We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Bristol-Myers (BMY) Q1 Loss Narrower Than Expected, Sales Beat
Read MoreHide Full Article
Bristol-Myers Squibb Company (BMY - Free Report) reported an adjusted loss per share of $4.40, narrower than the Zacks Consensus Estimate of a loss of $4.53 per share. In the year-ago quarter, BMY posted adjusted earnings per share of $2.05.
The year-over-year deterioration can be attributed to higher acquired IPRD costs, reflecting the impact of recent acquisitions and an increase in operating expenses. The bottom-line was also negatively impacted due to higher interest expenses resulting from new debt issuance to fund recent acquisitions.
Total revenues of $11.9 billion surpassed the Zacks Consensus Estimate of $11.4 billion. Revenues also increased 5% from the year-ago period’s level, primarily driven by Eliquis, Reblozyl and Opdualag’s encouraging performance. However, this was partially offset by a decline in the sales of Opdivo and Revlimid.
The stock is trading down following the quarterly earnings release.
The company’s shares have lost 4.8% year to date compared with the industry's decline of 9.4%.
Image Source: Zacks Investment Research
Quarterly Details
Revenues increased 7% to $8.5 billion in the United States due to higher sales of Eliquis, Reblozyl and Opdualag. However, Opdivo revenues were down 10% to $1.2 billion due to inventory and the timing of orders. Lower sales of the multiple myeloma (MM) drug Revlimid also adversely impacted top-line growth.
International revenues were flat year over year at $3.4 billion due to lower average net selling prices. The negative impact from foreign exchange was 5%.
Growth Portfolio Revenues
Revenues from the Growth portfolio totaled $4.8 billion, up 8% from the year-ago level. The top line grew 11% year over year when adjusted for foreign exchange impacts. Growth Portfolio revenues were primarily driven by higher demand for Reblozyl, Opdualag, Yervoy, Camzyos, and Sotyktu, partially offset by Opdivo and Abecma.
Total sales of the immuno-oncology drug Opdivo, approved for multiple cancer indications, went down 6% year over year to $2.1 billion. The figure also missed the Zacks Consensus Estimate and our estimate of $2.3 billion and $2.33 billion, respectively.
Sales of the rheumatoid arthritis drug Orencia increased 4% to $798 million. Melanoma drug Yervoy contributed $583 million to the top line, up 15% year over year.
Reblozyl sales surged 72% year over year to $354 million. The drug’s label was expanded in the European Union to include the first-line treatment of adult patients with transfusion-dependent anemia due to very low, low and intermediate-risk myelodysplastic syndromes.
Reblozyl sales beat the Zacks Consensus Estimate and our estimate of $325 million and $341.5 million, respectively.
Opdualag sales jumped 76% to $206 million.
Zeposia sales rose 41% to $110 million and Breyanzi sales rallied 51% to reach $107 million. Camzyos and Sotyktu sales totaled $84 million and $44 million, respectively.
Augtyro and Krazati raked in sales of $6 million and $21 million, respectively. However, Abecma sales declined 44% to $82 million.
Legacy Portfolio Revenues
Revenues for the Legacy Portfolio in the first quarter totaled $7.1 billion, up 2% year over year. This was driven by a 9% increase in global sales of blood thinner drug Eliquis.
Eliquis sales of $3.7 billion also beat the Zacks Consensus Estimate and our model estimate of $3.6 billion.
Please note that Bristol-Myers has a collaboration agreement with Pfizer (PFE - Free Report) for Eliquis. The companies collaborated in 2007. Profits and losses are shared equally on a global basis, except in certain countries where Pfizer commercializes Eliquis and pays BMY a sales-based fee.
MM drug, Pomalyst, generated sales of $865 million, up 4% year over year.
Leukemia drug Sprycel generated sales of $374 million, down 13% year over year due to a 34% decline in international sales.
Revlimid revenues declined 5% to $1.67 billion. This was due to lower demand owing to generic erosion. The top line surpassed the Zacks Consensus Estimate of $1.23 billion and our estimate of $1.16 billion. Abraxane revenues declined 9% to $217 million.
Costs Increase
Gross margin fell to 75.5% from 77.8% in the year-ago quarter due to product mix. Adjusted research and development expenses increased 6% to $2.3 billion, primarily due to the impact of recent acquisitions and higher costs to support the overall portfolio. Adjusted marketing, selling and administrative expenses increased 13% to $2 billion, primarily due to the timing of spend and the impact of recent acquisitions.
Acquired IPRD increased to $12.9 billion from $75 million, primarily due to the Karuna asset acquisition and SystImmune collaboration.
2024 Guidance Update
Bristol-Myers now expects adjusted earnings in the range of $0.40-$0.70 in 2024, down from the earlier estimate of $7.10-$7.40, to reflect the dilutive impact of recent acquisitions and collaborations. The Zacks Consensus Estimate for 2024 earnings per share is pegged at $0.61.
Revenues are anticipated to increase in the low single digits (no change).
