Bristol-Myers Squibb's Q2 sales rise 11 percent, lifted by Eliquis, Opdivo

Headline results for the second quarter:

Revenue

$5.7 billion (forecasts of $5.5 billion)

+11%

Profit

$373 million

Versus $916 million

Note: All changes are versus the prior-year period unless otherwise stated

What the company said:

"We had a very good second quarter where we delivered strong performance for Eliquis and Opdivo," remarked CEO Giovanni Caforio. The executive said "looking forward, we are focused on robust commercial execution and the evolution of our diversified pipeline to deliver transformational medicines to the patients we serve."

Bristol-Myers Squibb noted that results in the quarter were impacted in part by a $1.1-billion charge related to its collaboration with Nektar Therapeutics to develop the latter's NKTR-214 immuno-oncology programme.

Other results:

  • US revenue: $3.2 billion, up 13 percent
  • Eliquis: $1.7 billion, up 40 percent, topping analyst forecasts
  • Opdivo: $1.6 billion, up 36 percent, above analyst estimates
  • Orencia: $711 million, up 9 percent, ahead of analyst predictions
  • Sprycel: $535 million, up 6 percent, beating analyst forecasts
  • Yervoy: $315 million, down 2 percent, but above analyst estimates
  • Empliciti: $64 million, up 16 percent, also above analysts' expectations   
  • Baraclude: $179 million, down 34 percent, missing analyst estimates

What analysts said:

"The performance is encouraging, but immuno-oncology competition is intensifying," BMO Capital Markets analyst Alex Arfaei commented, adding "R&D and commercial execution in immuno-oncology remains paramount."

Looking ahead:

Bristol-Myers Squibb now expects full-year earnings per share in the range of $3.55 to $3.65, up from a previous estimate of between $3.35 and $3.45, with revenue projected to increase in the mid- to high-single digits, versus a prior forecast of mid-single-digit growth. Analysts anticipate 2018 earnings of $3.42 per share.

Pipeline update:

Bristol-Myers Squibb disclosed that the European Medicines Agency's Committee for Medicinal Products for Human Use plans to issue a negative decision regarding approval of the combination of Opdivo and Yervoy to treat first-line renal cancer. "We strongly disagree with this opinion. And in the interest of patients, we will pursue a re-examination," Caforio remarked.

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