What Is The One ‘Key Takeaway’ Of Bristol-Myers Squibb’s First Quarter Earnings?
Our Key Takeaway From Q1 2016 Earnings:
‘Bristol-Myers Squibb’s Stock May Attract More Investors’
Positive Observations That Support The Above Belief:
- Shares up ~ 3% in a single day, which has been rare for a big pharma firm in recent quarters
- Pharma sales growth ~ 8.6%, higher than that for competitors such as J&J (5.9%) & Roche (5%)
- Strong immuno-oncology growth with Opdivo sales jumping from $40 million to $704 million
- Eliquis will drive growth at least in the near to mid term
- Currency impact easing, expected to be -1% for full year compared to -7% in 2015
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Long Term Drivers Worth Considering:
A) Opdivo
- Peak sales potential of $6-$7 billion
- Broad range of patients, approved for melanoma, lung cancer & kidney cancer
- Breakthrough designation from FDA for hodgkin lymphoma & head and neck cancer
- Combination therapy with Yervoy gaining ground
- Patent protected until 2026-2027
B) Empliciti
- Peak sales potential of >$4 billion
- Approved for multiple myeloma
- Patent protected until 2026
C) Eliquis
- Peak sales potential of $5 billion, Bristol-Myers Squibb’s share ~ 50%
- Top position as novel anticoagulant in the U.S. & 12 international markets
- Partnership with Pfizer gives strong global reach and marketing
A Note Of Caution:
- Hepatitis drugs could face competition in the U.S. from new branded launches
- Hepatitis C franchise is new, and growing fast, which means competition catching up this soon is ‘bad news’
- Franchise’s revenues grew from $256 million in 2014 to $1.6 billion in 2015
- Therefore, this puts Bristol-Myers Squibb’s future growth at slight risk
We are in the process of updating Bristol-Myers Squibb’s price estimate in the light of recent earnings, and will have an update ready soon.
Have more questions about Bristol-Myers Squibb? See the links below.
- Three Things To Watch Out For Bristol-Myers Squibb This Year
- What’s Bristol-Myers Squibb’s Revenue And Earnings Breakdown?
- What’s Bristol-Myers Squibb’s Fundamental Value Based On Expected 2015 Results?
- How Has Bristol-Myers Squibb’s Revenue Composition Changed Over The Last 5 Years
- By What Percentage Can Bristol-Myers Squibb’s Revenue & EBITDA Grow In The Next 3 Years?
- How Much Revenues Can Bristol-Myers Squibb’s Phase 3 Pipeline Add By 2020?
- Why We Are Bullish On Bristol-Myers Squibb
- Bristol-Myers Squibb Did Well In 2015, And New Drugs Could Keep The Momentum Going
Notes:
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