Bristol Myers Squibb beats revenue and implements $1.5 billion in cost cuts as the corporate posts a quarterly loss

Bristol Myers Squibb on Thursday reported first-quarter revenue that beat expectations as sales of its popular blood cancer drug Revlimid and blockbuster blood thinner Eliquis got here in higher than expected.

However, the pharmaceutical company posted a quarterly loss resulting from one-time charges related to its recently concluded deals. The company also said it might cut costs by $1.5 billion by 2025 and reinvest the cash into drug development.

Bristol Myers will lay off 2,200 employees this yr, end some drug programs, eliminate open positions, consolidate its locations and reduce management levels, amongst other cost savings. The company said it might prioritize investments in its key drug brands, optimize operations across the corporate and focus its resources on research and development programs that would deliver the very best returns to the corporate and the best health advantages to patients.

Two-thirds of the savings are tied to drug research and development, Bristol Myers executives said during a conference call Thursday. The company has discontinued about 12 drug programs to this point and can consider discontinuing additional programs all year long, Dr. Samit Hirawat, Chief Medical Officer of Bristol Myers.

Bristol Myers CEO Chris Boerner added that the vast majority of savings will come from existing internal operations slightly than newly acquired corporations.

“We are taking important actions to effectively navigate the decade,” Boerner said throughout the call. “Our management team has been focused on ensuring the discipline needed to achieve both this year and position ourselves for the longer term.”

For the primary quarter, Bristol Myers said the fees weighing on the corporate were primarily resulting from this Acquisition valued at $14 billion the neuroscientific drug manufacturer Karuna Therapeutics and the Cooperation agreement with SystImmune, a subsidiary of a Chinese biotech startup, to jointly develop and commercialize its experimental cancer treatment.

These deals come as Bristol Myers faces pressure to bring latest drugs to market and offset potential lost sales of its top-selling treatments. The company's popular blood cancer drug Revlimid – and eventually Eliquis and cancer immunotherapy Opdivo – face competition from cheaper copycats.

Shares of Bristol Myers fell greater than 7% on Tuesday.

Here's what Bristol Myers reported for the primary quarter in comparison with Wall Street's expectations, based on an LSEG analyst survey:

• Loss per share: $4.40 adjusted versus an expected lack of $4.44
• Revenue: $11.87 billion versus expected $11.46 billion

Bristol Myers, considered one of the world's largest pharmaceutical corporations, reported a first-quarter net lack of $11.9 billion, or $5.89 per share. By comparison, net income for a similar period last yr was $2.3 billion, or $1.07 per share.

Excluding certain items, adjusted loss per share was $4.40 for the period.

The loss reflects a one-time charge of $6.30 per share related to recently accomplished deals, Bristol Myers said in a news release.

Bristol Myers reported first-quarter revenue of $11.87 billion, up 5% from the identical period last yr.

The company reiterated its full-year revenue forecast for a low single-digit increase. But Bristol Myers cut its 2024 adjusted earnings forecast to 40 cents to 70 cents per share to reflect the impact of recent deals.

This compares to previous guidance of $7.10 to $7.40 per share, which excluded costs related to the acquisitions of Karuna Therapeutics and radiopharmaceutical company RayzeBio, in addition to divestitures and other items.

Bristol Myers said first-quarter sales growth was primarily resulting from higher sales of Eliquis and a few of its newer drugs.

Eliquis reported revenue of $3.72 billion within the quarter, up 9% from the identical period last yr. Analysts had expected Eliquis to generate $3.59 billion in sales, in accordance with estimates from FactSet.

Eliquis, with whom Bristol Myers shares Pfizer, is among the many first 10 drugs for which pricing negotiations are ongoing with the federal Medicare program. The blood thinner is predicted to lose its market exclusivity by 2028.

The impact of those negotiations on Eliquis stays unclear, Bristol Myers executives said throughout the call. The final negotiated price for the drug can be published later this yr and can take effect in 2026. The company then expects a decline in sales and profits.

Meanwhile, Revlimid posted revenue of $1.67 billion, down 5% from the identical period last yr.

But that beat analysts' sales expectations of $1.22 billion for the drug, in accordance with FactSet estimates.

Anemia drug Reblozyl and advanced melanoma treatment Opdualag also posted sales growth in the primary quarter.

Reblozyl reported revenue of $354 million, up 72% from the identical period last yr. Analysts had expected revenue of $330.8 million, in accordance with FactSet.

Opdualag reported first-quarter revenue of $206 million, up 76% from the identical period last yr. Analysts had expected revenue of $206.5 million, in accordance with FactSet estimates.

The performance of other latest drugs fell in need of Wall Street expectations.

Abecma, a cell therapy for a rare blood cancer called multiple myeloma, had sales of $82 million within the quarter. According to FactSet, analysts had expected sales of $112.6 million.

The U.S. Food and Drug Administration expanded its approval for this drug earlier this month, allowing patients with multiple myeloma to make use of it as an earlier line of treatment.

An older drug, Opdivo, posted sales of $2.07 billion within the quarter, down 6% from the primary quarter of 2023. Analysts had expected the drug to post sales of $2.3 billion for the period, in accordance with FactSet estimates.