BMY Stock: Bristol Expects $10.5 Billion Shortfall This Year As Generics Loom

Bristol Myers Squibb (BMY) offered better-than-expected sales guidance Friday, and BMY stock rose despite looming competition for two of its biggest cancer drugs.

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Revlimid and Abraxane are among Bristol’s blockbuster drugs, and both are due to lose patent protection this year. Guidance for $47 billion in overall full-year sales for the company accounts for roughly $10.5 billion in lost revenue between the two drugs.

The company’s biggest moneymaker, Revlimid, is expected to generate $9.5 billion to $10 billion in sales this year. That would fall roughly 24% year over year. Edward Jones analyst Ashtyn Evans says Bristol Myers will make up the Revlimid decline with its newer drugs.

“We expect Bristol to continue to invest in new innovative products to make up for this sales headwind,” she said in a report. Evans kept her hold rating on BMY stock.

BMY Stock: Earnings Beat, Sales Light

During the fourth quarter, Bristol earned $1.83 per share, excluding some items. Earnings climbed 25% year over year and topped forecasts by 3 pennies. Sales advanced 8% to $11.99 billion, but missed expectations for $12.04 billion, according to FactSet.

Revlimid brought in $3.33 billion in sales, inching 1% higher.

More bullishly, revenue from blood thinner Eliquis surged 18% to $2.67 billion. Bristol Myers also noted strength from its immuno-oncology drugs, Opdivo and Yervoy. Opdivo sales popped 11% to $1.99 billion. Yervoy brought in $545 million, growing 16%.

Bristol reported strong growth from Reblozyl, an anemia treatment from Bristol and Merck (MRK) subsidiary Acceleron Pharma. Reblozyl sales jumped 31% to $151 million.

For the year, Bristol expects to earn $7.65-$7.95 per share, minus some items. The midpoint of the guidance touched BMY stock analysts’ call. Guidance for $47 billion in sales topped expectations for $46.46 billion. Sales would rise a low single-digit percentage.

On today’s stock market, BMY stock advanced 1.4% to 64.99.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.

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