Bristol Myers Squibb beats earnings estimates, raises outlook as drugmaker slashes prices 

Bristol Myers Squibb on Friday reported second-quarter earnings and income that topped expectations and raised its full-year steering because the drugmaker strikes to slash costs.

The pharmaceutical big raised its full-year income forecast to a rise within the “higher finish” of the low single-digit vary. That compares to its earlier steering in April of a low single-digit enhance in gross sales. 

The corporate additionally raised its 2024 adjusted earnings steering to 60 cents to 90 cents per share, up from a earlier forecast of 40 cents to 70 cents per share. 

Shares of Bristol Myers rose practically 5% in premarket buying and selling Friday following the outcomes.

The outcomes come as Bristol Myers strikes to cut $1.5 billion in costs by 2025 and reinvest that cash into key drug manufacturers and analysis and growth packages. In April, the corporate mentioned that may contain shedding greater than 2,000 workers, culling some drug packages and consolidating its websites, amongst different efforts. 

Here’s what Bristol Myers reported for the second quarter in contrast with what Wall Avenue was anticipating, based mostly on a survey of analysts by LSEG: 

• Earnings per share: $2.07 adjusted vs. lack of $1.63 anticipated
• Income: $12.2 billion vs. $11.55 billion anticipated 

The pharmaceutical big’s income rose 9% from the identical interval a yr in the past to $12.2 billion. 

Bristol Myers posted internet revenue of $1.68 billion, or 83 cents per share, for the second quarter. That compares to internet revenue of $2.07 billion, or 99 cents per share, for the year-earlier interval. 

Excluding sure objects, its adjusted earnings per share was $2.07 for the quarter. 

The second-quarter gross sales enhance got here primarily from the corporate’s blockbuster blood thinner Eliquis and a portfolio of medication it expects to assist it ship long-term development. Amongst these remedies is the most cancers drug Opdivo, which raked in higher-than-expected gross sales for the quarter. 

Income from Bristol Myers’ blood most cancers drug Revlimid additionally topped analysts’ estimates for the interval regardless of dealing with competitors from cheaper generics. 

The drugmaker faces stress to launch new medication and offset the lack of income from Revlimid and different top-selling remedies that may eventually lose exclusivity on the market, together with Eliquis and Opdivo. 

Gross sales of Eliquis might additionally take successful in 2026, when a brand new value for the drug goes into impact for sure Medicare sufferers following negotiations with the federal authorities. These value talks, a key provision of President Joe Biden‘s Inflation Discount Act, will finish at first of August.