Bristol Myers Squibb announced impressive second-quarter earnings, surpassing Wall Street expectations and prompting the company to raise its full-year guidance. The pharmaceutical giant reported revenue of $12.2 billion, up 9% from the same period last year, exceeding analysts’ forecast of $11.55 billion. Adjusted earnings per share came in at $2.07, also surpassing the expected loss of $1.63 per share.
The strong performance was driven primarily by the company’s blockbuster blood thinner Eliquis and other key drugs in its portfolio. Eliquis, which Bristol Myers co-markets with Pfizer, brought in $3.42 billion in sales, a 7% increase from the previous year. The cancer drug Opdivo also posted higher-than-expected sales of $2.39 billion.
Bristol Myers has been proactive in managing its costs and investing in its future. The company has raised its full-year revenue forecast, now expecting an increase at the “upper end” of the low single-digit range. It also upgraded its adjusted earnings guidance for 2024 to a range of 60 cents to 90 cents per share, up from the previous forecast of 40 cents to 70 cents per share.
To support these efforts, Bristol Myers is undertaking significant cost-cutting measures. The company plans to reduce expenses by $1.5 billion by 2025, which includes layoffs, the elimination of some drug programs, and site consolidations.
Despite facing challenges such as competition from generic versions of its blood cancer drug Revlimid, which saw an 8% decline in sales to $1.35 billion, Bristol Myers remains focused on launching new drugs to offset the loss of exclusivity for its major products like Eliquis and Opdivo.
The company’s performance and strategic adjustments have been well-received by investors, with shares rising nearly 8% following the announcement. As Bristol Myers continues to navigate market challenges and invest in its growth portfolio, it aims to sustain its momentum in the competitive pharmaceutical landscape.
