Bristol Myers Squibb has managed to balance declines in its older drugs by seeing strong growth from newer products, which led to better-than-expected revenue and earnings in the second quarter.
On Thursday, the company reported adjusted earnings of $2.04 per share, beating Wall Street’s estimate of $1.60. Revenue grew 6% to $13 billion, also above the $11.7 billion analysts expected.
After a strong quarter, Bristol Myers raised its full-year outlook. CEO Chris Boerner pointed to ongoing business momentum. The company now expects revenue between $49 billion and $50 billion, up from its previous range of $46 billion to $47.5 billion. Adjusted earnings are now forecast at $6.75 to $7 per share, compared to the earlier range of $6.05 to $6.35. FactSet analysts had predicted earnings of $6.34 per share on $47.4 billion in revenue. The stock rose 2.4% on Thursday, recovering from earlier losses and outperforming the broader market.
Still, upcoming clinical data may have a bigger impact on the stock than the latest earnings. Goldman Sachs said before the report that Bristol Myers’ story depends on fourth-quarter clinical updates, especially Phase 3 results for milvexian, an anticoagulant developed with Johnson & Johnson. The firm noted that investors are watching to see if this data might be delayed until 2027, and it thinks the current stock price already assumes a positive result for the drug in patients with atrial fibrillation. With more data expected soon, Goldman expects the stock to stay volatile and is not taking a position for now.
Newer products were the main reason for the strong quarter, bringing in $7.56 billion in revenue. Citi Research pointed out that growth in these products more than made up for falling sales of older drugs.
Opdivo, a skin cancer immunotherapy, made up a large part of the growth-portfolio revenue, even though its global sales dropped 4% to $2.49 billion, continuing a decline from last quarter. The newer, faster-administered version of the drug saw its sales triple to $261 million. Boerner pointed out that a bigger share of the company’s business now comes from newer products.
The growth from new products helped balance out ongoing weakness in Bristol Myers’ older drugs. Eliquis, a blood thinner made with Pfizer, stood out in this group, with global revenue rising over 20% to $4.48 billion. Meanwhile, sales of other older products, like the former blockbuster Revlimid, dropped sharply.
On Thursday, Bristol Myers said it aims to achieve industry-leading, sustainable growth over the next decade. Like many other companies, it continues to use licensing deals and co-development partnerships to build a stronger drug pipeline.
