Bristol-Myers posts better-than-expected results, Opdivo growth slows

This post was originally published on this site

https://i-invdn-com.akamaized.net/trkd-images/LYNXMPEF9U0VG_L.jpg

By Michael Erman

NEW YORK (Reuters) – U.S. drugmaker Bristol-Myers Squibb Co (N:) reported higher-than-expected third-quarter profit on Thursday, helped by strong sales of blood thinner Eliquis, even as growth of its blockbuster cancer treatment Opdivo slowed.

Bristol-Myers, which is set to buy biotechnology company Celgene Corp (O:) for $74 billion later this year, posted net earnings of $1.35 billion, or 83 cents a share, in the quarter, down from $1.9 billion, or $1.16 a share, last year.

Excluding one-time items, the company said it earned $1.17 a share, exceeding analysts’ expectations of $1.07 a share, according to IBES data from Refinitiv.

The company raised both ends of its full-year adjusted earnings forecast range by 5 cents and now expects a profit of $4.25 to $4.35 per share. Analysts had been estimating the company will earn $4.28 a share in 2019.

Sales of cancer immunotherapy Opdivo rose only 1% from a year ago to $1.82 billion, roughly in-line with Wall Street expectations. Once viewed as the company’s most important growth driver, Opdivo sales have hovered around $1.8 billion a quarter for the past four quarters.

Meanwhile, Merck & Co’s (N:) rival drug Keytruda brought in nearly $3.2 billion in the third quarter, up 67% from the previous year.

There has been widespread investor concern over the dominance of Keytruda, as it has become the go to treatment for newly diagnosed advanced lung cancer, the most lucrative oncology market. Bristol-Myers is hoping recent positive results in two clinical trials will help improve Opdivo’s position in lung cancer.

Eliquis, which Bristol shares with Pfizer Inc (N:), continues to be a bright spot. Its sales rose 22% to $1.93 billion, while analysts were estimating $1.85 billion.

Sales of rheumatoid arthritis drug Orencia and leukemia treatment Sprycel also were stronger than analysts had forecast.

Revenue in the quarter rose 6% from a year ago to $6 billion, also topping Wall Street expectations of $5.89 billion.

Bristol-Myers shares closed up 2% at $56.87 on the New York Stock Exchange on Wednesday.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.