Bristol Myers Squibb's Revlimid took fewer than expected generic hits in the fourth quarter, resulting in a beat and a pop for BMY stock.
Overall, quarterly sales tumbled 5% to $11.41 billion, yet beat projections for $11.19 billion. William Blair analyst Matt Phipps credited the beat to better-than-predicted sales of Revlimid, a cancer drug threatened by generics that brought in $2.26 billion in sales, down 32%. Still, that topped views for $1.91 billion, according to FactSet.
However, guidance for $6.5 billion in Revlimid sales this year "suggests erosion will accelerate," he said in a note to clients.
In response, BMY stock rose 2.1% and closed at 72.75 on the stock market today. Shares are forming a flat base with a buy point at 81.54, according to MarketSmith.com.
BMY Stock: New Products Key
In addition to the better-than-expected sales, adjusted profit also came in ahead of projections at $1.82 per share. Analysts called for per-share earnings of $1.73. Earnings fell 1% year over year.
Among Bristol's biggest products, sales of blood thinner Eliquis inched ahead 1% to $2.69 billion and Opdivo sales ramped up 11% to $2.22 billion. Opdivo is a well-known cancer treatment. In constant currency, sales increased a respective 6% and 16%, Bristol Myers said in a news release.
BMY stock analysts are also closely watching the company's portfolio of new products. Revenue from Reblozyl, an anemia treatment for patients with beta thalassemia and some cancers, surged 32% to $199 million. Abecma, a multiple myeloma treatment, generated $125 million. Sales rocketed 81% vs. the year-earlier period. Excluding the impact of exchange rates, sales grew a respective 34% and 87%.
"Our experts remain enthusiastic about Bristol's exciting new product portfolio with a focus on Reblozyl and Abecma," Analyst Lee Brown from research firm Third Bridge said in a note.
For the year, the pharmaceutical company guided to adjusted earnings of $7.95-$8.25 per share and 2% sales growth. The earnings guidance easily beat calls for $7.99 per share while the sales outlook was in line with BMY stock analysts' forecast for $47.18 billion.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
