Bristol Myers Squibb (BMY) took a machete to its 2022 outlook on Friday amid new generic competitors, and BMY inventory toppled.
For the yr, the corporate lower away $500 million from its outlook for Revlimid and Abraxane, a pair of most cancers therapies which have not too long ago misplaced patent protection. Teva Pharmaceutical (TEVA) launched its Revlimid generic final month.
Income from each oncology meds tumbled within the first quarter, with Abraxane taking a double-digit hit. Worldwide gross sales of Revlimid crashed 23% to $759 million “pushed by generic erosion throughout a number of European Union international locations and Canada,” Bristol Myers stated. Alternate charges additionally impacted gross sales.
In morning buying and selling on in the present day’s inventory market, BMY inventory tumbled 4.2% close to 74.
BMY Inventory: New Merchandise Develop
General, first-quarter metrics topped Wall Avenue’s expectations. Bristol Myers earned $1.96 per share, minus some objects, on $11.65 billion in gross sales. Earnings climbed 13% larger and topped views by a nickel, as gross sales rose 5% and beat expectations for $11.35 billion, in accordance with FactSet.
Regardless of Revlimid and Abraxane troubles — down a respective 5% and 32% — different merchandise posted sturdy features within the first quarter. Bristol Myers’ greatest moneymaker, blood thinner Eliquis, grew 14% to $3.21 billion in gross sales. Opdivo, a most cancers drug, generated $1.92 billion, up 15%.
Bristol Myers additionally reported double-digit will increase for newer merchandise Reblozyl, Onureg and Inrebic. Reblozyl treats anemia in adults with beta thalassemia. The latter two are most cancers therapies. All three are small contributors to the top-line.
However the pharmaceutical big lower its gross sales forecast for 2022. Now, Bristol Myers expects gross sales to be flat vs. its prior view for a low single-digit enhance to $47 billion. Additional, Bristol lowered its per-share earnings outlook to $7.44-$7.74 per share, down 21 cents on the midpoint.
BMY inventory inventory analysts had predicted adjusted revenue of $7.73 a share on $49.95 billion in gross sales.
Observe Allison Gatlin on Twitter at @IBD_AGatlin.
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