Bristol Myers Squibb Warns Near-Term Impact Due To Generics On 2025 Sales Forecast, Outlines $2 Billion In Additional Cost Cuts

Zinger Key Points

Bristol Myers Squibb posted Q4 revenue of $12.34B, beating the consensus, with an 8% YoY increase driven by Growth Portfolio and Eliquis.
Adjusted EPS was $1.67, topping the $1.46 consensus but down from $1.70 last year. 2025 sales guidance is $45.5B vs. the $46.27B consensus.

On Thursday, Bristol Myers Squibb & Co BMY posted fourth-quarter revenues of $12.34 billion, beating the consensus of $11.57 billion.

Sales increased 8% year-over-year, or 9% when adjusted for foreign exchange impacts, primarily driven by the Growth Portfolio and higher demand for Eliquis, partially offset by the impact of generics on Sprycel, Revlimid, Abraxane and Pomalyst.

Growth Portfolio worldwide revenues increased to $6.36 billion, representing growth of 21% on a reported basis or 23% when adjusted for foreign exchange impacts.

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Opdivo sales increased 4% to $2.48 billion. The arthritis drug Orencia generated sales of $1 billion, up 2%. Sales of another cancer drug, Yervoy, increased 19% to $675 million.

Anemia drug Reblozyl generated $547 million in the quarter sales, up 71% from a year ago. Revenues for the Legacy Portfolio were $5.98 billion, down 4%.

The company reported an adjusted EPS of $1.67, down from $1.70 a year ago, beating the consensus of $1.46.

Bristol Myers Squibb expanded its existing strategic productivity initiative to include approximately $2 billion in additional annualized cost savings by the end of 2027.

In the third quarter of 2024, the company outlined cost-saving initiatives and anticipated internal cost savings of around $1.5 billion in 2025.

Guidance: Bristol Myers Squibb forecasts 2025 adj EPS of $6.55-$6.85 compared to the consensus of $6.92. The company forecasts 2025 sales of $45.5 billion versus the consensus of $46.27 billion.

The U.S. pharma giant estimates revenue forecast reflects, as previously expected, the near-term impact of generics across Revlimid, Pomalyst, Sprycel and Abraxane, which is expected to result in a revenue decline of approximately 18-20% of the Legacy Portfolio.

This is expected to be partially offset by the continued strength of the Growth Portfolio. This guidance also reflects an approximate $500 million expected negative impact to revenue due to foreign exchange.

Price Action: At the last check on Thursday, BMY stock was down 4.04% to $57.30.

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