Bristol Myers Squibb reaffirmed expectations for a $10 billion pitfall from its generics-facing drugs on Wednesday, and BMY stock dipped.
The company acquired Celgene in a 2019 megamerger. Now, one of the biggest products from the deal is facing generics. During the June quarter, sales of cancer drug Revlimid toppled 22% to just north of $2.5 billion. Another cancer med, Abraxane, generated $241 million, declining 19%.
For the year, the company expects $46 billion in total sales. That includes a $10 billion or double-digit decline for Revlimid and Abraxane.
On today's stock market, BMY stock climbed 1.6% to close at 74.81.
BMY Stock: Sales, Earnings Grow
Overall, sales edged 2% higher to $11.89 billion, above analysts' projections for $11.42 billion. Excluding some items, Bristol Myers earned $1.93 per share. That also topped the $1.77 forecast, according to FactSet. Earnings climbed 18%.
Bristol Myers cited blood thinner Eliquis, immuno-oncology drug Opdivo and newer products for the sales increase. Eliquis is the company's biggest moneymaker. Sales jumped 16% higher to $3.24 billion. Opdivo sales climbed 8% to $2.06 billion.
Collectively, the drugs Bristol Myers lists as its "new product portfolio" generated $482 million in sales, more than doubling year over year.
For the year, Bristol Myers reiterated its outlook for adjusted earnings of $7.44-$7.74 per share and $46 billion in sales. BMY stock analysts expected earnings of $7.44 per share on $46.22 billion in sales.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
