Bristol Myers says it needs another year to hit target for new drugs

Mirati Therapeutics

26/10/2023 11:59

By Michael Erman
       Oct 26 (Reuters) - Drugmaker Bristol Myers Squibb
 BMY.N  on Thursday pushed back by a year the time frame for its
current new-product portfolio to hit $10 billion in sales as the
ramp-up of new drugs including anemia treatment Reblozyl,
psoriasis drug Sotyktu, and multiple sclerosis drug Zeposia
takes longer than expected.
    The company said it now expects greater than $10 billion of
new-product sales in 2026. It had previously forecast $10
billion to $13 billion of sales for the portfolio in 2025.
    "The long-term potential of these brands remains the same,"
BMS Chief Financial Officer David Elkins said in an interview,
noting that the drugs are on pace to hit around $3.5 billion in
sales this year.
    Bristol Myers reported that it earned $4.1 billion, or $2
per share, in the third quarter, down from $4.3 billion, or
$1.99 a share, a year earlier. Analysts, on average, had
expected earnings per share of $1.76.
    The company raised the bottom end of the range for its
full-year earnings per share forecast. It now expects earnings
per share in the range of $7.50 to $7.65, up from its previous
target of $7.35 to $7.65.
    Chief Operating Officer Chris Boerner is expected to become
chief executive of Bristol Myers next month, replacing current
CEO Giovanni Caforio.
    The New Jersey-based company has been pressured by declining
demand for its top drug, blood cancer treatment Revlimid, which
now has generic competition. Bristol Myers is also expected to
face revenue losses for two of its other top sellers, cancer
immunotherapy Opdivo and blood thinner Eliquis, as they lose
patent exclusivity later this decade.
    Earlier in October, BMS agreed to buy cancer drugmaker
Mirati Therapeutics  MRTX.O  for up to $5.8 billion, in an
attempt to diversify its oncology business.
    Shares of Bristol Myers closed at $56.61 on Wednesday. They
are down over 20% this year, while the S&P 500 index is up
nearly 10%.

 (Reporting by Michael Erman; Editing by Leslie Adler)
 ((michael.erman@thomsonreuters.com;))