Bristol Myers Squibb stock reversed higher Thursday after the drugmaker beat Wall Street's first-quarter expectations and raised its outlook for the year.
Adjusted earnings came in at $1.80 per share, walloping forecasts for $1.49 and flipping from a year-earlier loss, according to FactSet. Sales slipped 6% to $11.2 billion — or 4% in constant currency — but topped projections for nearly $10.7 billion.
Promisingly, its new schizophrenia treatment, Cobenfy, generated better-than-expected sales at $27 million. Analysts had projected just $17.3 million. Earlier this week, Bristol Myers Squibb said Cobenfy failed to make a statistically significant difference as an add-on treatment for patients whose regular treatments aren't fully controlling the symptoms of their schizophrenia.
The strong sales are "good considering the drug had a recent clinical trial setback that would have expanded its potential patient size," Edward Jones analyst John Boylan said in a client note.
On today's stock market, Bristol Myers Squibb stock climbed a fraction, closing at 48.69. That reversed from an earlier drop.
Bristol Myers Squibb: Opdivo, Yervoy Beat
Still, Boylan called it a "good quarter led by effective cost control."
Sales of cancer drugs Opdivo and Yervoy beat expectations, as did generics-facing Revlimid. Revenue from Opdivo grew 9% to $2.27 billion. Excluding the impact of exchange rates, sales grew 12%. Yervoy generated $624 million, up 7% or 9% in constant currency. Revlimid sales dropped 44% to $936 million. But the Street projected a much lower $823.4 million.
Notably, revenue from blood thinner Eliquis also beat expectations at $3.57 billion, though it fell 4% — or 3% in constant currency.
On the flip side, sales of Camzyos and Sotyktu lagged forecasts. Camzyos is a heart disease treatment that also recently faced a clinical trial setback. Sotyktu treats plaque psoriasis. Boylan noted the latter is facing "strong competition and increased rebates to customers."
Guidance Hike Includes Current Tariffs
Still, Bristol Myers Squibb raised its sales guidance to a range of $45.8 billion to $46.8 billion. That accounts for strong performance from newer drugs and better-than-expected sales from its older drugs, the so-called "legacy portfolio." Bristol also accounted for a favorable $500 million impact tied to exchange rates.
The company also raised the midpoint of its adjusted earnings outlook by 15 cents to $6.70 to $7 per share.
The guidance includes current tariffs on U.S. products shipped to China, but doesn't take into account the potential for pharma sector tariffs.
Follow Allison Gatlin on X/Twitter at @AGatlin_IBD.
