Bristol Myers Squibb said Thursday it needs another year for its new products to reach $10 billion in sales, and BMY stock tumbled.
Previously, Bristol Myers expected new products like anemia treatment Reblozyl, psoriasis medicine Sotyktu and multiple sclerosis drug Zeposia to generate $10 billion to $13 billion in sales in 2025. Now, the company doesn't expect to reach the low end of that until 2026.
Edward Jones analyst John Boylan noted Bristol Myers has faced slower-than-expected adoption for cardiomyopathy drug Camzyos and insurance headwinds for Sotyktu.
Bristol Myers is already struggling with generics taking a bite out of one of its cancer heavyweights, Revlimid, Leerink Partners analyst David Risinger said. Further, blood thinner Eliquis will see a new Medicare-negotiated price in 2026 under the Inflation Reduction Act.
"A key issue facing the company is where 2026 financials will shake out given additional Revlimid generic pressures plus the Eliquis pricing step-down due to the IRA," Risinger said in a report.
On today's stock market opened, BMY stock skidded 6.4% to close at 52.97. Shares remain well below their 50-day and 200-day moving averages, according to MarketSmith.com.
BMY Stock: Revlimid Sales Slow, But Beat
Despite the stock dive, third-quarter metrics actually beat forecasts. Bristol Myers earned $2 per share, minus some items, on $10.97 billion in sales.
Earnings inched ahead 1% and topped forecasts for $1.76 per share, according to FactSet. Sales fell 2% but were narrowly ahead of the Street's $10.96 billion projection. In constant currency, Bristol's revenue slipped 3%.
Several of Bristol Myers' big-name drugs missed expectations. Revenue from cancer drug Opdivo grew 11% to $2.28 billion, but narrowly lagged forecasts for $2.32 billion. Eliquis sales edged up 2% to $2.71 billion, below projections for $2.84 billion.
Revlimid sales also plummeted 41% to $1.43 billion. That turned out better than expected, however. BMY stock analysts had forecast a steeper decline to $1.24 billion.
Among newer products, sales of Reblozyl, Camzyos and multiple myeloma drug Abecma came in short, said Risinger, the Leerink analyst. But Sotyktu sales beat expectations at $66 million.
Bristol Myers raised the low end of its full-year earnings guide by 15 cents a share, and now expects to earn an adjusted $7.50 to $7.65 per share. Sales are still expected to fall by a low single-digit percentage, but the company raised its Revlimid view to $6 billion, up from $5.5 billion previously.
BMY stock analysts forecast $7.36 earnings per share and $44.74 billion in sales.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
