Bristol Myers Squibb Reports Strong Q2 Earnings, Raises Guidance Amid Cost-Cutting Efforts

Bristol Myers Squibb announced on Friday that its second-quarter earnings and revenue exceeded expectations, prompting the pharmaceutical company to raise its full-year guidance. The company now anticipates a revenue increase in the "upper end" of the low single-digit range, an improvement from its previous forecast of a low single-digit increase. Additionally, Bristol Myers has adjusted its 2024 earnings guidance to between 60 cents and 90 cents per share, up from an earlier estimate of 40 cents to 70 cents. The positive financial results come as Bristol Myers embarks on a significant cost-cutting initiative aimed at reducing expenses by $1.5 billion by 2025. This strategy includes laying off over 2,000 employees, discontinuing certain drug programs, and consolidating operations. The company aims to reinvest the savings into key drug brands and research and development efforts. For the second quarter, Bristol Myers reported adjusted earnings per share of $2.07, significantly surpassing the expected loss of $1.63. Revenue reached $12.2 billion, a 9% increase from the same period last year, and also exceeded analysts' expectations of $11.55 billion. The company’s net income for the quarter was $1.68 billion, or 83 cents per share, down from $2.07 billion, or 99 cents per share, in the previous year. Key drivers of this growth included strong sales of the cancer drug Opdivo and the blood cancer treatment Revlimid, which outperformed analysts' estimates despite facing competition from generics. However, Bristol Myers is under pressure to introduce new drugs to compensate for the anticipated revenue losses from Revlimid and other top-selling medications as they approach the end of their market exclusivity.