Bristol Myers Squibb stock gapped higher Friday after the Big Pharma stalwart beat June-quarter forecasts and announced a surprise win for its immunology drug, cendakimab.
William Blair analyst Matt Phipps says investors haven't focused much on cendakimab. Bristol Myers is testing it in two digestive conditions. On Friday, the company said cendakimab met both the goals in a Phase 3 study evaluating it in patients with eosinophilic esophagitis.
This could help Bristol Myers' drug take on immunology blockbuster Dupixent, from Regeneron Pharmaceuticals and Sanofi.
Bristol Myers also raised its outlook on the back of the strong second quarter showing.
On today's stock market, Bristol Myers Squibb stock jumped 11.4% to close at 50.45. Shares surged above their 200-day moving average for the first time since February 2023, MarketSurge shows.
Bristol Myers Squibb Stock: Earnings Surge
Across all drugs, sales climbed 9% to $12.2 billion, beating expectations for $11.54 billion, according to FactSet. Excluding the impact of exchange rates, sales popped 11%. On an adjusted basis, earnings came in at $2.07 a share, walloping forecasts for $1.62. Earnings surged 18% year over year.
The lion's share of the sales beat came from Revlimid, Bristol Myers' multiple myeloma treatment. The drug is facing less expensive generic versions. Sales fell 8% to $1.35 billion. But that easily topped the Street's call for $1.09 billion.
Revlimid "has shown variability in its gradual generic decline," Phipps said in a report. He noted other big-name drugs, including Opdivo, Pomalyst, Sprycel and Reblozyl, all beat expectations. Newer drugs Camzyos, Zeposia and Breyanzi also came in ahead of projections, "potentially showing increased traction of these important growth drivers," he said.
Phipps has a market perform rating on Bristol Myers Squibb stock.
Opdivo Sales Grow, Beat Forecasts
Opdivo, a cancer treatment and one of Bristol's most notable drugs, brought in $2.39 billion in sales. Sales advanced 11%. The best growth came from Reblozyl, though. Reblozyl treats anemia associated with some blood diseases. Sales rocketed 82% to $425 million.
But revenue from Bristol Myers' biggest moneymaker, blood thinner Eliquis, were mixed at $3.42 billion. Bristol Myers Squibb stock analysts expected $3.4 billion, but William Blair's Phipps called for a stronger $3.43 billion. Eliquis sales climbed 7% vs. the year-earlier period.
Eliquis is on a list of drugs up for price negotiation at the Centers for Medicare and Medicaid Services.
"Investors will look for any comments on the negotiation process with CMS over the price to be instituted in 2026 ahead of the CMS release of the price in September," Phipps said.
Bristol Myers also raised its outlook for the year and now expects sales to increase by the upper end of a low single-digit percentage. Further, the company calls for adjusted earnings of 60-90 cents per share, up from its prior guidance for 40-70 cents. The latter completely topped analysts' call for 51 cents.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
