US pharmaceutical company Bristol-Myers Squibb (BMS; NYSE: BMY) has released its financial report for the second quarter of 2023, which showed performance below expectations and led to a downward revision in full-year guidance. Revenues for the quarter decreased by 5% year-on-year (YOY) in constant exchange rate terms to USD 11.2 billion.
Generic Erosion Impacts Revlimid Sales
The decline was more significant than anticipated, primarily due to generic competition affecting the multiple myeloma therapy Revlimid (lenalidomide). Sales for Revlimid fell by 41% over the quarter, prompting BMS to revise its full-year sales forecast downward from USD 6.5 billion to USD 5.5 billion. This factor contributed to BMS’s decision to downgrade its guidance for the full-year overall performance, with revenues now expected to contract in the low-single digits, contrasting the previous expectation of around a 2% expansion.
Regional Sales Declines and Top-Selling Products
US market sales declined by 6%, while International markets experienced a 5% dip. Despite these declines, the two top-selling products globally were the blood thinner Eliquis (apixaban), with USD 3.2 billion in sales and a 1% decrease, and the PD-1 inhibitor Opdivo (nivolumab), which saw a 5% YOY increase in sales, reaching USD 2.15 billion.
CEO Comments on Performance and Pipeline Progress
During the earnings conference call, CEO Giovanni Caforio attributed part of the poor performance to unusually high volumes of free Revlimid supplies distributed to patients in the United States through various patient-access schemes. Caforio also highlighted that BMS’s new-drug portfolio remains on track, with its worldwide contribution to sales increasing by 79% to USD 862 million. This portfolio includes therapies such as Opdualag (nivolumab/relatlimab), Reblozyl (luspatercept), Breyanzi (lisocabtagene maraleucel), Abecma (idecabtagene vicleucel), Camzyos (mavacamten), and Zeposia (ozanimod). Caforio stated, “We continue to expect to deliver USD 10 billion to USD 13 billion of revenue from this portfolio in 2025.” Meanwhile, both Opdivo and Eliquis are anticipated to face generic competition in the US starting from 2028.-Fineline Info & Tech
