(Bloomberg) -- Bristol Myers Squibb Co. raised its 2024 earnings guidance after reporting better-than-expected revenue and profit, fueled by demand for the blood-thinner Eliquis and several newer treatments.
Adjusted earnings for the year will be between 75 cents and 95 cents a share, the Princeton, New Jersey-based drugmaker said Thursday in a statement, an increase of 10 cents at the midpoint of its prior projection.
The company’s shares rose as much as 6.7% in New York, their biggest intra-day increase since July.
The results could give investors more confidence as Bristol’s key drugs face stiff competition and new pricing pressure. The company’s shares had been up just 2.6% this year through Wednesday’s close, compared with a 22% increase in the S&P 500.
Two of its biggest sellers — Eliquis and cancer immunotherapy Opdivo — will lose patent exclusivity in the coming years. Cancer blockbuster Revlimid has been suffering from generic competition, while Eliquis will be one of the first drugs to face US government price negotiations in 2026.
Eliquis sales grew 11% compared with the same period a year ago, beating analysts’ estimates. Cantor analyst Olivia Brayer called Eliquis “a standout this quarter.” Revlimid also beat Wall Street’s expectations.
The heart drug Camzyos, anemia treatment Reblozyl and lymphoma therapy Breyanzi — three newer products that are important to the drugmaker’s future — also outperformed expectations.
Bristol’s newer drugs — what it calls its “growth portfolio” — are nearing half of the company’s business, according to Chief Financial Officer David Elkins.
“You’re really able to see the future of the company,” Elkins said in an interview.
Bristol’s total sales for the quarter were $11.9 billion, beating analysts’ average estimate of $11.3 billion. The company posted adjusted third-quarter earnings per share of $1.80, which was higher than analysts’ expectation of $1.49.
Bristol spent more than $20 billion last year to bolster its pipeline. The $14 billion acquisition of Karuna Therapeutics brought in a treatment for schizophrenia, which gained US approval in late September as the first new type of drug for the mental illness in seven decades. On Monday, Bristol began selling that drug, Cobenfy, and the early feedback from doctors “has been very positive,” said Adam Lenkowsky, Bristol’s chief commercialization officer.
Going forward, the big test for Bristol will be the Cobenfy launch, said Bloomberg Intelligence analyst John Murphy. The company needs to “slowly win back investor trust that they can and will deliver,” he said.
Last year, Bristol also agreed to buy RayzeBio Inc., maker of investigational radiation therapies, for $4.1 billion, and Mirati Therapeutics Inc., a cancer drugmaker, for $4.8 billion.
Bristol is working through a $1.5 billion cost-reduction program, eliminating about 2,200 jobs and abandoning about 12 drug development programs. Chief Executive Officer Christopher Boerner, who took the reins in November of last year, has said the company will return to sustained growth starting around 2028.
(Updates with shares, analyst comment starting in third paragraph.)
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