Bristol Myers Squibb & Co (BMY) delivered a strong third-quarter performance, exceeding revenue expectations with a reported $11.89 billion. This represents an 8% year-over-year increase, or a 10% rise when adjusted for foreign exchange impacts. The company’s Growth Portfolio, which includes key products like Eliquis, was a major driver behind this success, generating $5.81 billion in revenue, a significant 18% growth on a reported basis.
Analysts remain optimistic about Bristol Myers Squibb’s future, but emphasize the importance of its pipeline for long-term growth. BMO Capital Markets, while acknowledging the conservative approach in the neuropsych space, notes that significant revenue from Cobenfy, the newly approved schizophrenia treatment, is not expected until the second half of 2025. However, BMO highlights the potential upside from a potential Alzheimer’s psychosis treatment, which could further enhance investor sentiment.
Truist analysts, echoing the importance of the pipeline, focused on the impact of KarXT (Cobenfy) during the Q3 earnings call. They believe this crucial asset for treating schizophrenia could drive significant revenue and support long-term growth. Truist projects global peak sales of $4.2 billion, although this is below the $5.4 billion consensus estimate.
While acknowledging the importance of business development and partnerships for diversifying the company’s portfolio, Truist emphasized that maintaining dividends and reducing debt remain top priorities for Bristol Myers Squibb.
Despite the positive earnings, BMY stock is down 1.91% at $54.71 at last check on Friday. The market’s reaction may reflect investor focus on the future and the long-term impact of the company’s pipeline. While the immediate performance is impressive, the true test for Bristol Myers Squibb lies in its ability to translate its pipeline into sustainable growth and revenue streams in the years to come.
