BMS made progress in the third quarter and raised its guidance for 2024 amid strong demand for legacy and new medicines

Bristol Myers Squibb on Thursday reported strong growth compared to last year in the third quarter of 2024, with sales easily beating consensus estimates driven by its legacy and new products.

Thanks to the third-quarter results, BMS raised its full-year revenue forecast, now expecting full-year growth to increase by about 5% – up from its previous forecast of high-end, low-single-digit growth. The company’s full-year diluted earnings per share (EPS) guidance was also raised to $0.75 to $0.95 from the previous range of $0.60 to $0.90.

“Our overall business structure is beginning to transform as our growth portfolio becomes a larger component,” CEO Christopher Boerner said during a call with investors Thursday, touting the combination of its portfolio that is moving toward multiple “near-term catalysts” and “disciplined focus.” to cost management.”

These factors, according to Boerner, are key to “focusing the company on achieving results in the short term while laying the foundation for long-term sustainable growth.”

For the third quarter, BMS reported total global revenue of $11.9 billion, representing 8% year-over-year growth in constant currencies and 6% above the consensus estimate of $11.3 billion.

In a note to investors, William Blair analyst Matt Phipps said BMS’ strong quarter was driven by solid performance from its traditional brands, including Revlimid and Eliquis, as well as “performance” from growing portfolio brands such as Breyanzi, Abecma and Reblozyl, which “all beat consensus estimates “

Truist Securities analyst Shrikripa Devarakonda said in a note to investors that demand for multiple myeloma drug Revlimid fell “less than expected.” Its sales fell 1% in the quarter to $1.4 billion, but still topped the consensus estimate of $1.1 billion. Blood thinner Eliquis continues to be BMS’s top-performing asset, up 11% year-over-year to bring just over $3 billion in the third quarter.

BMS’s earnings call was primarily focused on the recently approved schizophrenia drug Cobenfy, which won FDA approval in September 2024. Boerner said the drug has “multi-billion-dollar potential” and will help the company accelerate growth, although the company’s optimism appears to be largely justified.

BMO Capital Markets analyst Evan Seigerman said in a note to investors that “while we appreciate the conservatism in neuropsychology, management’s comments on earnings expectations were somewhat muted,” especially because “the launch is expected to be a slow-burner for schizophrenia.”

In contrast, Sagerman expects Alzheimer’s psychosis to be a stronger opportunity for Cobenfi “from a sentiment perspective.” Kobenfi currently under development III according to this instruction.

“While we are encouraged by Bristol’s progress in the quarter on revenue and expenses, the transformational changes Bristol needs will come from within its portfolio,” Zeigerman wrote.

The consensus estimate for Cobenfy’s peak sales is $5.4 billion. BMS expects to see “sales growth” for Cobenfy starting in the second half of 2025 following broad access to Medicare and Medicaid patients, chief commercialization officer Adam Lenkowski said on a call with investors Thursday.