Bristol Myers Squibb
rose early Wednesday after the company reported gains that just beat Wall Street’s expectations.
The big pharmaceutical company
Bristol Myers Squibb
on Wednesday, non-GAAP reported second-quarter 2021 earnings of $1.93 per share and revenue of $11.7 billion, slightly better than FactSet’s consensus estimates of $1.89 per share and $11.3 billion .
The company confirmed its previously published non-GAAP earnings guidance. Shares rose 1.6% to $68.55 in early morning trading as the
was almost flat.
“Our robust and diverse pipeline combined with our clinical and commercial execution reinforces our confidence in our ability to renew the portfolio and deliver sustainable growth,” said the company’s CEO, Dr. Giovanni Caforio, Wednesday in a statement.
Total sales were up 16% compared to the same quarter last year, a quarter in which the company said revenues were “negatively impacted by approximately $350 million in Covid-19-related channel inventory cutbacks”.
Sales of the company’s cancer drug Yervoy were up 38% compared to the same quarter last year, while sales of another cancer drug, Opdivo, were up 16%. Sale of Eliquis, the heart drug that Bristol (ticker: BMY) is marketing in partnership with
(PFE), climbed 29%.
The company reported total cash, cash equivalents and marketable debt securities of $13.1 billion and total debt of $45.2 billion. Bristol says it has reduced its debt by $5.7 billion so far this year.
At the start of Wednesday trading, Bristol Myers shares are up 8.8% so far this year and 14.1% in the past 12 months. The stock is lagging behind both the S&P 500 and the
S&P 500 Pharmaceutical Index
over both time periods. The S&P 500 Pharmaceuticals Index is up 17.9% in the past 12 months and 12.4% so far this year.
Analysts are mixed on the stock. Of the 18 following Bristol, followed by FactSet, 11 rate it as Buy or Overweight, while seven rate it a Hold.
During a conversation with investors on Wednesday morning, an analyst asked whether the controversial U.S. Food and Drug Administration approval of
(BIIB) Alzheimer’s therapy Aduhelm impacted Bristol’s own neurology programs. The company’s chief medical officer, Samit Hirawat, said the approval set a threshold for the company to aim for.
“The way we look at that data is that now that the threshold has been set from a regulatory perspective, it was difficult to gauge which endpoints we should really aim for and what the threshold was,” Hirawat said. “Now that we know what the threshold is, it probably gets better or easier to develop studies now because there is a regulatory pathway forward.”
Bristol is facing a lawsuit filed by contingent value rights investors, who were set to pay out $9 per share if certain drugs in development by Celgene when Bristol acquired the company were set within a specified time frame by the U.S. Food and Drug Administration. Drug Administration were approved. The CVRs were canceled when one of the drugs missed the approval deadline, but the CVR holders have filed a lawsuit. In June, Mizuho analyst Salim Syed wrote that he expected Bristol to settle for between $3 billion and $4 billion. Analysts did not ask Bristol executives about the lawsuit during the earnings call.
Write to Josh Nathan-Kazis at email@example.com