Bristol-Myers Squibb Company
BMY
reported better-than-expected results for the fourth quarter of 2020 as multiple myeloma (MM) drug, Revlimid, and blood thinner drug, Eliquis, drove growth for the company. Another MM drug, Pomalyst, also drove the upside.
The company also lifted its earnings guidance for 2021.
Shares were up in pre-market trading following the earnings release.
However, Bristol-Myers’ shares have lost 5.5% in the past year against the
industry
‘s growth of 12.4%.
Fourth-quarter 2020 earnings of $1.46 per share easily beat the Zacks Consensus Estimate of $1.37 and increased from the year-ago quarter’s $1.22.
Total revenues of $11.1 billion beat the Zacks Consensus Estimate of $10.6 billion and increased 39% from the year-ago period owing to incremental contributions from the Celgene acquisition, which was completed in November 2019.
Quarterly Details
On a pro-forma basis, revenues were up 10% (assuming the date of the company’s acquisition of Celgene to be Jan 1, 2019).
Revenues increased 43% to $6.8 billion in the United States and 34% outside the country. Ex-U.S. revenues were up 30% when adjusted for foreign exchange impact.
Myeloma drug, Revlimid, added with erstwhile Celgene’s acquisition, contributed $3.2 billion to the top line and was the top revenue generator for Bristol-Myers as sales increased 18% on a pro-forma basis.
Eliquis maintained momentum for the company as sales increased 12% to $2.3 billion. We note that Bristol-Myers has a collaboration agreement with
Pfizer
PFE
for Eliquis.
Sales of immuno-oncology drug Opdivo, approved for multiple cancer indications, were up 2% year over year to $1.8 billion.
Sales of rheumatoid arthritis drug, Orencia, were up 9% to $867 million.
Another key drug from Celgene, Pomalyst posted a strong performance and generated sales of $835 million, up 21% year over year. Abraxane generated sales of $297 million, down 12% year over year.
Leukemia drug, Sprycel, raked in sales of $564 million, up 3% year over year. Melanoma drug, Yervoy, contributed $471 million to the top line, rising 22% year over year.
MM drug, Empliciti, recorded sales of $91 million, down 3% year over year.
New drugs like Reblozyl generated sales of $115 million while Inrebic generated sales of $15 million.
Adjusted research and development (R&D) expenses in the quarter increased to $2.5 billion from $1.9 billion. Adjusted marketing, selling and administrative expenses rose to $2.5 billion from $1.7 billion.
2020 Results
Revenues came in at $42.5 billion, up 63% year over year and beat the Zacks Consensus Estimate of $42 billion. Earnings per share of $6.44 also beat the Zacks Consensus Estimate of $6.36.
2021 Guidance Update
Bristol-Myers now projects 2021 earnings of $7.35-$7.55 per share (previous guidance: $7.15-$7.45). The guidance assumes revenues to increase in high-single digits. The Zacks Consensus Estimate for earnings is pegged at $7.37 per share.
Key Pipeline Updates
The FDA recently approved Opdivo in combination with
Exelixis
’
EXEL
Cabometyx for the first-line treatment of patients with advanced renal cell carcinoma.
In November, the European Commission (EC) approved Opdivo for the treatment of adults with unresectable advanced, recurrent or metastatic esophageal squamous cell carcinoma (ESCC) after prior fluoropyrimidine- and platinum-based combination chemotherapy.
The company recently announced positive results from POETYK PSO-2, the second phase III study evaluating deucravacitinib, a novel, oral, selective tyrosine kinase 2 (TYK2) inhibitor, for the treatment of patients with moderate-to-severe plaque psoriasis. The study met both co-primary endpoints evaluating deucravacitinib versus placebo, with significantly more patients achieving Psoriasis Area and Severity Index (PASI 75) and Physician’s Global Assessment (sPGA) scales and met multiple key secondary endpoints versus Otezla (apremilast).
Our Take
Bristol-Myers’ performance in the fourth quarter and 2020 was encouraging as Revlimid and Eliquis drove growth for the company. Pomalyst too put up a robust show. Fourth-quarter earnings and sales beat estimates primarily due to the addition of Celgene’s drugs to its portfolio.
Bristol Myers Squibb Company Price and Consensus
Bristol Myers Squibb Company price-consensus-chart
|
Bristol Myers Squibb Company Quote
Opdivo too returned to growth after declining in the third quarter amid stiff competition from
Merck
’s
MRK
Keytruda.
The Celgene acquisition boosted Bristol-Myers’ oncology franchise and approval of new drugs added a new stream of revenues, which should propel growth in the coming quarters.
Bristol-Myers currently carries a Zacks Rank #3 (Hold). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
