Bristol Myers earnings beat expectations, driven by sales of older drugs

By Michael Erman

(Reuters) -Bristol Myers Squibb reported a higher-than-expected third-quarter profit on Thursday, citing strong sales of established drugs like blood thinner Eliquis and cancer treatment Revlimid as well as newer products such as heart medicine Camzyos and cancer cell therapy Breyanzi.

Shares were up 4.2% after earlier climbing to $56.20, their highest level since last October.

The U.S. drugmaker said it earned $3.7 billion in the quarter, or $1.80 per share, compared with $4.1 billion, or $2 per share, a year earlier. Analysts, on average, expected the company to earn $1.49 in the quarter, according to LSEG data.

Revenue rose 8% to $11.89 billion, exceeding analysts’ forecasts of $11.28 billion.

Sales of blood cancer drug Revlimid, which is now facing generic competition, dropped 11% to $1.41 billion in the quarter, but topped analyst expectations of $1.11 billion. Sales of Eliquis, which Bristol Myers (NYSE:BMY) shares with Pfizer (NYSE:PFE), rose 11% in the quarter to $3 billion, compared with analyst estimates of $2.83 billion.

“The legacy portfolio has continued to contribute a significant amount of cash flow to the company, and that’s enabled us to deleverage and strengthen the balance sheet,” Chief Financial Officer David Elkins said in an interview.

“But the majority of the growth of the company overall … was really driven by the growth portfolio growing 20% versus prior year,” Elkins said.

Sales of Breyanzi and Camzyos more than doubled year-over-year. Breyanzi sales for the quarter were $224 million, while Camzyos brought in $156 million.

“As generic competition and IRA (Inflation Reduction Act) loom, investors need more from growth assets and Cobenfy,” said Guggenheim Securities analyst Seamus Fernandez, referring to Bristol’s recently approved schizophrenia drug.

Eliquis was one of the 10 drugs included in the first wave of Medicare price negotiations allowed under the IRA and faces a price cut of 56% beginning in 2026.

Fernandez said the modest beat for products like Camzyos and Breyanzi was encouraging, but was not a source of enthusiasm.

The company is awaiting U.S. approval of an under-the-skin injection form its cancer drug Opdivo, expected by the end of 2024. The original intravenous form of the cancer immunotherapy is expected to lose patent protection later this decade.

“We anticipate this launch in early 2025 will provide an important benefit for both patients and physicians,” said CEO Chris Boerner on a call to discuss financial results.

Bristol Myers raised its full-year earnings forecast to 75 cents to 95 cents a share, from 60 cents to 90 cents previously. Analysts had forecast full-year earnings of around 71 cents a share.