On Wednesday, December 27, 2023, Bristol-Myers Squibb Research and Development Center in Cambridge Crossing, Cambridge, Massachusetts, USA.
Adam Glanzman | Bloomberg | Getty Images
Bristol-Myers Squibb The company reported first-quarter revenue Thursday that beat expectations, with sales of its blockbuster blood thinner Eliquis and several new drugs rising.
But the drugmaker posted a quarterly loss due to one-time charges related to a recently completed deal. The company also said it plans to cut $1.5 billion in costs by 2025 and reinvest the funds in drug development.
Bristol-Myers Squibb It will lay off 2,200 employees this year, discontinue some drug programs, eliminate vacant positions, consolidate plants and reduce management levels, among other cost-saving measures. The company said it will prioritize investment in its key drug brands, optimize operations across the company, and focus resources on research and development projects that can bring the highest returns to the company and the greatest health benefits to patients.
Bristol-Myers Squibb executives said on an earnings call Thursday that two-thirds of the savings were related to drug development. Dr. Samit Hirawat, Bristol-Myers’ chief medical officer, said the company has halted about a dozen drug programs so far and will evaluate whether others will be halted throughout the year.
Bristol-Myers Squibb Chief Executive Chris Boerner added that most of the savings come from existing internal operations rather than newly acquired companies.
“We are taking important actions to effectively manage this decade,” Boehner said on the call. “Our management team is committed to ensuring the disciplined execution needed to deliver this year and position us for the long term.”
Bristol-Myers Squibb said the charges that weighed on its results in the first quarter largely reflected its $14 billion acquisition Neuroscience drug maker Karuna Therapeutics’ cooperation agreement Partnered with SystImmune, a subsidiary of a Chinese biotech startup, to develop and market its experimental cancer treatment.
The deals come as Bristol-Myers faces pressure to launch new drugs and offset potential revenue losses from its best-selling treatments. The company’s popular blood cancer treatment Revlimid (and eventually Eliquis and cancer immunotherapy Opdivo) faces competition from cheaper generics.
Shares of Bristol Myers fell more than 1% in premarket trading Tuesday.
Here’s how Bristol-Myers Squibb’s first-quarter report compared with Wall Street expectations, according to a survey of analysts by London Stock Exchange Group (LSEG):
- Loss per share: Adjusted $4.40, expected $4.44
- Revenue: $11.87 billion, $11.46 billion expected
Bristol Myers, one of the world’s largest pharmaceutical companies, reported a first-quarter net loss of US$11.9 billion, or US$5.89 per share. This compares with net income of $2.3 billion, or $1.07 per share, in the same period last year.
Excluding certain items, adjusted loss per share for the period was $4.40.
The loss reflects a one-time charge of $6.30 per share related to the recently completed transaction, Bristol-Myers Squibb said in a news release.
Bristol-Myers Squibb reported first-quarter revenue of $11.87 billion, a 5% increase from the same period last year.
The company reiterated its full-year revenue forecast for low-single-digit growth. But Bristol-Myers Squibb lowered its 2024 adjusted profit guidance to 40 cents to 70 cents per share to reflect the impact of recent transactions.
That compares with the previous forecast of $7.10 to $7.40 per share, which excludes charges related to the acquisitions of Karuna Therapeutics and radiopharmaceutical company RayzeBio, as well as divestitures and other items.
Eliquis, a new drug after growth
Bristol-Myers Squibb said first-quarter revenue growth was driven primarily by higher sales of Eliquis and some of its new drugs.
Eliquis sales for the quarter were $3.72 billion, an increase of 9% over the same period last year. Analysts had expected Eliquis to post revenue of $3.59 billion, according to estimates compiled by FactSet.
Eliquis, shared with Bristol-Myers Squibb Pfizer, one of the first 10 drugs to face price negotiations with Medicare. The blood thinner is expected to lose market exclusivity by 2028.
Bristol-Myers executives said on a conference call that the impact of these negotiations on Eliquis remains unclear. The drug’s final negotiated price will be announced later this year and take effect in 2026, when the company expects revenue and profits to take a hit.
Anemia drug Reblozyl and advanced melanoma treatment Opdualag also posted first-quarter revenue growth.
Reblozyl’s sales were US$354 million, an increase of 72% over the same period last year. Analysts had expected revenue of $330.8 million, according to FactSet.
Opdualag’s first-quarter sales were US$206 million, an increase of 76% over the same period last year. Analysts had expected revenue of $206.5 million, FactSet estimated.
Other new drugs have fallen short of Wall Street expectations.
Abecma, a cell therapy that treats the rare blood cancer multiple myeloma, had sales of $82 million in the quarter. Analysts had expected revenue of $112.6 million, according to FactSet.
The U.S. Food and Drug Administration earlier this month expanded its approval of the drug to allow multiple myeloma patients to use it as an early-stage treatment.
Meanwhile, Revlimid’s sales were $1.67 billion, down 5% from the same period last year.
Still, it beat analysts’ revenue expectations for the drug of $1.22 billion, according to FactSet estimates.
Opdivo’s sales for the quarter were $2.07 billion, down 6% from the first quarter of 2023.
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