BMY Stock Dives As Generics, Revlimid Rivals Slam 2022 Outlook

Bristol Myers Squibb (BMY) took a machete to its 2022 outlook on Friday amid new generic competition, and BMY stock toppled.


For the year, the company cut away $500 million from its outlook for Revlimid and Abraxane, a pair of cancer treatments that have recently lost patent coverage. Teva Pharmaceutical (TEVA) launched its Revlimid generic last month.

Revenue from both oncology meds tumbled in the first quarter, with Abraxane taking a double-digit hit. International sales of Revlimid crashed 23% to $759 million “driven by generic erosion across several European Union countries and Canada,” Bristol Myers said. Exchange rates also impacted sales.

In morning trading on today’s stock market, BMY stock tumbled 4.2% near 74.

BMY Stock: New Products Grow

Overall, first-quarter metrics topped Wall Street’s expectations. Bristol Myers earned $1.96 per share, minus some items, on $11.65 billion in sales. Earnings climbed 13% higher and topped views by a nickel, as sales rose 5% and beat expectations for $11.35 billion, according to FactSet.

Despite Revlimid and Abraxane troubles — down a respective 5% and 32% — other products posted strong gains in the first quarter. Bristol Myers’ biggest moneymaker, blood thinner Eliquis, grew 14% to $3.21 billion in sales. Opdivo, a cancer drug, generated $1.92 billion, up 15%.

Bristol Myers also reported double-digit increases for newer products Reblozyl, Onureg and Inrebic. Reblozyl treats anemia in adults with beta thalassemia. The latter two are cancer treatments. All three are small contributors to the top-line.

But the pharmaceutical giant cut its sales forecast for 2022. Now, Bristol Myers expects sales to be flat vs. its prior view for a low single-digit increase to $47 billion. Further, Bristol lowered its per-share earnings outlook to $7.44-$7.74 per share, down 21 cents at the midpoint.

BMY stock stock analysts had predicted adjusted profit of $7.73 a share on $49.95 billion in sales.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.


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