Bristol Myers Squibb’s revenue beat and Rosy Outlook did not resolve the lingering issue with the stock on Thursday. But for now it was sufficient. According to LSEG, revenue for the first quarter ended March 31st fell to $11.2 billion to 6%, exceeding the $10.7 billion estimate. Earnings per share adjusted for $1.80 beat its $1.49 forecast. In the first quarter of last year, the company reported losses. BMY YTD Mountain Bristol Myers stock performance from the beginning of the year. Although each fell below $48 on Thursday, Bristol Myers shares lost around 20% in April to unfortunate news about tariff uncertainty and its pipeline. We maintained two comparable ratings when we made a profit of about $62 per share in March, reducing our price target from $70 to $60. Bristol Myers of the Bottomline is heading down a tougher path to prove that he can move his power through the looming general competition for some old drugs. And this week’s failed trial for new schizophrenia treatment, Cobenfy. This raises the standard for Cobenfy’s implementation, both for patient ingestion in currently approved conditions, such as Alzheimer’s psychosis, and for reading future clinical trials for new uses of the drug. Their first quarter results for Bristol Myers were all expected, as sales, revenue and gross profit were all strong. But digging deeper into that number, it was the strength of the company’s two old drugs, blood thin elixis and blood cancer therapy revrimids, which promoted a significant portion of the top line sales beat. This helps explain the modest market response to the quarter, with dynamics similar to Bristol Myers’ full year sales and revenue guidance procurement. Are you frustrated that a weak revlimid number hurts stocks when you last report your earnings? yes. However, in addition to recent failed research to expand the use of the heart drug Camyoz, the unfortunate Covenfee Trial, not to mention the lack of a sense of closure of tariff uncertainty, has naturally created a tolerant background. Bristol Myers Squibb Why we own it: The company’s new schizophrenia treatment Cobenfy has a big sale potential, but it remains in the early innings. Bristol Myers has major products, including the blood preventive drug Eliquis and lung cancer therapy opdivo. However, we believe that the growth drug portfolio, including Cobenfy, will help you navigate its patent cliff. Initiation: November 25, 2024 Latest Purchase Date: February 10, 2025, Competitors: Abbey, Pfizer, Amgen, Johnson & Johnson, Merck have not lost full confidence in Bristol Myers’ ability to execute, as explained at the meeting on Thursday morning. At current prices, the 5% dividend yield on the stock is also attractive, with no demand for revenues below 8x. Nevertheless, the path to victory and the profits of meaningful stocks have become even more severe. Commentary on Thursday, investors focused on lasers on Cobenfy (the core of the club’s stock paper) after failing to meet expectations in a trial exam to examine the effectiveness of the new schizophrenia drug as an add-on therapy for disorders. It put pressure on stocks during Wednesday’s session and missed out on a wide range of rallys across the market. Cobenfy is key to Bristol Myers’ plan to navigate patent satisfaction for several “legacy” drugs, including the aforementioned Eliquis and Revlimid. Cobenfy received approval from US regulators in September 2024 as a standalone schizophrenia treatment six months after Bristol Myers ended its $14 billion purchase of Karuna Therapeutics. According to Factset, Cobenfy’s first quarter sales totaled $27 million ahead of analysts’ forecast of $17 million. However, the reported figures include $9 million “gross” profits related to discounts and rebates, effectively making beats and expectations. CEO Chris Bourner said Bristol Myers is happy with Cobenfy’s early prescribing trends. “Patient and physician feedback is very positive,” he said, adding that “patients are observing cognitive benefits.” Cole’s Bohner and other executives remained positive about Cobenfy’s future despite a setback in add-on trials. The company continues to focus on Cobenfy as an independent treatment that accounts for 70 to 80% of the market, Boerner said. The goal is for Cobenfy to become a “basic treatment” there, he said. Adam Lenkowsky, the company’s chief commercialization officer, has explained more deeply why add-on treatment opportunities are secondary in planning. He said that psychiatrists would ideally like to give patients one drug. However, he said the reason they start looking at add-on therapy is because standalone therapy is not effective enough on its own. Bristol-Myers wants to move Covenfee on the treatment line, so doctors will consider prescribing it earlier, Lenkowsky said. In another indication of confidence in the drug, Bohner said he hopes Bristol-Myers will start by 3am of three additional late trials of Covenfee, examining Covenfee’s ability to treat other conditions. year. Executives said that the set-off for add-on schizophrenia will not change expectations for other trials. Guidance Bristol Myers has raised guidance on some key metrics for 2025, but the reasons for the revision, including foreign exchange benefits, explain why the company is not gaining much credibility. Bristol Myers’ sales outlook went from $45.8 billion to $46.8 billion from the previous $45.5 billion. This reflects $500 million profit from the foreign exchange rate. The company also expects revenue from its first quarter drug “heritage” portfolio from what has generated strong performance in its more significant “growth” portfolio. In the first quarter, the growth portfolio saw an 18% increase in revenue, representing approximately half of total revenue. In the revenue call, executives said they expect legacy portfolio revenue to fall between 16% and 18% this year, primarily due to Revlimid’s performance. Bristol Myers maintained its year-round operating certificate target of 37%. The new adjusted EPS guidance, ranging from $6.70 to $7, rose 15 cents across the range. The company also considers royalty and interest income of $70 million than previously expected. Furthermore, the guidance explains existing tariffs on US products imported into China, rather than drug-specific tariffs threatened by the Trump administration. Naturally, executives are troubled by tariff questions on revenue calls, and their comprehensive message is essentially to respond as the company has a lot of flexibility within its manufacturing network, looking for ways to optimize with tariffs in mind. Bristol-Myers has a significant presence in the US, but is not overly dependent on any country for its supply chain, executives explained. “We will also continue to engage with the administration to ensure that everything is well thought out and deliberated as to how we move forward, whatever,” Bohner said. The last thing to highlight from the call is the discussion of business development, often shortened to “BD” by executives. This includes potential acquisitions or drug partnerships, representing another level of pull to offset the expiration of a patent. Bohner said Bristol Myers is “actively pursuing opportunities” to boost the company’s growth profile. “With our new organization’s agility and balance sheets in a solid position, we have the flexibility to act decisively when we find the right opportunity,” he said. (Jim Kramer’s Charitable Trust is a long BMY. See the full list of stocks here.) As a member of the CNBC Investment Club with Jim Kramer, you will receive a trade warning before Jim can trade. Jim waits 45 minutes after sending a trade alert before purchasing or selling stocks in the Charitable Trust portfolio. If Jim talks about stocks on CNBC TV, he will wait 72 hours after issuing a trade alert before running the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with the disclaimer. Due to receiving information provided in connection with the Investment Club, there is no obligation or obligation of the fiduciary. No specific outcomes or benefits are guaranteed.
The logo of pharmaceutical company Bristol-Myers Squibb (BMS) will be found on the facade of its Munich headquarters on August 29, 2024 in Munich (Bavaria).
Matthias Burke | Photo Alliance | Getty Images
Bristol Myers SquibbThursday’s revenue beat and rosy outlook did not resolve the lingering issue of the stock. But for now it was sufficient.
