eliquis is also the target of drug price negotiations in the U.S., where the federal government has marked it as one of 10 drugs subject to reduced Medicare reimbursement beginning in 2026.
To address those expected losses, Bristol Myers has turned to dealmaking and is currently awaiting a U.S. approval decision for a schizophrenia medicine it acquired by buying Karuna Therapeutics in a $14 billion deal last year. The Food and Drug Administration is expected to decide on approval of the medicine, known as KarXT, by Sept. 26.
Later this year, Bristol Myers also expects an FDA decision on a subcutaneous formulation of its cancer immunotherapy Opdivo, which could help bolster sales of that treatment as it reaches the end of its patent life.
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