In its latest financial report, Bristol Myers Squibb revealed first-quarter revenue results that surpassed expectations, fueled notably by robust sales of its flagship blood thinner Eliquis and several newly introduced drugs.
However, the pharmaceutical giant reported a quarterly loss attributed to one-time expenses associated with recent business transactions. In response, it initiated a program to trim costs by $1.5 billion by 2025, with intentions to redirect these savings towards furthering drug development initiatives.
Emphasizing strategic resource allocation, Bristol Myers intends to concentrate investments on key drug brands and prioritize research and development endeavors poised for optimal returns. The reported loss for the first quarter stemmed largely from charges linked to the company’s acquisition of neuroscience firm Karuna Therapeutics for $14 billion and its collaboration with SystImmune, a subsidiary of a Chinese biotech startup, for the co-development and marketing of an experimental cancer treatment.
These endeavors come amidst mounting pressure on Bristol Myers to introduce new pharmaceuticals to offset potential revenue declines from its leading products, such as the widely-used blood cancer treatment Revlimid, and the anticipated competition for Eliquis and cancer immunotherapy Opdivo from more affordable generic alternatives.
Comparing Bristol Myers Squibb‘s first-quarter performance with analysts’ projections based on a survey by LSEG:
- Adjusted loss per share: $4.40, slightly lower than the expected $4.44.
- Revenue: $11.87 billion, surpassing the anticipated $11.46 billion
Bristol Myers incurred a net loss of $11.9 billion, or $5.89 per share, during the first quarter, a significant contrast to the $2.3 billion net income, or $1.07 per share, recorded in the same period the previous year. Adjusted for certain items, the loss per share stood at $4.40.
The reported loss includes a one-time charge of $6.30 per share linked to recent business transactions, as outlined by Bristol Myers. Despite the setback, first-quarter revenue reached $11.87 billion, marking a 5% increase from the corresponding period last year.
The company reiterated its full-year revenue outlook, anticipating a low single-digit growth. However, it revised its 2024 adjusted earnings guidance to 40 cents to 70 cents per share, reflecting the impact of recent business activities. This adjustment contrasts with the previous forecast of $7.10 to $7.40 per share, which did not incorporate charges related to the acquisitions of Karuna Therapeutics and RayzeBio, along with divestitures and other factors.
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