Bristol-Myers Revenue Rises 1%, 2016 Profit Outlook Beats Expectations

By Tess Stynes 

Bristol-Myers Squibb Co. said its fourth-quarter revenue rose 1% amid continued expansion of the pharmaceutical company's Opdivo cancer immunotherapy franchise and sales growth of other key drugs.

Earnings, excluding certain one-time items, and revenue beat expectations. The company's 2016 per-share earnings guidance also topped Wall Street views.

Bristol-Myers forecast per-share earnings of $2.30 to $2.40 and revenue growth in the mid-single digits for 2016. Analysts polled by Thomson Reuters expected per-share profit of $2.29 and revenue growth of 6% to $17.4 billion.

For the three-month period ended Dec. 31, Bristol-Myers reported that revenue increased to $4.29 billion from $4.26 billion a year earlier. Excluding currency effects, the growth was 6%. Analysts expected revenue of $4.15 billion.

Bristol-Myers has gained attention as a leader in developing drugs that enlist the power of the immune system against cancer. The company's Opdivo, also known as nivolumab, was first approved for sale in December 2014 for advanced melanoma and has since been approved for other indications including lung cancer and renal cancer.

For the latest quarter, Bristol-Myers reported Opdivo sales of $475 million, bringing the total since its launch to $948 million.

Analysts had expected Opdivo will amass billions of dollars in yearly sales, as its launch progresses and its use broadens to other cancers.

Sales of Yervoy, another skin-cancer immunotherapy drug declined again in the latest quarter, falling 28% to $265 million-partly because of Opdivo's growth, particularly in skin cancer. Bristol's Yervoy was the first immunotherapy, approved in 2011.

Overall, Bristol-Myers reported a loss of $138 million, or 8 cents a share, compared with a year-earlier profit of $13 million, or a penny a share, a year earlier. Excluding acquisition- and collaboration-deal-related charges, and other items, per-share earnings fell to 38 cents from 46 cents. Analysts expected an adjusted per-share profit of 28 cents.

Gross margin rose to 77.8% from 77.3%.

Among other key drugs, sales of anticlotting drug Eliquis sales more than doubled to $602 million from $281 million. Sales of its hepatitis C franchise drugs also more than doubled, rising to $458 million from $207 million.

Write to Tess Stynes at [e-mail]

(END) Dow Jones Newswires

January 28, 2016 07:14 ET (12:14 GMT)

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