Shares of Bristol Myers Squibb (BMY) experienced a decline in premarket trading following the company’s report of lower-than-expected second-quarter sales and a revision of its financial outlook due to increased competition from generic alternatives.
Second-Quarter Results
Bristol Myers, a leading biopharmaceutical product manufacturer, posted adjusted earnings of $1.75 per share with sales totaling $11.2 billion in the second quarter. Unfortunately, these figures represented a 5.6% decline compared to the previous year’s results. Analysts, according to FactSet, had anticipated earnings of $1.98 per share on revenue of $11.8 billion.
Factors Contributing to Sales Shortfall
The decrease in sales was primarily attributed to weaker performances from the company’s cancer-fighting drugs. Specifically, Revlimid sales were down 41% in comparison to the previous year. Additionally, Pomalyst sales were affected by generic competition and an increase in patients receiving donated drugs from Bristol Myers’ foundation.
Revised Outlook for 2023
Based on these challenges, Bristol Myers has adjusted its outlook for 2023. The company now forecasts a low single-digit percentage decrease in revenue, compared to the previously expected 2% increase that was forecasted in April. Adjusted profit for the year is estimated to be in the range of $7.35 to $7.65 per share, down from the prior forecast of $7.95 to $8.25 per share. Furthermore, Revlimid sales for the year are expected to reach approximately $5.5 billion, compared to prior expectations of $6.5 billion.
It is clear that Bristol Myers Squibb faces significant hurdles as it navigates growing competition in the pharmaceutical market.