Bristol Myers Squibb (BMY) earnings Q1 2024

Bristol Myers Squibb on Thursday reported first-quarter income that topped expectations as its blockbuster blood thinner Eliquis and a number of other new medication posted gross sales development.

However the pharmaceutical firm swung to a quarterly loss as a result of one-time expenses associated to its lately closed offers. It additionally launched a program to chop $1.5 billion in prices by 2025, and stated it could reinvest the cash in drug growth.

Bristol Myers stated it’ll prioritize funding in its key drug manufacturers and focus its sources on analysis and growth applications that might ship the best returns, amongst different efforts.

For the primary quarter, Bristol Myers stated the fees that weighed it down primarily replicate its $14 billion acquisition of neuroscience drugmaker Karuna Therapeutics and collaboration agreement with SystImmune, a subsidiary of a Chinese language biotech startup, to co-develop and market its experimental most cancers remedy. 

These offers come as Bristol Myers faces stress to launch new medication and offset the potential loss of revenue from top-selling treatments. The corporate’s standard blood most cancers remedy Revlimid – and ultimately, Eliquis and most cancers immunotherapy Opdivo – faces competitors from cheaper copycats. 

This is what Bristol Myers Squibb reported for the primary quarter in contrast with what Wall Avenue was anticipating, primarily based on a survey of analysts by LSEG: 

• Loss per share: $4.40 adjusted vs. $4.44 anticipated
• Income: $11.87 billion vs. $11.46 billion anticipated 

Bristol Myers, one of many world’s largest pharmaceutical companies, swung to a web lack of $11.9 billion, or $5.89 per share, in the course of the first quarter. That compares to web revenue of $2.3 billion, or $1.07 per share, for a similar interval a yr in the past. 

Excluding sure gadgets, its adjusted loss per share was $4.40 for the interval. 

The loss displays a one-time $6.30 per share cost associated to the lately closed offers, Bristol Myers stated in a launch.

Bristol Myers reported first-quarter income of $11.87 billion, up 5% from the year-earlier interval. 

The corporate reiterated its full-year income forecast of a low single-digit enhance. However Bristol Myers lowered its 2024 adjusted earnings steering to 40 cents to 70 cents per share to replicate the affect of latest offers. 

That compares with a earlier forecast of $7.10 to $7.40 per share, which didn’t embody expenses associated to its buyouts of Karuna Therapeutics and radiopharmaceutical firm RayzeBio, together with divestitures and different gadgets. 

Eliquis, which Bristol Myers shares with Pfizer, is among the many first 10 medication dealing with ongoing worth negotiations with the federal Medicare program. The blood thinner is predicted to lose market exclusivity by 2028.

Anemia drug Reblozyl and superior melanoma remedy Opdualag additionally posted income development in the course of the first quarter. 

Reblozyl booked $354 million in gross sales, up 72% from the year-earlier interval. Analysts had anticipated income of $330.8 million, in response to FactSet.

Opdualag generated $206 million in gross sales for the primary quarter, which is up 76% from the identical interval a yr in the past. Analysts had anticipated income of $206.5 million, FactSet estimates stated. 

The efficiency of different new medication fell in need of Wall Avenue’s expectations. 

Abecma, a cell remedy for a uncommon blood most cancers known as a number of myeloma, drew $82 million in gross sales for the quarter. Analysts had anticipated $112.6 million in income, in response to FactSet. 

The U.S. Meals and Drug Administration earlier this month expanded its approval of that drug, permitting a number of myeloma sufferers to make use of it as an earlier line of remedy.

In the meantime, Revlimid raked in $1.67 billion in gross sales, down 5% from the identical interval a yr in the past. 

Nonetheless, that surpassed analysts’ income expectations of $1.22 billion or the drug, in response to FactSet estimates.  

Opdivo generated $2.07 billion in gross sales for the quarter, down 6% from the primary quarter of 2023. Analysts had anticipated the drug to e-book $2.3 billion in income for the interval, FactSet estimates stated.