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Bristol-Myers (BMY) Misses on Q1 Earnings, Opdivo Sales Decline

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Bristol-Myers Squibb Company (BMY - Free Report) reported lower-than-expected results for the first quarter of 2021 as multiple myeloma (MM) drug Revlimid and immuno-oncology drug Opdivo disappointed on weak demand. 

Shares were down in pre-market trading following the earnings release.

Bristol-Myers’ shares have gained 6.4% year to date against the industry's decline of 0.6%.

 

First-quarter 2021 earnings of $1.74 per share missed the Zacks Consensus Estimate of $1.80 but increased from the year-ago quarter’s $1.72.

Total revenues of $11.07 billion fell short of the Zacks Consensus Estimate of $11.11 billion but increased 3% from the year-ago period.

Quarterly Details

Excluding COVID-19 related buying patterns from the prior year period, first-quarter revenues grew 8%. Revenues increased 4% to $7 billion in the United States and 1% outside the country. Ex-U.S. revenues were down 5% when adjusted for foreign exchange impact.

Myeloma drug, Revlimid, along with the erstwhile Celgene acquisition, contributed $2.9 billion to the top line and was the top revenue generator for Bristol-Myers. However, sales were up only 1% for the drug year over year. 

Eliquis maintained momentum for the company as sales increased 9% to $2.9 billion. We note that Bristol-Myers has a collaboration agreement with Pfizer (PFE - Free Report) for Eliquis.

Sales of immuno-oncology drug Opdivo, approved for multiple cancer indications, were down 3% year over year to $1.7 billion.

Sales of rheumatoid arthritis drug, Orencia, were up 6% to $758 million.

Another MM drug, Pomalyst posted a strong performance and generated sales of $773 million, up 8% year over year.

Leukemia drug, Sprycel, raked in sales of $470 million, down 10% year over year. Melanoma drug, Yervoy, contributed $456 million to the top line, up 15% year over year.

Abraxane generated sales of $314 million, up 5% year over year.

MM drug, Empliciti, recorded sales of $85 million, down 12% year over year.

New drugs like Reblozyl generated sales of $112 million while Inrebic generated sales of $16 million. Onureg sales came in at $15 million and Zeposia sales came in at $18 million.

Adjusted research and development (R&D) expenses in the quarter were flat at $2.2 billion. Adjusted marketing, selling and administrative expenses increased to $1.7 billion from $1.6 billion. Gross margin decreased from 79.4% to 78.1% in the quarter driven by foreign exchange.

2021 Guidance

Bristol-Myers projects 2021 earnings of $7.35-$7.55 per share. The guidance assumes revenues to increase in high single digits. The Zacks Consensus Estimate for earnings is pegged at $7.45 per share.

Key Pipeline Updates

In April, the FDA approved Opdivo in combination with fluoropyrimidine- and platinum-containing chemotherapy for the treatment of patients with advanced or metastatic gastric cancer, gastroesophageal junction cancer, and esophageal adenocarcinoma, regardless of PD-L1 expression status.

The European Commission (EC) has approved Opdivo in combination with Exelixis’ (EXEL - Free Report) Cabometyx (cabozantinib) for the first-line treatment of adults with advanced renal cell carcinoma.

In March, the company and partner bluebird bio, Inc. (BLUE - Free Report) obtained FDA approval for Abecma (idecabtagene vicleucel; ide-cel) as the first B-cell maturation antigen (BCMA)-directed chimeric antigen receptor (CAR) T cell immunotherapy for the treatment of adult patients with relapsed or refractory MM.

The FDA also approved Breyanzi (lisocabtagene maraleucel: liso-cel), a CD19-directed CAR T cell therapy for the treatment of adult patients with relapsed or refractory (R/R) large B-cell lymphoma (LBCL) after two or more lines of systemic therapy, including diffuse large B-cell lymphoma (DLBCL).

The EC also granted full Marketing Authorization to Inrebic (fedratinib) for the treatment of disease-related splenomegaly (enlarged spleen) or symptoms in adult patients with primary myelofibrosis, post-polycythaemia vera myelofibrosis or post-essential thrombocythaemia myelofibrosis.

Our Take

Bristol-Myers’ performance in the first quarter of 2021 was dismal as Opdivo sales declined. Moreover, Revlimid sales weren’t impressive either.

Bristol Myers Squibb Company Price, Consensus and EPS Surprise

 

Bristol Myers Squibb Company Price, Consensus and EPS Surprise

Bristol Myers Squibb Company price-consensus-eps-surprise-chart | Bristol Myers Squibb Company Quote

Nevertheless, the approval of new drugs adds a new stream of revenues, which should propel growth in the coming quarters. Opdivo should also pick up despite a weak performance in the first quarter on further label expansions in lucrative indications of lung cancer and gastric cancer.

Bristol-Myers currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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