Q3 2023 Earnings Summary
Reported on Jan 4, 2025 (Before Market Open)
Pre-Earnings Price$56.61Last close (Oct 25, 2023)
Post-Earnings Price$53.96Open (Oct 26, 2023)
Price Change
$-2.65(-4.68%)
- Strong performance and growth potential of key products: Bristol-Myers Squibb's new products like Opdualag, Reblozyl, and Breyanzi are either meeting or exceeding expectations, demonstrating strong market performance and anticipated to continue robust growth into 2024. The company sees very strong manufacturing performance for Breyanzi, ensuring improved supply and quality.
- Confidence in long-term potential of emerging products: Despite slower initial uptake, the company maintains strong conviction in the long-term potential of products like Camzyos and Sotyktu, viewing the challenge as a matter of timing rather than potential. Strategic efforts are underway to accelerate their growth, including expanding prescriber breadth, improving access, and enhancing patient and physician education.
- Strategic business development to drive growth: Bristol-Myers Squibb is committed to enhancing its growth profile through strategic acquisitions, exemplified by the planned acquisition of Mirati, which diversifies its oncology portfolio towards targeted therapies. Business development remains a top priority for capital allocation, focusing on scientifically interesting, strategically relevant, and financially sound opportunities to enhance the company's growth trajectory.
- Slower-than-expected growth for key new products like Camzyos and Sotyktu is delaying peak sales and impacting revenue projections. The company acknowledged that these products are taking longer to gain traction, shifting their $10 billion new product sales target from 2025 to 2026.
- Underperformance of products like Abecma and Zeposia due to competition and market dynamics is impacting sales. Abecma faces increased competition from other BCMA-targeting agents, and Zeposia struggles with access challenges, leading management to consider a "launch reboot" strategy.
- Declining revenues from mature products like Revlimid and reduced operating margin guidance raise concerns. Revlimid sales are expected to decrease from $6 billion in 2023 to about $4 billion in 2024, and the company lowered its operating margin guidance from above 40% to above 37%, partly due to increased investments and dilution from the Mirati acquisition.