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Bristol-Myers Squibb Company (BMY - Free Report) reported better-than-expected results for the fourth quarter of 2023 on the back of growth in its new product portfolio. The company reported adjusted earnings per share of $1.70, which beat the Zacks Consensus Estimate of $1.52. In the year-ago quarter, BMY posted adjusted earnings of $1.82.
Total revenues of $11.5 billion surpassed the Zacks Consensus Estimate of $11.1 billion. Revenues increased 1% from the year-ago period due to higher sales of new product portfolio, as well as Eliquis and Opdivo.
Shares are trading up following the results announcement.
The company’s shares have lost 21.2% in the past six months against the industry's growth of 1.5%.
Image Source: Zacks Investment Research
Quarterly Details
Revenues increased 1% to $8 billion in the United States due to higher sales of new product portfolio, Eliquis and Opdivo. However, lower sales of the multiple myeloma (“MM”) drug Revlimid impacted top-line growth.
International revenues were flat year over year at $3.5 billion due to generic competition for Revlimid.
Revenues from in-line and new product portfolios increased 9% to $9.8 billion.
Total in-line product revenues came in at $8.7 billion, up 5%. Within this segment, Eliquis’ sales were up 7% to $2.9 billion, beating the Zacks Consensus Estimate of $2.8 billion and our model estimate of $2.7 billion. Sales in the United States increased 11% to $1.9 billion. Revenues in international markets increased 1% but decreased 3% after adjusting for foreign exchange impacts to $975 million, primarily driven by lower average net selling prices and generic erosion in several European countries.
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.
Sales of the immuno-oncology drug Opdivo, approved for multiple cancer indications, were up 8% year over year to $2.4 billion, beating the Zacks Consensus Estimate of $2.32 billion and our estimate of $2.3 billion. Sales in the United States grew 12% due to higher demand. Revenues in the international markets were up 3%, driven by higher demand due to launches in additional indications and growth in core indications.
Sales of the rheumatoid arthritis drug Orencia increased 8% to $985 million.
Another MM drug, Pomalyst, generated sales of $890 million, up 1% year over year.
Melanoma drug Yervoy contributed $566 million to the top line, flat year over year.
Leukemia drug Sprycel generated sales of $526 million, down 9% year over year due to a 32% decline in international sales.
New product portfolio revenues were $1.1 billion, up 66% year over year, driven by higher demand for Reblozyl (up 61% to $320 million), Opdualag (up 83% to $190 million), Zeposia (up 68% to $133 million) and Breyanzi (up 84% to $101 million). Camzyos sales came in at $88 million and Sotyktu sales at $63 million. However, Abecma sales were down 20% to $100 million.
Revenues for new product portfolio surpassed both the Zacks Consensus Estimate and our estimate of $1 billion.
Revlimid revenues declined 36% to $1.4 billion from the year-ago quarter due to lower demand owing to generic erosion. Revenues surpassed the Zacks Consensus Estimate of $1.35 billion and our estimate of $1.32 billion.
Abraxane revenues were up 38% to $247 million.
Adjusted research and development expenses remained relatively flat at $2.5 billion. Adjusted marketing, selling and administrative expenses decreased 9% to $2.1 billion. Gross margin fell to 76.4% from 77.9% in the quarter.
2023 Results
Revenues for 2023 came in at $45 billion, down 2%, but beat the Zacks Consensus Estimate of $44.6 billion. Adjusted earnings per share came in at $7.51 in 2023, down from $7.70 in 2022, but beat the Zacks Consensus Estimate of $7.40.
2024 Guidance
Bristol-Myers expects adjusted earnings of $7.10-$7.40 per share in 2024. Revenues are anticipated to increase in the low single digits. The Zacks Consensus Estimate for 2024 earnings per share is $7.06.
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.
In December 2023, BMY announced that it would acquire clinical-stage biopharmaceutical company Karuna Therapeutics, Inc., which is developing drugs for psychiatric and neurological conditions. The deal is expected to strengthen BMY’s expanding position in neuroscience and add essential assets, including KarXT (xanomeline-trospium), an antipsychotic with a novel mechanism of action and differentiated efficacy and safety.
