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Bristol-Myers Squibb Company (BMY - Free Report) reported in-line fourth-quarter 2021 earnings while sales beat estimates on strong performance of Eliquis and Opdivo.
Fourth-quarter earnings of $1.83 per share matched the Zacks Consensus Estimate and increased from $1.46 reported in the year-ago quarter.
Total revenues of $11.98 billion surpassed the Zacks Consensus Estimate of $11.96 billion and increased 8% from the year-ago period. The year-over-year growth was primarily driven by blood thinner drug Eliquis, immuno-oncology and new product portfolios.
Shares of the company have gained 4.1% in the past year against the industry's decline of 38%.
Image Source: Zacks Investment Research
Quarterly Details
Revenues increased 11% to $7.5 billion in the United States. Revenues were up 4% outside the country. Ex-U.S. revenues were up 7% when adjusted for foreign exchange impact.
Myeloma drug, Revlimid, contributed $3.3 billion to revenues and was the top revenue generator for Bristol-Myers. However, sales were up only 1% in the quarter.
Eliquis maintained momentum for the company as sales increased 18% to $2.7 billion. We note that Bristol-Myers has a collaboration agreement with Pfizer (PFE - Free Report) for Eliquis.
Both the companies collaborated in 2007 for Eliquis. Pfizer funds between 50% and 60% of all development costs depending on the study. Profits and losses are shared equally on a global basis except in certain countries where Pfizer commercializes Eliquis and pays BMY a sales-based fee.
Sales of immuno-oncology drug Opdivo, approved for multiple cancer indications, were up 11% year over year to $2 billion. Sales returned to growth in the second half after a slowdown earlier in 2021. Label expansion of the drug boosted sales.
Sales of rheumatoid arthritis drug, Orencia, were flat at $864 million.
Another MM drug, Pomalyst, generated sales of $854 million, up 2% year over year.
Leukemia drug, Sprycel, raked in sales of $555 million, down 2% year over year. Melanoma drug, Yervoy, contributed $545 million to the top line, up 16%.
Abraxane generated sales of $305 million, up 3% year over year.
MM drug, Empliciti, recorded sales of $81 million, down 11% year over year.
New drugs like Reblozyl generated sales of $151 million, up 31% year over year. CAR T cell therapies Breyanzi sales came in at $40 million and Abecma sales totaled $63 million. Inrebic generated sales of $20 million. Onureg sales came in at $25 million and Zeposia sales totaled $48 million.
Adjusted research and development expenses increased 3% to $2.6 billion in
the quarter, primarily due to higher costs related to investments in the overall portfolio. Adjusted marketing, selling and administrative expenses decreased 5%. Gross margin increased to 80.3% from 79.8% in the quarter.
2021 Results
Revenues came in at $46.4 billion, meeting the Zacks Consensus Estimate and were up 9% from 2020. Earnings per share increased 17% to $7.51 and beat the Zacks Consensus Estimate by a penny.
2022 Guidance
Bristol-Myers expects 2022 earnings of $7.65-$7.95. The Zacks Consensus Estimate for earnings is pegged at $7.83 per share.
Key Pipeline Updates
The FDA extended the review of the new drug application (NDA) for mavacamten for the treatment of patients with symptomatic obstructive hypertrophic cardiomyopathy (oHCM) to Apr 28, 2022, to get sufficient time to review information pertaining to updates to the proposed Risk Evaluation Mitigation Strategy (REMS).
The FDA has accepted for priority review the supplemental biologics license application (sBLA) for Reblozyl for the treatment of anemia in adults with non-transfusion dependent (NTD) beta thalassemia. The FDA has set a target action date of Mar 27, 2022. The EMA also validated the Type II variation for Reblozyl for NTD beta thalassemia.
In November, BMY announced three regulatory applications for pipeline candidate deucravacitinib have been accepted for review. The FDA has accepted the NDA and the EMA has validated the Marketing Authorization Application for deucravacitinib for the treatment of adults with moderate to severe plaque psoriasis. The FDA has assigned a target action date of Sep 10, 2022. Japan's Ministry of Health, Labour and Welfare also accepted the NDA for deucravacitinib to treat adults with moderate to severe plaque psoriasis, pustular psoriasis and erythrodermic psoriasis.
Bristol Myers Squibb Company Price, Consensus and EPS Surprise
Bristol-Myers’ performance in the fourth quarter of 2021 was encouraging as key drugs, Revlimid, Eliquis and Opdivo, maintained momentum for the company. The approval of new drugs adds a new stream of revenues, which should boost growth in the coming quarters. The pipeline progress has been impressive and strategic collaborations will further expand the portfolio.
However, Revlimid is expected to face generics soon, which will adversely impact sales.
Bristol-Myers currently carries a Zacks Rank #4 (Sell).
Vir Biotechnology’s earnings per share estimates for 2022 have increased from $4.77 to $6.53 in the past 30 days. VIR beat estimates in two of the last four quarters, missing the same on the other two occasions, the average surprise being 12.95%.
The consensus estimate for 2022 earnings for Vertex has increased $1.01 over the past 60 days to $14.33. Shares of VRTX gained 14.1% in the past year.
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Bristol-Myers (BMY) Q4 Earnings Meet Estimates, Sales Beat
Bristol-Myers Squibb Company (BMY - Free Report) reported in-line fourth-quarter 2021 earnings while sales beat estimates on strong performance of Eliquis and Opdivo.
