By Deena Beasley and Sneha S K
Oct 29 (Reuters) – Bristol Myers Squibb raised its full-year revenue forecast on Thursday, citing strong sales of its newer medicines, but lowered its 2026 earnings per share projection due to a hefty acquisition-related charge.
The US drugmaker now expects 2026 adjusted earnings of $6.35 to $6.55 per share on revenue of $49.75 billion to $50.25 billion. That compares with its previous estimates of $6.75 to $7.00 a share and $49 billion to $50 billion in revenue.
Wall Street analysts, on average, had forecast full-year EPS of $6.49 on revenue of $49.89 billion, according to LSEG data.
Third-quarter revenue rose 7% to $13.1 billion, beating the $12.75 billion forecast by analysts. Quarterly adjusted earnings came in at $1.35 per share, which topped Wall Street expectations by 21 cents. The company took a charge of 58 cents in the quarter.
“While the better-than-expected (results) is welcome news, the pipeline updates remain the critical driver for investors,” said Cantor Fitzgerald analyst Carter Gould.
Bristol Myers’ newer drugs continued to drive growth, with sales rising 12% from a year earlier, led by cancer cell therapy Breyanzi and anemia drug Reblozyl.
Sales of infused cancer immunotherapy Opdivo fell 6% from a year earlier to $2.37 billion, while sales of Qvantig, a newer subcutaneous version of the same drug, more than tripled to $334 million.
“We delivered strong commercial performance with the medicines that we have today, and we also made real progress on what’s coming next across our pipeline,” Adam Lenkowsky, the company’s chief commercialization officer, said in an interview.
Guggenheim analysts said they were encouraged by the strong quarterly performance of the company’s growth products, while older medicines continued to support cash flow.
“BMY’s steady quarterly performances should position the company for later-decade growth as more clinical trials read out,” the analysts said.
The company said quarterly sales of its “legacy” medicines rose 1% cumulatively, including a 25% jump in sales of blood thinner Eliquis, which it shares with Pfizer.
Investors are closely watching the potential expansion of Cobenfy into Alzheimer’s disease treatment and the development of blood thinner milvexian, both seen as important drivers of future growth.
Bristol expects data from trials testing milvexian in atrial fibrillation and Cobenfy for Alzheimer’s-related psychosis next year.
“We feel good about the momentum we have going into Q4. We hope that will continue into 2027. We’ve got some wind at our back with respect to late-stage development,” said CEO Chris Boerner during the company’s call to discuss the results.
2027 TARGET FOR TRIAL RESTART
Bristol is working with the FDA with the aim of resuming enrollment in clinical trials of its experimental cell therapy zolacabtagene autoleucel in autoimmune diseases in early 2027, Lenkowsky said.
In September, the company implemented a voluntary pause on the studies to review safety data, after Novartis halted eight clinical trials of its experimental cell therapy following three patient deaths.
Chief Medical Officer Cristian Massacesi said an extensive review found “the root cause of the safety issue” involved a reagent used in the manufacturing process.
“We have now made the proper adjustment of it, and we are working with authorities to restart the clinical program as soon as possible,” Massacesi said.
Last week, Bristol disclosed the death of a patient enrolled in a trial of the cell therapy for treatment of relapsing or progressive forms of multiple sclerosis.
(Reporting By Deena Beasley in Los Angeles and Sneha S K in Bengaluru; Editing by Bill Berkrot)
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