Karuna's new drug application for KarXT for the treatment of schizophrenia in adults was accepted for review by the FDA with a target action date of Sep 26, 2024. The transaction is expected to close in the first half of 2024.
BMY also announced that it will acquire RayzeBio, Inc., a clinical-stage radiopharmaceutical therapeutics (“RPT”) company with an innovation-leading position in actinium-based RPTs and a rich pipeline of potentially first-in-class and best-in-class drug development programs currently targeting solid tumors.
The acquisition is expected to enhance Bristol Myers’ leading oncology franchise and add a robust engine for delivering investigational new drugs, as well as state-of-the-art radiopharmaceutical manufacturing capabilities. The transaction is expected to close in the first half of 2024.
Our Take
Bristol-Myers reported better-than-expected fourth-quarter results. Reblozyl put up a strong performance and erosion of Revlimid sales were lower than estimated. The outlook for 2024 is encouraging as well.
Zacks Rank & Stocks to Consider
Bristol-Myers currently carries a Zacks Rank #4 (Sell).
In the past 60 days, estimates for Novo Nordisk’s 2024 earnings per share have increased from $3.20 to $3.32. Shares of NVO have surged 66.5% in the past year.
Novo Nordisk’s earnings beat estimates in two of the last four quarters, met in one and missed in the other, delivering an average surprise of 1.85%. In the previously reported quarter, Novo Nordisk’s earnings beat estimates by 7.58%.
In the past 30 days, Sarepta’s loss estimates for 2023 have improved from a loss of $6.80 per share to $6.57 per share. During the same period, earnings estimates per share for 2024 have risen from $1.71 to $2.14.
Sarepta’s earnings beat estimates in each of the last four quarters, delivering an average surprise of 48.67%. In the previous reported quarter, its earnings beat estimates by 72.29%.
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Bristol-Myers (BMY) Q4 Earnings & Sales Beat, Stock Gains
Bristol-Myers Squibb Company (BMY - Free Report) reported better-than-expected results for the fourth quarter of 2023 on the back of growth in its new product portfolio. The company reported adjusted earnings per share of $1.70, which beat the Zacks Consensus Estimate of $1.52. In the year-ago quarter, BMY posted adjusted earnings of $1.82.
Total revenues of $11.5 billion surpassed the Zacks Consensus Estimate of $11.1 billion. Revenues increased 1% from the year-ago period due to higher sales of new product portfolio, as well as Eliquis and Opdivo.
Shares are trading up following the results announcement.
The company’s shares have lost 21.2% in the past six months against the industry's growth of 1.5%.
Image Source: Zacks Investment Research
Quarterly Details
Revenues increased 1% to $8 billion in the United States due to higher sales of new product portfolio, Eliquis and Opdivo. However, lower sales of the multiple myeloma (“MM”) drug Revlimid impacted top-line growth.
International revenues were flat year over year at $3.5 billion due to generic competition for Revlimid.
Revenues from in-line and new product portfolios increased 9% to $9.8 billion.
Total in-line product revenues came in at $8.7 billion, up 5%. Within this segment, Eliquis’ sales were up 7% to $2.9 billion, beating the Zacks Consensus Estimate of $2.8 billion and our model estimate of $2.7 billion. Sales in the United States increased 11% to $1.9 billion. Revenues in international markets increased 1% but decreased 3% after adjusting for foreign exchange impacts to $975 million, primarily driven by lower average net selling prices and generic erosion in several European countries.
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.
Sales of the immuno-oncology drug Opdivo, approved for multiple cancer indications, were up 8% year over year to $2.4 billion, beating the Zacks Consensus Estimate of $2.32 billion and our estimate of $2.3 billion. Sales in the United States grew 12% due to higher demand. Revenues in the international markets were up 3%, driven by higher demand due to launches in additional indications and growth in core indications.
Sales of the rheumatoid arthritis drug Orencia increased 8% to $985 million.
Another MM drug, Pomalyst, generated sales of $890 million, up 1% year over year.
