Bristol Myers Squibb (BMY) delivered impressive third-quarter results, exceeding analysts’ expectations for both revenue and earnings per share. The company reported revenues of $11.89 billion, surpassing the consensus estimate of $11.28 billion and marking an 8% year-over-year increase. When adjusted for foreign exchange fluctuations, this growth jumps to 10%. This stellar performance was primarily attributed to the strength of the company’s Growth Portfolio and the continued success of its flagship drug, Eliquis.
The Growth Portfolio, which encompasses a range of innovative therapies, generated $5.81 billion in revenue, a substantial increase from $4.95 billion in the same period last year. This translates to an 18% reported growth rate, or 20% after adjusting for foreign exchange impacts. Key drivers behind this remarkable growth include heightened demand for Reblozyl, Breyanzi, Camzyos, and Opdualag.
Opdivo, Bristol Myers Squibb’s leading cancer drug, saw sales increase by 4% to $2.36 billion, reflecting a rise in volume. Abecma sales also demonstrated impressive growth, surging by 33% to $124 million. Reblozyl, a treatment for anemia, generated $447 million in revenue during the quarter, representing an impressive 80% increase compared to the previous year.
The company’s Legacy Portfolio, which includes established drugs, also contributed to the positive performance. Revenue from the Legacy Portfolio reached $6.08 billion, a slight increase from $6.02 billion in the prior year, representing a 1% growth rate on a reported basis and after adjusting for foreign exchange impacts. This growth was primarily driven by increased demand for Eliquis, partially offset by a decline in Sprycel sales due to generic competition. Eliquis sales reached $3 billion, up from $2.71 billion in the same period last year.
Bristol Myers Squibb also reported an adjusted earnings per share (EPS) of $1.80, surpassing the consensus estimate of $1.49, though down from $2.00 a year ago. The company is committed to streamlining its operations and has initiated cost-saving initiatives, aiming for internal cost savings of approximately $1.5 billion by 2025.
Looking towards the future, Bristol Myers Squibb is launching its newly approved schizophrenia treatment, Cobenfy. The company anticipates the majority of access to the drug to be available by the second half of 2025. The company also provided an optimistic outlook for the year ahead. Bristol Myers Squibb forecasts adjusted EPS of $0.75-$0.95 for 2024, exceeding the prior guidance of $0.60-$0.90 and surpassing the consensus estimate of $0.71. The company expects revenue growth of approximately 6% for 2024, a significant increase from the previously provided low single-digit range.
The strong third-quarter results and optimistic outlook have been met with enthusiasm by investors, with BMY stock experiencing a 5.18% increase to $55.39 at the close of trading on Thursday.
