Eliquis and new drugs aid Bristol Myers Squibb in surpassing earnings estimates and raising outlook.

• Eliquis and a portfolio of drugs are expected to deliver long-term growth, resulting in third-quarter earnings and revenue that surpassed expectations.
• The pharmaceutical giant also raised its full-year revenue and adjusted earnings forecast.
• Bristol Myers plans to cut $1.5 billion in expenses by 2025 and allocate the funds towards strengthening its key drug brands and advancing research and development initiatives.

Eliquis and a portfolio of drugs contributed to the company's third-quarter earnings and revenue exceeding Wall Street's expectations on Thursday.

Bristol Myers raised its full-year revenue guidance for the year, anticipating sales to increase by approximately 5%. Previously, the pharmaceutical giant predicted sales growth in the "upper end" of the low single-digit range.

The company updated its 2024 adjusted earnings guidance to a range of 75 cents to 95 cents per share, an increase from the previous forecast of 60 cents to 90 cents per share.

Bristol Myers is planning to reduce its costs by $1.5 billion by 2025 and allocate the funds towards strengthening its key drug brands and research and development programs. This will entail cutting more than 2,000 employees, eliminating certain drug programs, and consolidating its facilities, among other measures.

Shares of the company rose more than 2% in premarket trading Thursday.

Based on a survey of analysts by LSEG, the actual results of Bristol Myers for the third quarter differed from Wall Street's expectations.

• Earnings per share: $1.80 adjusted vs. $1.49 expected
• Revenue: $11.89 billion vs. $11.28 billion expected

In the third quarter, Bristol Myers reported a net income of $1.21 billion, which amounts to 60 cents per share. This is in contrast to the net income of $1.93 billion, or 93 cents per share, recorded in the year-earlier period.

The adjusted earnings per share for the quarter was reported as $1.80, excluding certain items.

The revenue of the pharmaceutical giant increased by 8% from the previous year to $11.89 billion.

Eliquis and the company's "Growth Portfolio" of drugs, including Opdivo, contributed to the increase in revenue. However, this was partially offset by the leukemia treatment Sprycel, which is facing generic competition due to its loss of exclusivity.

The company is preparing to offset the loss in revenue from the loss of exclusivity of top-selling treatments such as Eliquis, Opdivo, and Revlimid, a blood cancer treatment.

The negotiations with the federal government for a new price for Eliquis drug could lead to a decline in sales in 2026, particularly for certain Medicare patients. The first round of price talks under President Joe Biden's Inflation Reduction Act concluded in the summer.

In more than seven decades, the Food and Drug Administration has approved a novel type of treatment for schizophrenia, which is highly anticipated by Bristol Myers Squibb.

Eliquis, new drugs post growth

Eliquis exceeded analysts' expectations by booking $3 billion in sales for the quarter, which was 11% higher than the previous year.

By 2028, the blood thinner that Bristol Myers currently shares with others is predicted to lose its exclusive market status.

Despite a 1% decline in sales from the previous year, Revlimid exceeded analysts' revenue expectations by $1.29 billion.

The company's Growth Portfolio generated $5.8 billion in revenue during the third quarter, representing a 18% increase from the previous year.

The increase in demand for anemia drug Reblozyl contributed to its revenue of $447 million in the third quarter, which was 80% higher than the same period last year. Analysts had predicted that the treatment would generate $435 million in revenue.

During the third quarter, the Growth Portfolio's revenue was boosted by the use of Opdualag for advanced melanoma treatment, Breyanzi for lymphoma treatment, and Camzyos for heart conditions, as stated by the company.

According to StreetAccount, Breyanzi and Camzyos exceeded analysts' sales expectations, while Opdualag failed to meet estimates.

While Opdivo generated $2.36 billion in revenue for the third quarter, which was a 4% increase from the previous year, it fell short of analysts' expectations of $2.41 billion for the quarter, according to StreetAccount.

Despite analysts expecting $110 million in revenue, Abecma, a cell therapy for multiple myeloma, generated $124 million in sales during the quarter.