Bristol Myers Squibb
stock fell Thursday after the drugmaker reported lower-than-expected second-quarter sales and cut its financial outlook based on competition from generic alternatives.
Shares of
Bristol Myers
(ticker: BMY) fell 3% to $61.47.
The biopharmaceutical product manufacturer posted adjusted profit of $1.75 a share on sales of $11.2 billion in the second quarter, down 5.6% from a year earlier. Analysts tracked by FactSet were looking for earnings of $1.98 a share on revenue of $11.8 billion.
Lower-than-expected sales of the cancer-fighting drugs Revlimid and Pomalyst drove the shortfall. From the June 2022 quarter, sales of Revlimid and Pomalyst were off 41% and 7%, respectively. The company cited generic competition as well as more patients receiving donated drugs from its foundation for the declines.
Revlimid sales are now forecast at about $5.5 billion for the year, down from prior expectations of $6.5 billion.
Revenue from Eliquis, a drug that prevents blood clots, also took at hit, dropping 1% from the same quarter last year. The figure was dragged down by competition from generic rivals as well as lower average net selling prices.
“Clearly this was a disappointing quarter, and not just due to Revlimid generic erosion,” said William Blair analyst Matt Phipps in a note.
Still, Phipps maintained his Outperform rating on the stock, citing Bristol Myer’s new product portfolio, which made up $862 million in sales. He doesn’t have a price target.
Bristol Myers
now estimates 2023 revenue to fall by low single-digit percentages versus an approximate 2% increase that was forecast in April. Adjusted profit for the year was estimated in the range of $7.35 to $7.65 a share, down from a prior forecast of $7.95 to $8.25 a share.
Write to Karishma Vanjani at [email protected].
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