Drugmaker Bristol Myers Squibb (BMY.N) posted better-than-expected second-quarter results, driven by growth from new products like anemia treatment Reblozyl and heart drug Camzyos as well as from its top-seller, blood thinner Eliquis.
Eliquis is expected to have revenue curtailed when the U.S. Medicare health plan for people over age 65 institutes negotiated drug prices starting in 2026. President Joe Biden’s signature Inflation Reduction Act (IRA), signed into law last year, allows Medicare to negotiate prices for some of its most costly drugs.
Bristol Myers Chief Executive Chris Boerner said the company has received the final price for the drug from the U.S. regulators, which will be made public by Sept. 1.
"Based on having seen the price, we're very confident in our ability to navigate the impact of the IRA on Eliquis," he said on the company's conference call with investors.
The company also raised its earnings forecast for the full year. Its shares rose about 7% to $48.41 in premarket trading.
"You're really seeing the transformation of our business to the new growth portfolio," Chief Financial Officer David Elkins said in an interview.
Last year, the company said it needed more time to hit its growth targets for its new drugs, pushing back by a year the time frame for its new-product portfolio to hit $10 billion in revenue.
Sales from its so-called growth portfolio, which includes new products as well as some established brands like cancer immunotherapy Opdivo, grew 18% year-over-year.
Total revenue in the quarter was $12.2 billion, up about 9% from $11.2 billion last year. Analysts, on average, had expected revenue of $11.5 billion, according to LSEG data.
Bristol Myers earned $1.68 billion, or 83 cents a share, in the quarter, down from $2.07 billion, or 99 cents a share last year. Excluding one-time items, the drugmaker said it earned $2.07 a share in the quarter, compared with analyst estimates of $1.63 a share.
The company reported sales of $3.4 billion, up 7% from last year, for current top-seller Eliquis in the quarter. That was in line with analyst expectations.
The company said sales of Opdivo rose 11% to $2.4 billion in the second quarter. Sales of anemia drug Reblozyl rose 82% from last year to $425 million and Camzyos sales more than tripled to $139 million.
Bristol Myers said it now expects full-year earnings of 60 to 90 cents a share, up from its previous estimate of 40 to 70 cents a share. Analysts had forecast full-year earnings of 51 cents a share.
The company's shares closed at $45.27 on Thursday, down around 14% so far this year.
