Bristol Myers Squibb (BMY -0.55%), a leading global biopharmaceutical company, released its third-quarter 2024 earnings on Oct. 31. The company reported non-GAAP earnings per share (EPS) of $1.80, exceeding analyst expectations of $1.49.
Total revenue stood at $11.9 billion, surpassing the estimated $11.26 billion. This impressive quarter was driven by sales growth in its expanded oncology portfolio and robust operational execution. Overall, the quarter demonstrated Bristol Myers Squibb's ability to navigate competitive challenges while achieving significant revenue upticks.
| Metric | Result (Q3 2024) | Estimate | Result (Q3 2023) | % Change YoY |
|---|---|---|---|---|
| Non-GAAP EPS | $1.80 | $1.49 | $2.00 | -10% |
| Total Revenue | $11.9 billion | $11.26 billion | $10.97 billion | +8.5% |
| Growth Portfolio Revenue | $5.8 billion | N/A | $4.9 billion | +18% |
Source: Analyst estimates for the quarter provided by FactSet.
Company Overview and Strategic Focus
Bristol Myers Squibb is a major player in innovative medicines, particularly in oncology, immunology, and cardiovascular therapies. Its strategy hinges on leveraging acquisitions and a robust R&D pipeline to advance therapy options. The company has focused on expanding its targeted oncology portfolio through significant acquisitions, including Mirati, Karuna, and RayzeBio.
These acquisitions enhance Bristol Myers Squibb's offerings in oncology and neuroscience, ensuring it remains at the forefront of innovation. The company’s success factors include maintaining market exclusivity for key drugs, advancing its R&D capabilities, and navigating a competitive landscape strategically.
Quarterly Highlights and Performance Analysis
During the third quarter, Bristol Myers Squibb saw an 8% year-over-year revenue increase, largely driven by the products in its growth portfolio. Notable sales were seen in legacy drug Eliquis, which saw an 11% increase in global revenue. Opdivo in the growth portfolio posted a 4% growth globally, reflecting robust sales in oncology therapies.
Challenges were evident with generic erosions, particularly affecting products like Sprycel. Managing patent expirations remains vital as these losses can quickly reduce revenue. The company reported a decreased gross margin from 77.1% to 75.1%, attributed to product mix shifts, but underscored stable marketing expenses which supported profit sustainability.
R&D investments rose by 6% to foster innovation in the pharmaceutical pipeline. Bristol Myers Squibb's therapeutic advancements were highlighted by U.S. approval of new schizophrenia drug Cobenfy in the quarter.
Meanwhile, a lowered Medicare price for Eliquis presents pricing challenges.
However, the company successfully manages its financial obligations, reducing debt and maintaining a strong capital deployment strategy, which includes over $3 billion in debt repayment.
Looking Forward
Bristol Myers Squibb has raised its full-year revenue growth guidance to 5% (6% adjusting for foreign exchange), reflecting confidence in its strategic initiatives to overcome challenges. The company also anticipates its Non-GAAP EPS to land between $0.75 and $0.95. Management is focused on continuing its strong performance, emphasizing robust operational and financial execution in its growth portfolio.
New drug launches and strategic expansions will be pivotal in sustaining growth and maintaining market leadership. With a view to long-term strategic positioning, Bristol Myers Squibb remains committed to innovation and expansion of its therapeutic reach.
