Bristol-Myers Squibb Earnings Preview: Yervoy, Opdivo And Eliquis In Focus

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Bristol-Myers Squibb (NYSE:BMY) will report its Q1 2015 earnings on April 28th. We expect the company to report strong operational growth for the oncology business, a ramp up in sales of Eliquis, and the continued adoption of hepatitis C drug Daklinza. However, adverse currency effects will weigh on the company’s results as more than 50% of its revenues come from international markets. We have already seen J&J’s results battered by strengthening dollar. In addition, Bristol-Myers Squibb company will face the impact of expiry of Abilify’s patent in its upcoming results. Abilify is the biggest selling anti-depressant in the U.S. and accounted for about $2 billion of Bristol-Myers Squibb’s revenues in 2014. The company has already lost the marketing rights in EU. The impact will intensify from second quarter onward.

Our current price estimate for Bristol-Myers Squibb stands at $50.70, implying a discount of about 20% to the market.

See our complete analysis for Bristol-Myers Squibb


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Cardiovascular Business Will See Support From Eliquis

We expect Eliquis to continue its strong growth. The drug’s revenues stood at $281 million in Q4 2015 as compared to just $71 million during the same period a year ago. Eqliuis’ adoption among healthcare specialists has been encouraging and the approval for multiple conditions apart from atrial fibrillation has helped sustain the momentum. The European Commission approved the drug for the treatment of Deep Vein Thrombosis and  Pulmonary Embolisms last year, as well as for the prevention of recurrence of these conditions. Eliquis’ sales for 2014 stood at $774 million, registering an increase of 430%. The growth potential is huge and we expect it to become multi-billion dollar drug going forward. It is also one of the few promising patented drugs in cardiovascular market which has been flooded with generics.

Yervoy And Opdivo Will Lead Oncology Growth

Needless to say, Bristol-Myers Squibb’s oncology business will see strong revenue growth driven by ramp up in sales of Yervoy and Opdivo (Nivolumab). The segment’s revenues crossed $3 billion in 2014, surging close to 20% year over year. Yervoy’s sales jumped 36% for the full year and fourth quarter’s growth was even higher. We expect the momentum to spill in to the company’s Q1 2015 results. Yervoy has been approved for treatment of melanoma, a type of skin cancer. In addition, we expect leukemia drug Sprycel to continue its double digit growth. Opdivo’s sales will benefit from additional approval granted by the FDA. The drug was initially approved for melanoma, but was granted approval in early March for the treatment of patients who have been previously treated for metastatic squamous non-small cell lung cancer.

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