Bristol Myers Squibb (BMY) topped third-quarter estimates on Wednesday as two cancer treatments helped drive growth, but BMY stock toppled to a 16-month low as Revlimid generics wait in the wings.
The company credited cancer drugs Revlimid and Opdivo, as well as blood thinner Eliquis for its strong growth. Revlimid and Eliquis tacked on double-digit growth. In response, the drug giant raised the low end of its full-year earnings outlook by a nickel.
Among its growth products, Bristol Myers noted double-digit declines for cancer treatments Abraxane and Empliciti. Abraxane was originally developed by biotech company Celgene before its Bristol Myers takeover in late 2019.
BMY Stock Falls Despite Beat
During the period ended Sept. 30, Bristol Myers earned $2 per share on $11.62 billion in sales. On a year-over-year basis, adjusted profit surged 23% and beat forecasts by 8 cents. Sales grew 10% and were just a hair above BMY stock analysts’ view for $11.61 billion.
Revlimid sales advanced 11% to $3.35 billion. Eliquis and Opdivo brought in $2.41 billion and $1.91 billion, respectively. Eliquis sales increased 15% and Opdivo sales rose 7%.
Revenue from new products Reblozyl and Inrebic soared a respective 67% and 69%, though the growth came from low bases. Reblozyl is a blood-disease treatment from Bristol and Acceleron Pharma (XLRN). The latter is being acquired by Bristol competitor Merck (MRK). Inrebic treats a bone marrow cancer called myelofibrosis.
Another new treatment, Bluebird Bio (BLUE)-partnered Abecma generated $71 million. Abecma is a CAR-T drug that treats late-stage multiple myeloma, a blood cancer.
On the bearish side for BMY stock, Abraxane sales declined 22% and Empliciti sales fell 15% to a respective $266 million and $82 million.
Revlimid Competition Is Looming
Edward Jones analyst Ashtyn Evans called the quarter “solid” for Bristol Myers. She noted the substantial increases for Reblozyl and Abecma. But she reiterated her hold rating on BMY stock.
“Despite the strong results and continued progress in the company’s new drug pipeline, we continue to believe that sales growth for Bristol will be challenging once the patent protection for Revlimid expires next year,” she said in a report.
For the year, Bristol Myers expects worldwide sales to increase by a high-single digit percentage. BMY stock analysts called for $46.47 billion in sales, a 9.3% pop. The company also expects to earn $7.40-$7.55 per share vs. analysts’ forecast for $7.47 a share.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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