Bristol Myers Squibb Company Price, Consensus and EPS Surprise
In January 2024, BMY acquired Mirati Therapeutics, further diversifying its oncology portfolio. The acquisition added commercialized lung cancer medicine, Krazati, to its oncology portfolio, as well as several promising clinical assets.
During the quarter, Bristol Myers acquired Karuna Therapeutics, Inc., Bristol Myers Squibb expanded its position in neuroscience and added important assets, including KarXT — an antipsychotic with a novel mechanism of action and differentiated efficacy and safety. The candidate is under review in the United States for the treatment of schizophrenia in adults, with a target action date of Sep 26, 2024.
BMY also acquired clinical-stage radiopharmaceutical therapeutics company RayzeBio, Inc. and gained a rich pipeline of potentially first-in-class and best-in-class drug development programs currently targeting solid tumors.
The company also completed an exclusive license and collaboration agreement with SystImmune to develop and commercialize a potentially first-in-class EGFRxHER3 bispecific antibody-drug conjugate with the potential to treat a variety of solid tumors, including lung and breast cancers.
Our Take
Bristol-Myers’ reported better-than-expected first-quarter results as adjusted loss was narrower than expected and sales beat estimates. However, the decline in Opdivo sales was a dampener. Revlimid is already facing generic competition and Eliquis, too, is likely to face challenges later.
It remains to be seen how the growth in new drugs compensates for this decline in sales of these blockbuster drugs. The uptake of Reblozyl has been strong but it is still a long way to go for BMY when its new drugs start contributing significantly.
Along with the earnings release, Bristol Myers also announced that it is undertaking a strategic productivity initiative that will drive approximately $1.5 billion in cost savings by the end of 2025.
Zacks Rank & Stocks to Consider
Bristol-Myers currently carries a Zacks Rank #3 (Hold).
In the past 60 days, estimates for ADMA Biologics’ 2024 earnings per share (EPS) have improved from 22 to 30 cents. Shares of ADMA have rallied 40.9% year to date.
ADMA’s earnings beat estimates in three of the trailing four quarters and met the same once, delivering an average surprise of 85.00%.
In the past 60 days, estimates for ANI Pharmaceuticals’ 2024 EPS have improved from $4.12 to $4.43. Shares of ANIP have jumped 17.3% year to date.
ANIP’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 109.06%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Shutterstock
Bristol-Myers (BMY) Q1 Loss Narrower Than Expected, Sales Beat
Bristol-Myers Squibb Company (BMY - Free Report) reported an adjusted loss per share of $4.40, narrower than the Zacks Consensus Estimate of a loss of $4.53 per share. In the year-ago quarter, BMY posted adjusted earnings per share of $2.05.
The year-over-year deterioration can be attributed to higher acquired IPRD costs, reflecting the impact of recent acquisitions and an increase in operating expenses. The bottom-line was also negatively impacted due to higher interest expenses resulting from new debt issuance to fund recent acquisitions.
Total revenues of $11.9 billion surpassed the Zacks Consensus Estimate of $11.4 billion. Revenues also increased 5% from the year-ago period’s level, primarily driven by Eliquis, Reblozyl and Opdualag’s encouraging performance. However, this was partially offset by a decline in the sales of Opdivo and Revlimid.
The stock is trading down following the quarterly earnings release.
The company’s shares have lost 4.8% year to date compared with the industry's decline of 9.4%.
Image Source: Zacks Investment Research
Quarterly Details
Revenues increased 7% to $8.5 billion in the United States due to higher sales of Eliquis, Reblozyl and Opdualag. However, Opdivo revenues were down 10% to $1.2 billion due to inventory and the timing of orders. Lower sales of the multiple myeloma (MM) drug Revlimid also adversely impacted top-line growth.
International revenues were flat year over year at $3.4 billion due to lower average net selling prices. The negative impact from foreign exchange was 5%.
Growth Portfolio Revenues
Revenues from the Growth portfolio totaled $4.8 billion, up 8% from the year-ago level. The top line grew 11% year over year when adjusted for foreign exchange impacts. Growth Portfolio revenues were primarily driven by higher demand for Reblozyl, Opdualag, Yervoy, Camzyos, and Sotyktu, partially offset by Opdivo and Abecma.
Total sales of the immuno-oncology drug Opdivo, approved for multiple cancer indications, went down 6% year over year to $2.1 billion. The figure also missed the Zacks Consensus Estimate and our estimate of $2.3 billion and $2.33 billion, respectively.
Sales of the rheumatoid arthritis drug Orencia increased 4% to $798 million.
Melanoma drug Yervoy contributed $583 million to the top line, up 15% year over year.
Reblozyl sales surged 72% year over year to $354 million. The drug’s label was expanded in the European Union to include the first-line treatment of adult patients with transfusion-dependent anemia due to very low, low and intermediate-risk myelodysplastic syndromes.
Reblozyl sales beat the Zacks Consensus Estimate and our estimate of $325 million and $341.5 million, respectively.
