BMS Reports Q3 Success and Increases 2024 Guidance Due to Strong Drug Demand

Bristol Myers Squibb (BMS) showed impressive third-quarter growth in 2024, with its sales surpassing expectations due to strong performances from both its established medications and newer products. The company has now increased its revenue forecast for the year, anticipating a 5% rise, up from earlier predictions of low-single-digit growth. Additionally, full-year earnings per share (EPS) expectations have been adjusted to between $0.75 and $0.95, compared to the previous range of $0.60 to $0.90.

CEO Christopher Boerner emphasized the company’s ongoing transformation, driven by its expanding growth portfolio and effective expense management. He highlighted the importance of the company's broad pipeline and several upcoming catalysts, which are crucial for both short-term execution and long-term sustainability.

During the third quarter, BMS reported global revenues of $11.9 billion, marking an 8% increase year-over-year in constant currencies and surpassing the consensus estimate of $11.3 billion by 6%. Analyst Matt Phipps from William Blair credited the robust quarter to the steady performance of legacy brands such as Revlimid and Eliquis, as well as the significant progress of newer products like Breyanzi, Abecma, and Reblozyl, which all exceeded estimates.

Truist Securities analyst Srikripa Devarakonda noted that the decline in sales of the multiple myeloma drug Revlimid was less severe than expected, dropping just 1% to $1.4 billion, which still outperformed the anticipated $1.1 billion. Eliquis, a blood thinner, remains BMS’s top product, with sales increasing by 11% year-over-year to just over $3 billion in the third quarter.

The earnings call highlighted the newly approved schizophrenia treatment, Cobenfy, which received FDA approval in September 2024. CEO Boerner expressed confidence in Cobenfy's potential to significantly boost the company's growth, describing its multibillion-dollar potential. However, he maintained a cautious outlook, reflecting a measured optimism about the drug’s immediate impact.

Analyst Evan Seigerman from BMO Capital Markets noted that although the management’s revenue expectations for Cobenfy in the neuropsychological field appeared conservative, the drug’s launch is anticipated to be gradual, particularly within the schizophrenia market. Seigerman sees greater promise for Cobenfy in treating Alzheimer’s psychosis, which is currently in Phase III trials.

Seigerman acknowledged BMS’s solid progress in the third quarter concerning both revenue and expenditures but emphasized that the company's long-term transformation would depend heavily on its pipeline. The consensus peak sales estimate for Cobenfy is $5.4 billion, and BMS anticipates a significant increase in sales starting in the second half of 2025. This growth will be facilitated by broader access to the drug for Medicare and Medicaid patients, as stated by Chief Commercialization Officer Adam Lenkowsky during the investor call.

In summary, Bristol Myers Squibb’s third-quarter results for 2024 reflect significant growth propelled by both legacy and new products. With an optimistic outlook for the year and a promising pipeline, the company is poised for continued success.