Fourth-quarter earnings of $1.83 per share matched the Zacks Consensus Estimate and increased from $1.46 reported in the year-ago quarter.
Total revenues of $11.98 billion surpassed the Zacks Consensus Estimate of $11.96 billion and increased 8% from the year-ago period. The year-over-year growth was primarily driven by blood thinner drug Eliquis, immuno-oncology and new product portfolios.
Shares of the company have gained 4.1% in the past year against the industry's decline of 38%.
Quarterly Details
Revenues increased 11% to $7.5 billion in the United States. Revenues were up 4% outside the country. Ex-U.S. revenues were up 7% when adjusted for foreign exchange impact.
Myeloma drug, Revlimid, contributed $3.3 billion to revenues and was the top revenue generator for Bristol-Myers. However, sales were up only 1% in the quarter.
Eliquis maintained momentum for the company as sales increased 18% to $2.7 billion. We note that Bristol-Myers has a collaboration agreement with Pfizer (PFE - Free Report) for Eliquis.
Both the companies collaborated in 2007 for Eliquis. Pfizer funds between 50% and 60% of all development costs depending on the study. Profits and losses are shared equally on a global basis except in certain countries where Pfizer commercializes Eliquis and pays BMY a sales-based fee.
Sales of immuno-oncology drug Opdivo, approved for multiple cancer indications, were up 11% year over year to $2 billion. Sales returned to growth in the second half after a slowdown earlier in 2021. Label expansion of the drug boosted sales.
Sales of rheumatoid arthritis drug, Orencia, were flat at $864 million.
Another MM drug, Pomalyst, generated sales of $854 million, up 2% year over year.
Leukemia drug, Sprycel, raked in sales of $555 million, down 2% year over year. Melanoma drug, Yervoy, contributed $545 million to the top line, up 16%.
Abraxane generated sales of $305 million, up 3% year over year.
MM drug, Empliciti, recorded sales of $81 million, down 11% year over year.
New drugs like Reblozyl generated sales of $151 million, up 31% year over year. CAR T cell therapies Breyanzi sales came in at $40 million and Abecma sales totaled $63 million. Inrebic generated sales of $20 million. Onureg sales came in at $25 million and Zeposia sales totaled $48 million.
Adjusted research and development expenses increased 3% to $2.6 billion in
the quarter, primarily due to higher costs related to investments in the overall portfolio. Adjusted marketing, selling and administrative expenses decreased 5%. Gross margin increased to 80.3% from 79.8% in the quarter.
2021 Results
Revenues came in at $46.4 billion, meeting the Zacks Consensus Estimate and were up 9% from 2020. Earnings per share increased 17% to $7.51 and beat the Zacks Consensus Estimate by a penny.
2022 Guidance
Bristol-Myers expects 2022 earnings of $7.65-$7.95. The Zacks Consensus Estimate for earnings is pegged at $7.83 per share.
Key Pipeline Updates
The FDA extended the review of the new drug application (NDA) for mavacamten for the treatment of patients with symptomatic obstructive hypertrophic cardiomyopathy (oHCM) to Apr 28, 2022, to get sufficient time to review information pertaining to updates to the proposed Risk Evaluation Mitigation Strategy (REMS).
The FDA has accepted for priority review the supplemental biologics license application (sBLA) for Reblozyl for the treatment of anemia in adults with non-transfusion dependent (NTD) beta thalassemia. The FDA has set a target action date of Mar 27, 2022. The EMA also validated the Type II variation for Reblozyl for NTD beta thalassemia.
In November, BMY announced three regulatory applications for pipeline candidate deucravacitinib have been accepted for review. The FDA has accepted the NDA and the EMA has validated the Marketing Authorization Application for deucravacitinib for the treatment of adults with moderate to severe plaque psoriasis. The FDA has assigned a target action date of Sep 10, 2022. Japan's Ministry of Health, Labour and Welfare also accepted the NDA for deucravacitinib to treat adults with moderate to severe plaque psoriasis, pustular psoriasis and erythrodermic psoriasis.
Bristol Myers Squibb Company Price, Consensus and EPS Surprise
Bristol Myers Squibb Company price-consensus-eps-surprise-chart | Bristol Myers Squibb Company Quote
Our Take
Bristol-Myers’ performance in the fourth quarter of 2021 was encouraging as key drugs, Revlimid, Eliquis and Opdivo, maintained momentum for the company. The approval of new drugs adds a new stream of revenues, which should boost growth in the coming quarters. The pipeline progress has been impressive and strategic collaborations will further expand the portfolio.
However, Revlimid is expected to face generics soon, which will adversely impact sales.
Bristol-Myers currently carries a Zacks Rank #4 (Sell).
A couple of better-ranked stock in the biotech sector are Vir Biotechnology (VIR - Free Report) and Vertex Pharmaceuticals (VRTX - Free Report) . While Vir sports a Zacks Rank #1 (Strong Buy), Vertex carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Vir Biotechnology’s earnings per share estimates for 2022 have increased from $4.77 to $6.53 in the past 30 days. VIR beat estimates in two of the last four quarters, missing the same on the other two occasions, the average surprise being 12.95%.
The consensus estimate for 2022 earnings for Vertex has increased $1.01 over the past 60 days to $14.33. Shares of VRTX gained 14.1% in the past year.