Bristol-Myers Gets a Revenue Boost from Opdivo

Bristol-Myers Squibb Co. said its second-quarter revenue rose 7% with a boost from sales of its Opdivo immunotherapy drug and its hepatitis C franchise.

Revenue increased to $4.2 billion from $3.89 billion a year earlier. Excluding currency effects, the growth was 16%. Analysts polled by Thomson Reuters expected revenue of $3.72 billion.

The better-than-expected revenue growth contributed to the pharmaceutical company raising full year guidance. For the year, the company raised its per-share earnings estimate by a dime and now expects $1.70 to $1.80.

Bristol-Myers has gained attention as a leader in developing drugs that enlist the power of the immune system against cancer.

Opdivo, initially approved in late December, contributed sales of $122 million in its second quarter on the market, up sharply from $40 million in the first quarter. Sales of Yervoy, another skin-cancer immunotherapy, fell 8% from a year earlier to $296 million, amid a 21% decline in U.S. sales—partly owing to the growth of Opdivo for skin cancer in the U.S.

The company's hepatitis C franchise contributed sales of $479 million, boosted by recognition of $170 million previously deferred revenue in France related to an early access program.

The earnings report comes two days after Bristol-Myers said a late-stage trial of skin-cancer drug Opdivo was stopped early because the drug provided superior overall survival in advanced renal-cell carcinoma patients, further strengthening Bristol-Myer's position in immunotherapies. The drug also received U.S. regulatory approval to treat lung cancer earlier this year.

Also, in a recent study, a combination of Opdivo and the company's other skin cancer drug Yervoy delayed the progression of melanoma longer than either drug alone—results that could support wider use of both drugs.

In addition to clinical trials of the immunotherapies to treat other cancers, Bristol-Myers also has continued to expand its pipeline through deals, including April acquisition of immunotherapy drug developer Flexus and licensing of gene-therapy cardiovascular programs from uniQure.

Overall, Bristol-Myers reported a loss of $130 million, or eight cents a share, up from $333 million, or 20 cents a share, a year earlier. The latest period a charge of 48 cents a share related to the Flexus acquisition. Excluding such one-time items, per-share earnings rose to 53 cents from 48 cents. Analysts expected per-share profit of 36 cents.

Write to Tess Stynes at [e-mail]

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