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FILE PHOTO: The Bristol Myers Squibb research and development center at Cambridge Crossing in Cambridge, Massachusetts, on Dec. 27, 2023.
Adam Glanzman | Bloomberg | Getty Images
On Thursday, Bristol Myers Squibb announced that it exceeded projections for the first quarter and raised its revenue and profit forecasts for the year, citing effective cost management strategies.
The pharmaceutical company is now projecting its revenue for 2025 to be between $45.8 billion and $46.8 billion, an increase from the earlier estimate of approximately $45.5 billion. Additionally, they anticipate adjusted earnings per share for the full year to be in the range of $6.70 to $7, up from the previous forecast of $6.55 to $6.85.
It is important to note that while the company’s revised outlook includes the anticipated effects of current tariffs on U.S. products exported to China, it does not incorporate any implications from President Donald Trump’s proposed tariffs on pharmaceuticals entering the U.S.
China represents a vital market for Bristol Myers Squibb. The firm has previously detailed its “China 2030 Strategy,” which aims to enhance access to its medicines to meet unmet medical needs, particularly in areas such as gastric cancer. The initiative also seeks to include a larger number of Chinese patients in clinical trials.
The increase in guidance reflects the robust performance of the company’s newer drug offerings and stronger-than-expected sales from its established medications.
This announcement comes as Bristol Myers Squibb embarks on a significant cost-reduction plan targeting $2 billion in expenses by the end of 2027, which is in addition to a prior plan to cut $1.5 billion in costs by the end of this year.
However, the recent approval of Bristol Myers Squibb’s schizophrenia treatment, Cobenfy, was met with disappointment after a large clinical trial yielded unsatisfactory results, prompting several analysts to revise their previously optimistic multi-billion dollar sales forecasts for the drug.
The company is relying on Cobenfy and other drugs within its growth portfolio to counterbalance anticipated revenue losses from leading medications that are set to lose patent protection, including the popular blood thinner Eliquis and the oncology drug Opdivo.
The key financial figures reported for the first quarter compared to Wall Street expectations, based on a survey by LSEG, are as follows:
Earnings per share: $1.80 adjusted vs. $1.49 expected
Revenue: $11.2 billion vs. $10.7 billion expected
Bristol Myers recorded a net income of $2.5 billion, equating to $1.20 per share, for the first quarter, a notable improvement from a net loss of $11.9 billion, or a loss of $5.89 per share, in the same quarter last year.
After adjusting for specific items, the earnings per share stood at $1.80 for the quarter.
Despite the impressive figures, the company experienced a 6% decrease in revenue from the previous year, totaling $11.2 billion.
Eliquis generated $3.57 billion in sales during the quarter, representing a 4% decline compared to the previous year, yet surpassing the $3.34 billion that analysts had predicted based on estimates from StreetAccount.
This blood thinner, co-marketed with Pfizer, is expected to lose its market exclusivity by 2028.
Additionally, sales for Eliquis may be affected in 2026 when new negotiated pricing for specific Medicare patients takes effect as part of the Inflation Reduction Act negotiations.
The second round of price negotiations will target an additional 15 medications, with new pricing set to commence in 2028. This list will include Pomalyst, another Bristol Myers medication used to treat multiple myeloma and a cancer associated with HIV.
Pomalyst generated $658 million in sales for the quarter, down 24% year-over-year. Meanwhile, Revlimid, utilized in the treatment of adults with multiple myeloma, reported $936 million in sales for the first quarter, marking a 44% decline from the same period last year.
Conversely, revenue from the company’s growth portfolio amounted to $5.56 billion for the first quarter, reflecting a 16% increase from the previous year.
Opdivo contributed $2.27 billion in revenue for the first quarter, a 9% growth compared to the year-ago period and exceeding analysts’ expectations of $2.16 billion, according to the data from StreetAccount.
In terms of Cobenfy, the new drug generated $27 million in sales for the first quarter.
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