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Bristol-Myers (BMY) Q2 Earnings, Sales Beat on Eliquis, Opdivo
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Bristol-Myers Squibb Company (BMY - Free Report) reported strong second-quarter results. The company reported earnings of $1.93 per share, which beat the Zacks Consensus Estimate of $1.79 and increased from $1.63 reported in the year-ago quarter.
Total revenues of $11.9 billion surpassed the Zacks Consensus Estimate of $11.5 billion and increased 2% from the year-ago period. The year-over-year growth was primarily driven by in-line products (blood thinner drug Eliquis and immuno-oncology drug Opdivo) and a new product portfolio (Abecma, Opdualag and Reblozyl). Moreover, the decline in Revlimid sales was not as steep as expected.
However, shares are down in pre-market trading.
The company’s shares have gained 18.1% in the year so far against the industry's decline of 19.5%.
Image Source: Zacks Investment Research
Quarterly Details
Revenues increased 12% to $8.3 billion in the United States. However, revenues were down 16% outside the country. International revenues decreased 8% when adjusted for foreign exchange impacts primarily due to lower demand for multiple myeloma (MM) drug Revlimid as a result of generic erosion.
Total In-Line products revenues came in at $8.7 billion, up 9% from the year-ago quarter, driven by growth in demand. Within this segment, Eliquis drove growth for the company as sales increased 16% to $3.2 billion. We note that
Bristol-Myers has a collaboration agreement with Pfizer (PFE - Free Report) for Eliquis. The companies collaborated in 2007. Pfizer funds between 50% and 60% of all development costs depending on the study. 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.
Sales of immuno-oncology drug Opdivo, approved for multiple cancer indications, were up 8% year over year to $2 billion. Label expansion of the drug boosted sales driven by higher demand across multiple indications, including the Opdivo+Yervoy-based combinations for non-small cell lung cancer (NSCLC), Opdivo+Cabometyx combination for kidney cancer and Opdivo-based therapies for various gastric and esophageal cancers.
Another MM drug, Pomalyst, generated sales of $908 million, up 6% year over year.
Sales of rheumatoid arthritis drug, Orencia, grew 8% to $876 million.
Leukemia drug, Sprycel, raked in sales of $544 million, up 1% year over year.
Melanoma drug, Yervoy, contributed $525 million to the top line, up 3%.
New product portfolio revenues grew to $482 million compared with $225 million in the year-ago period, driven by higher demand for Abecma ($89 million), Opdualag ($58 million) and Reblozyl (up 34% to $172 million)
However, Revlimid revenues declined 22% to $2.5 billion from the year-ago quarter due to a loss of exclusivity primarily in international markets. Abraxane revenues declined 19% due to the entry of authorized generics.
Adjusted research and development expenses increased 2% to $2.3 billion in the quarter. Adjusted marketing, selling and administrative expenses decreased 5%. Gross margin fell to 77.1% from 79% in the quarter.
2022 Guidance
Bristol-Myers expects 2022 earnings of $7.44-$7.74. Revenues are now anticipated to be around $46 billion (earlier projection: in line with 2021). The Zacks Consensus Estimate for earnings is pegged at $7.46 per share on revenues of $46.3 billion. Revlimid sales are expected to be $9-$9.5 billion.
Key Updates
Bristol Myers will acquire clinical-stage precision oncology company Turning Point Therapeutics for $76.00 per share, which equates to a total transaction value of $4.1 billion. The offer price of $76 represents a 122% premium to Turning Point’s closing price of $34.16 on Jun 2. The acquisition is expected to close in the ongoing quarter. The deal will add TPTX’s lead asset, repotrectinib, a next-generation, potential best-in-class tyrosine kinase inhibitor (TKI) targeting the ROS1 and NTRK oncogenic drivers of NSCLC and other advanced solid tumors.
Bristol Myers Squibb Company Price, Consensus and EPS Surprise
Bristol-Myers’ performance in the second quarter of 2022 was strong as earnings and sales beat estimates. Approval of new drugs adds a new stream of revenues, which should boost growth in the coming quarters. The pipeline progress has been impressive and strategic collaborations will further expand the portfolio.
Bristol-Myers currently carries a Zacks Rank #3 (Hold).
ALKS’ loss estimates for 2022 have narrowed to 3 cents from a loss of 14 cents in the past 60 days. Alkermes surpassed earnings in all the trailing four quarters, the average being 350.48%.
