Bristol Myers Squibb shares fall amid sluggish sales of some newer drugs

By Eleanor Laise

Drugmaker plans to cut 2,200 jobs this year

Bristol Myers Squibb Co. shares fell 2% premarket on Thursday after the company reported better-than-expected first-quarter results but said it would cut about 2,200 jobs this year as part of a cost-saving initiative.

The drugmaker reported a net loss of $11.911 billion, or $5.89 per share, after net income of $2.262 billion, or $1.07 per share, in the year earlier period. First quarter adjusted loss per share was $4.40, after adjusted earnings per share of $2.05 a year earlier, narrower than the FactSet consensus of $4.43. Revenue totaled $11.865 billion in the quarter, up 5% from a year earlier and topping the FactSet consensus of $11.45 billion.

The quarter's loss reflects the one-time net impact of acquired in-process research and development and licensing income related to recently closed transactions. The company's recently closed deals include the acquisitions of Karuna Therapeutics, completed in March, and RayzeBio, completed in February.

Due to the impact of the recent deals, Bristol Myers said it now expects full-year adjusted earnings per share in the range of 40 cents to 70 cents, down from previous guidance of $7.10 to $7.40.

Bristol Myers said it is looking to save about $1.5 billion by the end of next year through a productivity initiative that will focus resources on research and development programs likely to deliver the biggest return on investment and prioritize investment in key growth brands, among other measures. The initiative will impact about 2,200 jobs this year, the company said in its earnings presentation.

Eliquis, one of 10 drugs selected for the first round of Medicare drug price negotiations under the Inflation Reduction Act, generated $3.72 billion in sales in the quarter, up 9% from a year earlier and ahead of the FactSet consensus.

But sales of some newer drugs seen as key to Bristol Myers' future growth, including psoriasis treatment Sotyktu, heart drug Camyzos, and CAR-T cell therapy Abecma, fell short of the FactSet consensus for the quarter.

Sales of Revlimid, a multiple myeloma treatment that is facing generic competition, totaled $1.67 billion in the quarter, down 5% from a year earlier.

Bristol Myers shares (BMY) are down 4.8% in the year to date, while the S&P 500 is up 6.3%.

-Eleanor Laise

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04-25-24 0812ET

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