BMS bumps up full-year profit estimate as Q3 sales surge 75%

Headline results for the third quarter:

  • Revenue: $10.5 billion (forecasts of $10.3 billion), up 75%
  • Profit: $1.9 billion, versus $1.4 billion in the prior year

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

What the company said:

CEO Giovanni Caforio said "our financial strength and flexibility combined with our robust inline businesses, multiple launches and progress in our deep pipeline, including the promising results from the deucravacitinib trial, strongly position the company to deliver our mission."

Bristol Myers Squibb attributed the quarterly revenue jump to higher demand for Eliquis, but mostly to the impact of its $74-billion Celgene acquisition, which was completed in November 2019, and has so far this year contributed $12.9 billion of revenues. US sales in the third quarter surged 88% to $6.5 billion, while the company generated $4 billion in sales internationally, reflecting a gain of 58% over the year-ago period.

Other results:

  • Revlimid: $3 billion, up 10% on a pro forma basis, having been acquired via the Celgene takeover
  • Eliquis: $2.1 billion, up 9%
  • Opdivo: $1.8 billion, down 2%
  • Orencia: $826 million, up 8%
  • Pomalyst/Imnovid: $777 million, up 17% on a pro forma basis
  • Sprycel: $544 million, down 3%
  • Yervoy: $446 million, up 26%
  • Abraxane: $342 million, up 8% on a pro forma basis
  • Empliciti: $96 million, up 8%

Looking ahead:

Bristol Myers Squibb stated that although the COVID-19 pandemic has "not had a significant impact on our results…it remains difficult to reasonably assess or predict the full extent of the negative impact [it] may have on our business." It noted that certain changes in buying patterns have occurred, including payers implementing policies to encourage larger prescription sizes and earlier refills, but fewer patient office visits are resulting in "lower than previously expected" new patient starts.

Still, the drugmaker is now projecting sales this year to be between $41.5 billion and $42 billion, with the bottom end of the range lifted from a prior estimate of $40.5 billion. Earnings per share for 2020 are forecast to be in the range of $6.25 to $6.35, boosted from an earlier prediction of $6.10 to $6.25, while analysts anticipate earnings of $6.28 per share. It also reaffirmed its 2021 earnings guidance to be in the range of $7.15 to $7.45 per share.

The company said the upgraded guidance "assumes that healthcare systems around the world will continue to adapt, and gradually recover from the impacts from the COVID-19 pandemic," although it excludes the impact of any potential future divestitures and acquisitions, including the recent $13.1-billion MyoKardia takeover.

Pipeline updates:

Bristol Myers Squibb also provided an update on the contingent value rights (CVR) tied to its Celgene acquisition, saying that the FDA must conduct inspections of two manufacturing facilities before they can issue a decision on its filing for lisocabtagene maraleucel (liso-cel), which has to secure US approval by the end of the year for the CVR to be awarded. The CD19-directed CAR T-cell therapy is currently under review by the FDA for adults with relapsed or refractory large B-cell lymphoma, with a decision expected by November 16.

"One of those [site] inspections has occurred, the other has not yet been scheduled," Bristol Myers Squibb said, but "we do not believe that the scheduling of the second site inspection is dependent on the outcome of the first site's inspection, as they are independent facilities."

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