BMS Delivers Q3 Beat and Increases 2024 Guidance Amid Strong Demand for Older and Newer Drugs

Bristol Myers Squibb on Thursday spoke of strong year-on-year growth in the third quarter of 2024, with revenue handily exceeding the consensus estimate, driven by the older and newer products.

Based on third-quarter performance, BMS has raised its full-year revenue guidance and now expects year-over-year growth of approximately 5% – up from its previous forecast of high-end growth in the low single digits. The company’s full-year diluted earnings per share (EPS) outlook was also raised to $0.90 from $0.75 to $0.95 previously.

“Our overall business mix is ​​beginning to transform as our growth portfolio becomes a bigger part,” CEO Christopher Boerner said on an investor call Thursday, highlighting the combination of its pipeline — which is approaching several “near-term catalysts” — and a “disciplined focus on expense management.”

These factors, Boerner said, are critical to the company’s “focus on executing short-term business while laying the foundation for long-term sustainable growth.”

In the third quarter, BMS reported total global revenue of $11.9 billion – up 8% year-over-year at constant exchange rates – and a gain of 6% versus the consensus estimate of $11.3 billion.

In an investor note, William Blair analyst Matt Phipps attributed BMS’ strong quarter to the reliable performance of its legacy brands – including Revlimid and Eliquis – and the “traction” of its growth portfolio brands such as Breyanzi, Abecma and Reblozyl, which “all beating consensus estimates.”

Truist Securities analyst Srikripa Devarakonda said in an investor note that multiple myeloma drug Revlimid fell “less than expected.” Revenue fell 1% to $1.4 billion in the quarter, but still exceeded the $1.1 billion consensus. The blood thinner Eliquis remains BMS’s best-performing product, up 11% year over year and generating just over $3 billion in revenue in the third quarter.

BMS’s earnings call focused primarily on the recently approved schizophrenia therapy Cobenfy won FDA approval in September 2024. Boerner said the drug has “multi-billion dollar potential” and will help the company accelerate its growth, though the company’s optimism seemed largely measured.

BMO Capital Markets analyst Evan Seigerman said in an investor note that “while we appreciate the conservatism in neuropsychology, management commentary has remained somewhat muted around revenue expectations,” especially as “the launch is expected to be a slow progression of schizophrenia.”

Seigerman, on the other hand, expects Alzheimer’s psychosis to be a stronger opportunity for Cobenfy “in terms of sentiment.” Cobenfy does is currently in Phase III development for this indication.

“While we are encouraged by Bristol’s progress in the quarter on revenue and costs, the transformative change Bristol needs will come from the pipeline,” Seigerman wrote.

The consensus peak revenue for Cobenfy is $5.4 billion. BMS expects a “sales increase” for Cobenfy starting in the second half of 2025, following broad access to Medicare and Medicaid patients, Chief Commercialization Officer Adam Lenkowsky said during Thursday’s investor call.