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Bristol-Myers (BMY) Q2 Earnings, Sales Beat on Eliquis, Opdivo
Bristol-Myers Squibb Company (BMY - Free Report) reported strong second-quarter results. The company reported earnings of $1.93 per share, which beat the Zacks Consensus Estimate of $1.79 and increased from $1.63 reported in the year-ago quarter.
Total revenues of $11.9 billion surpassed the Zacks Consensus Estimate of $11.5 billion and increased 2% from the year-ago period. The year-over-year growth was primarily driven by in-line products (blood thinner drug Eliquis and immuno-oncology drug Opdivo) and a new product portfolio (Abecma, Opdualag and Reblozyl). Moreover, the decline in Revlimid sales was not as steep as expected.
However, shares are down in pre-market trading.
The company’s shares have gained 18.1% in the year so far against the industry's decline of 19.5%.
Image Source: Zacks Investment Research
Quarterly Details
Revenues increased 12% to $8.3 billion in the United States. However, revenues were down 16% outside the country. International revenues decreased 8% when adjusted for foreign exchange impacts primarily due to lower demand for multiple myeloma (MM) drug Revlimid as a result of generic erosion.
Total In-Line products revenues came in at $8.7 billion, up 9% from the year-ago quarter, driven by growth in demand. Within this segment, Eliquis drove growth for the company as sales increased 16% to $3.2 billion. We note that
Bristol-Myers has a collaboration agreement with Pfizer (PFE - Free Report) for Eliquis. The companies collaborated in 2007. Pfizer funds between 50% and 60% of all development costs depending on the study. 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.
Sales of immuno-oncology drug Opdivo, approved for multiple cancer indications, were up 8% year over year to $2 billion. Label expansion of the drug boosted sales driven by higher demand across multiple indications, including the Opdivo+Yervoy-based combinations for non-small cell lung cancer (NSCLC), Opdivo+Cabometyx combination for kidney cancer and Opdivo-based therapies for various gastric and esophageal cancers.
Another MM drug, Pomalyst, generated sales of $908 million, up 6% year over year.
Sales of rheumatoid arthritis drug, Orencia, grew 8% to $876 million.
Leukemia drug, Sprycel, raked in sales of $544 million, up 1% year over year.
Melanoma drug, Yervoy, contributed $525 million to the top line, up 3%.
New product portfolio revenues grew to $482 million compared with $225 million in the year-ago period, driven by higher demand for Abecma ($89 million), Opdualag ($58 million) and Reblozyl (up 34% to $172 million)
However, Revlimid revenues declined 22% to $2.5 billion from the year-ago quarter due to a loss of exclusivity primarily in international markets. Abraxane revenues declined 19% due to the entry of authorized generics.
Adjusted research and development expenses increased 2% to $2.3 billion in the quarter. Adjusted marketing, selling and administrative expenses decreased 5%. Gross margin fell to 77.1% from 79% in the quarter.
2022 Guidance
Bristol-Myers expects 2022 earnings of $7.44-$7.74. Revenues are now anticipated to be around $46 billion (earlier projection: in line with 2021). The Zacks Consensus Estimate for earnings is pegged at $7.46 per share on revenues of $46.3 billion. Revlimid sales are expected to be $9-$9.5 billion.
Key Updates
Bristol Myers will acquire clinical-stage precision oncology company Turning Point Therapeutics for $76.00 per share, which equates to a total transaction value of $4.1 billion. The offer price of $76 represents a 122% premium to Turning Point’s closing price of $34.16 on Jun 2. The acquisition is expected to close in the ongoing quarter. The deal will add TPTX’s lead asset, repotrectinib, a next-generation, potential best-in-class tyrosine kinase inhibitor (TKI) targeting the ROS1 and NTRK oncogenic drivers of NSCLC and other advanced solid tumors.
Bristol Myers Squibb Company Price, Consensus and EPS Surprise
Bristol Myers Squibb Company price-consensus-eps-surprise-chart | Bristol Myers Squibb Company Quote
Our Take
Bristol-Myers’ performance in the second quarter of 2022 was strong as earnings and sales beat estimates. Approval of new drugs adds a new stream of revenues, which should boost growth in the coming quarters. The pipeline progress has been impressive and strategic collaborations will further expand the portfolio.
Bristol-Myers currently carries a Zacks Rank #3 (Hold).
A better-ranked stock in the same space is Alkermes (ALKS - Free Report) which sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
ALKS’ loss estimates for 2022 have narrowed to 3 cents from a loss of 14 cents in the past 60 days. Alkermes surpassed earnings in all the trailing four quarters, the average being 350.48%.