Melanoma drug Yervoy contributed $566 million to the top line, flat year over year.
Leukemia drug Sprycel generated sales of $526 million, down 9% year over year due to a 32% decline in international sales.
New product portfolio revenues were $1.1 billion, up 66% year over year, driven by higher demand for Reblozyl (up 61% to $320 million), Opdualag (up 83% to $190 million), Zeposia (up 68% to $133 million) and Breyanzi (up 84% to $101 million). Camzyos sales came in at $88 million and Sotyktu sales at $63 million. However, Abecma sales were down 20% to $100 million.
Revenues for new product portfolio surpassed both the Zacks Consensus Estimate and our estimate of $1 billion.
Revlimid revenues declined 36% to $1.4 billion from the year-ago quarter due to lower demand owing to generic erosion. Revenues surpassed the Zacks Consensus Estimate of $1.35 billion and our estimate of $1.32 billion.
Abraxane revenues were up 38% to $247 million.
Adjusted research and development expenses remained relatively flat at $2.5 billion. Adjusted marketing, selling and administrative expenses decreased 9% to $2.1 billion. Gross margin fell to 76.4% from 77.9% in the quarter.
2023 Results
Revenues for 2023 came in at $45 billion, down 2%, but beat the Zacks Consensus Estimate of $44.6 billion. Adjusted earnings per share came in at $7.51 in 2023, down from $7.70 in 2022, but beat the Zacks Consensus Estimate of $7.40.
2024 Guidance
Bristol-Myers expects adjusted earnings of $7.10-$7.40 per share in 2024. Revenues are anticipated to increase in the low single digits. The Zacks Consensus Estimate for 2024 earnings per share is $7.06.
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.
In December 2023, BMY announced that it would acquire clinical-stage biopharmaceutical company Karuna Therapeutics, Inc., which is developing drugs for psychiatric and neurological conditions. The deal is expected to strengthen BMY’s expanding position in neuroscience and add essential assets, including KarXT (xanomeline-trospium), an antipsychotic with a novel mechanism of action and differentiated efficacy and safety.
Karuna's new drug application for KarXT for the treatment of schizophrenia in adults was accepted for review by the FDA with a target action date of Sep 26, 2024. The transaction is expected to close in the first half of 2024.
BMY also announced that it will acquire RayzeBio, Inc., a clinical-stage radiopharmaceutical therapeutics (“RPT”) company with an innovation-leading position in actinium-based RPTs and a rich pipeline of potentially first-in-class and best-in-class drug development programs currently targeting solid tumors.
The acquisition is expected to enhance Bristol Myers’ leading oncology franchise and add a robust engine for delivering investigational new drugs, as well as state-of-the-art radiopharmaceutical manufacturing capabilities. The transaction is expected to close in the first half of 2024.
Our Take
Bristol-Myers reported better-than-expected fourth-quarter results. Reblozyl put up a strong performance and erosion of Revlimid sales were lower than estimated. The outlook for 2024 is encouraging as well.
Zacks Rank & Stocks to Consider
Bristol-Myers currently carries a Zacks Rank #4 (Sell).
A couple of better-ranked stocks in the healthcare industry are Novo Nordisk (NVO - Free Report) and Sarepta Therapeutics (SRPT - Free Report) . NVO currently sports a Zacks Rank #1 (Strong Buy) and SRPT carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Novo Nordisk’s 2024 earnings per share have increased from $3.20 to $3.32. Shares of NVO have surged 66.5% in the past year.
Novo Nordisk’s earnings beat estimates in two of the last four quarters, met in one and missed in the other, delivering an average surprise of 1.85%. In the previously reported quarter, Novo Nordisk’s earnings beat estimates by 7.58%.
In the past 30 days, Sarepta’s loss estimates for 2023 have improved from a loss of $6.80 per share to $6.57 per share. During the same period, earnings estimates per share for 2024 have risen from $1.71 to $2.14.
Sarepta’s earnings beat estimates in each of the last four quarters, delivering an average surprise of 48.67%. In the previous reported quarter, its earnings beat estimates by 72.29%.