On December 27, 2023, the Bristol Myers Squibb R&D Center at the Cambridge Crossing in Cambridge, Massachusetts.
Adam Glanzman | Bloomberg | Getty Images
Bristol Myers Squibb It will cut costs by the end of 2027 by $2 billion and expand its ongoing cost saving efforts to map a path to long-term growth, it said Thursday.
Bristol Myers said savings will be driven by organizational change and efforts to simplify operations and enable the company to invest in new science and medicine brands that are expected to achieve growth.
The pharmaceutical giant still plans to cut costs by $1.5 billion by the end of 2025 and remit the money to drug development. first Announce The cuts were in April and expanded with Thursday’s announcement.
The company is preparing to offset the loss of revenue from its best-selling treatments planned to lose proprietary in the market, including its shocking blood-thinning Eliquis and cancer immunotherapy Opdivo.
Also Thursday, Bristol Myers Squibb released its full-year 2025 guide that didn’t meet Wall Street expectations as some of the company’s older drugs face competition for cheap generic drugs . These include four drugs for different cancers: Revlimid, Pomalyst, Sprycel and Abraxane.
Bristol Myers expects revenue to be around $45.5 billion, lower than the $47.36 billion expected by analysts surveyed by LSEG.
The company’s revenue guide also reflects the expected negative impact of Forex at about $500 million.
The drugmaker expects adjusted earnings per share to be between $6.55 and $6.85. Analysts surveyed by LSEG expect adjusted earnings of $6.92 per share.
Despite the view, Bristol Myers reported revenues and adjusted revenues for the fourth quarter that blow up expectations for Eliquis and the company’s so-called drug growth portfolio.
Here’s what Bristol Myers reported in the fourth quarter, and compared to Wall Street’s expectations, according to LSEG’s survey of analysts:
- Earnings per share: $1.67 adjusted with expected $1.46
- income: $12.34 billion vs. $11.57 billion
In the fourth quarter, Bristol Myers had net income of $72 million, 4 cents a share. By comparison, net income was $1.8 billion, or 87 cents per share.
In addition to some items, it reported adjusted earnings per share for the quarter.
The drug giant’s revenue grew 8% from a year ago to $12.34 billion.
Eliquis booked $3.2 billion in sales this quarter, up 11% from the same period last year. That exceeded analysts’ expectations of $3.03 billion, according to estimates compiled by StreetAccount.
Bristol Myers shared thin blood Boringmarket exclusivity is expected to be lost by 2028.
Eliquis sales may also take a hit in 2026 Prices for new negotiations Because the drug is effective for certain Medicare patients after negotiations with the federal government. These price negotiations are key provisions of the Inflation Reduction Act.
this The second round of negotiations The target is 15 more drugs and new prices will be set, which will take effect in 2028. Among them is Pomalyst, a drug used to treat blood cancers called multiple myeloma and cancers developed by people with HIV.
PoMalyst brought in $823 million during this period, down 8% from the annual maturity. Sprycel booked $198 million in sales this quarter, down 62% from the same period a year ago. Abraxane received $174 million in revenue in the fourth quarter, down 30% from the same quarter in 2023.
Revlimid received $1.34 billion in sales in the fourth quarter, down 8% from the same period last year. That exceeded analysts’ revenue estimates of $10 billion, according to StreetAccount.
The company’s growth portfolio’s revenue was $6.36 billion in the fourth quarter, up 21% from the annual maturity.
Opdivo brought in $2.48 billion in revenue in the fourth quarter, up 4% from the full-year period. StreetAccount said it was an estimate of $2.51 billion for analysts in the quarter.
