Key Points
- Revenue for the quarter was $12.2 billion, a 9% increase year over year.
- Non-GAAP EPS rose to $2.07, an 18% increase from the previous year's $1.75.
- The company raised its full-year non-GAAP financial guidance for 2024.
Pharmaceutical giant Bristol Myers Squibb (BMY 1.20%)reported Q2 2024 earnings on Friday that showed significant revenue growth driven by its Growth Portfolio segment. Quarterly revenue reached $12.2 billion, a jump of 9% year over year (up 11% when excluding foreign exchange impacts).
Non-GAAP earnings per share (EPS) rose 18% from $1.75 to $2.07. However, GAAP EPS fell year over year to $0.83 from $0.99 due to higher interest expenses and one-time charges related to acquisitions.
Overall, while results showcased strong performance, GAAP results reflected the financial impacts of strategic acquisitions and increased R&D expenditures.
| Data | Q2 2024 | Q2 2023 | Change (YOY) |
|---|---|---|---|
| Revenue | $12.2 billion | $11.2 billion | 9% |
| GAAP EPS | $0.83 | $0.99 | (16%) |
| Non-GAAP EPS | $2.07 | $1.75 | 18% |
| U.S. revenue | $8.8 billion | $7.8 billion | 13% |
| International revenue | $3.4 billion | $3.4 billion | (1%) |
Source: Bristol-Myers Squibb. YOY = Year over year. GAAP = Generally accepted accounting principles.
Company Overview
, a global biopharma leader, focuses on discovering, developing, and delivering medicines in oncology, hematology, immunology, cardiovascular, and neuroscience.
Recently, Bristol Myers turned its attention to expanding its product portfolio through strategic acquisitions and innovation-driven R&D. Key success factors include maintaining market exclusivity, navigating complex regulatory landscapes, and disciplined capital allocation to sustain high R&D investments.
Quarterly Highlights
Bristol Myers reported a notable increase in revenue from its Growth Portfolio segment, which rose 18% year over year to $5.6 billion. Major product contributors included:
- Opdivo: $2.39 billion (16% increase)
- Reblozyl: $425 million (82% increase)
- Opdualag: $235 million (53% increase)
Management noted several product approvals in the report, including the FDA's regulatory OK for Breyanzi in follicular and mantle cell lymphoma. Additionally, subcutaneous nivolumab is under regulatory review in the U.S. and the European Union. Positive Phase 3 results for cendakimab in eosinophilic esophagitis and several strategic regulatory filings, including Krazati and Augtyro, underscored the company's strong pipeline.
However, the quarter was not without challenges. GAAP EPS declined as the company dealt with higher interest expenses and one-time charges from recent acquisitions like RayzeBio. Increased R&D spending, up 28% to $2.9 billion, was driven by IPRD impairments and ongoing development initiatives. Revlimid's international sales saw a 24% decline due to generic competition, emphasizing the importance of market exclusivity for Bristol Myers' portfolio stability.
Bristol Myers' business development activities included strategic acquisitions, most notably RayzeBio and the anticipated U.S. launch of KarXT. The company focused on sustaining its competitive edge through these acquisitions and defending existing patents for key products such as Eliquis and Opdivo.
Compliance milestones were marked by successful regulatory submissions, including expanded indications for Breyanzi and an EMA application for Opdivo plus Yervoy in hepatocellular carcinoma. The company’s elevated R&D spending showcased its commitment to innovation, despite increased costs impacting net income due to larger interest expenses from new debt issuance.
Looking Ahead
Bristol Myers' management raised its revenue guidance to forecast an increase in the upper end of low single-digits and its non-GAAP EPS guidance for full-year 2024 to $0.60-$0.90, reflecting a positive outlook despite prior headwinds. The company emphasized its commitment to strategic acquisitions and R&D investments to sustain growth in key therapeutic areas, including oncology and immunology.
regarding regulatory reviews and product launches, such as the U.S. launch of KarXT and potential approvals for new indications. Additionally, the impacts of increased R&D spending and acquisition-related costs on future earnings will be crucial.
