TSVT - Bristol-Myers sets below-consensus guidance amid generic competition

2023-07-27 08:17:16 ET

Bristol-Myers Squibb ( NYSE: BMY ) traded lower pre-market Thursday after announcing lower than expected financials for Q2 2023 and setting its full-year outlook below the consensus, citing competition from cheaper generics.

The company’s topline for the quarter contracted ~6% YoY to $11.2B on a reported basis as U.S. revenues fell ~5% YoY to $7.9B, mainly as generic competition hurt demand for its multiple myeloma therapy Revlimid.

Meanwhile, adj. earnings per share fell ~9% YoY to $1.75 as adj. gross margin narrowed to 74.4% below expectations from 77.1% in the prior-year period.

Bristol-Myers ( BMY ) revised its full-year guidance for revenue growth and adjusted earnings to a low single-digit decline and $7.35–$7.65 per share, compared to ~1% YoY growth and $7.99 EPS projected by analysts, respectively.

"We saw a more rapid than expected decline in Revlimid sales in the quarter, which led to a revision of our financial guidance for the year," CEO Giovanni Caforio remarked ahead of the conference call at 8:00 a.m. ET.

The company expects Revlimid sales and adj. gross margin for the year to reach $5.5B and 76%, compared to $6.5B and 77.3% projected by analysts, according to data from Bloomberg.

Some of the key products in the company’s portfolio underperformed, including the anticoagulant Eliquis, which brought $3.2B in revenue with a 1% YoY decline, while Revlimid added $1.5B with a 41% YoY decline.

PD-L1 inhibitor Opdivo generated $2.1B in revenue, indicating a ~4% YoY growth, while the cell therapy Abecma, which the company markets with 2seventy bio, Inc ( TSVT ), added $132M with a ~48% YoY growth. However, both revenue figures stood below Wall Street forecasts.

Meanwhile, the company announced a $4B accelerated share repurchase program to be implemented during Q3 2023.

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