Opdualag sales jumped 76% to $206 million.
Zeposia sales rose 41% to $110 million and Breyanzi sales rallied 51% to reach $107 million. Camzyos and Sotyktu sales totaled $84 million and $44 million, respectively.
Augtyro and Krazati raked in sales of $6 million and $21 million, respectively.
However, Abecma sales declined 44% to $82 million.
Legacy Portfolio Revenues
Revenues for the Legacy Portfolio in the first quarter totaled $7.1 billion, up 2% year over year. This was driven by a 9% increase in global sales of blood thinner drug Eliquis.
Eliquis sales of $3.7 billion also beat the Zacks Consensus Estimate and our model estimate of $3.6 billion.
Please note that Bristol-Myers has a collaboration agreement with Pfizer (PFE - Free Report) for Eliquis. The companies collaborated in 2007. Profits and losses are shared equally on a global basis, except in certain countries where Pfizer commercializes Eliquis and pays BMY a sales-based fee.
MM drug, Pomalyst, generated sales of $865 million, up 4% year over year.
Leukemia drug Sprycel generated sales of $374 million, down 13% year over year due to a 34% decline in international sales.
Revlimid revenues declined 5% to $1.67 billion. This was due to lower demand owing to generic erosion. The top line surpassed the Zacks Consensus Estimate of $1.23 billion and our estimate of $1.16 billion. Abraxane revenues declined 9% to $217 million.
Costs Increase
Gross margin fell to 75.5% from 77.8% in the year-ago quarter due to product mix. Adjusted research and development expenses increased 6% to $2.3 billion, primarily due to the impact of recent acquisitions and higher costs to support the overall portfolio. Adjusted marketing, selling and administrative expenses increased 13% to $2 billion, primarily due to the timing of spend and the impact of recent acquisitions.
Acquired IPRD increased to $12.9 billion from $75 million, primarily due to the Karuna asset acquisition and SystImmune collaboration.
2024 Guidance Update
Bristol-Myers now expects adjusted earnings in the range of $0.40-$0.70 in 2024, down from the earlier estimate of $7.10-$7.40, to reflect the dilutive impact of recent acquisitions and collaborations. The Zacks Consensus Estimate for 2024 earnings per share is pegged at $0.61.
Revenues are anticipated to increase in the low single digits (no change).
Bristol Myers Squibb Company Price, Consensus and EPS Surprise
Bristol Myers Squibb Company price-consensus-eps-surprise-chart | Bristol Myers Squibb Company Quote
Recent Acquisitions
In January 2024, BMY acquired Mirati Therapeutics, further diversifying its oncology portfolio. The acquisition added commercialized lung cancer medicine, Krazati, to its oncology portfolio, as well as several promising clinical assets.
During the quarter, Bristol Myers acquired Karuna Therapeutics, Inc., Bristol Myers Squibb expanded its position in neuroscience and added important assets, including KarXT — an antipsychotic with a novel mechanism of action and differentiated efficacy and safety. The candidate is under review in the United States for the treatment of schizophrenia in adults, with a target action date of Sep 26, 2024.
BMY also acquired clinical-stage radiopharmaceutical therapeutics company RayzeBio, Inc. and gained a rich pipeline of potentially first-in-class and best-in-class drug development programs currently targeting solid tumors.
The company also completed an exclusive license and collaboration agreement with SystImmune to develop and commercialize a potentially first-in-class EGFRxHER3 bispecific antibody-drug conjugate with the potential to treat a variety of solid tumors, including lung and breast cancers.
Our Take
Bristol-Myers’ reported better-than-expected first-quarter results as adjusted loss was narrower than expected and sales beat estimates. However, the decline in Opdivo sales was a dampener. Revlimid is already facing generic competition and Eliquis, too, is likely to face challenges later.
It remains to be seen how the growth in new drugs compensates for this decline in sales of these blockbuster drugs. The uptake of Reblozyl has been strong but it is still a long way to go for BMY when its new drugs start contributing significantly.
Along with the earnings release, Bristol Myers also announced that it is undertaking a strategic productivity initiative that will drive approximately $1.5 billion in cost savings by the end of 2025.
Zacks Rank & Stocks to Consider
Bristol-Myers currently carries a Zacks Rank #3 (Hold).
A couple of better-ranked stocks in the biotech sector are ADMA Biologics, Inc. (ADMA - Free Report) and ANI Pharmaceuticals, Inc. (ANIP - Free Report) , both sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for ADMA Biologics’ 2024 earnings per share (EPS) have improved from 22 to 30 cents. Shares of ADMA have rallied 40.9% year to date.
ADMA’s earnings beat estimates in three of the trailing four quarters and met the same once, delivering an average surprise of 85.00%.
In the past 60 days, estimates for ANI Pharmaceuticals’ 2024 EPS have improved from $4.12 to $4.43. Shares of ANIP have jumped 17.3% year to date.
ANIP’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 109.06%.