Bristol Myers Cuts Earnings Outlook As Legacy Drugs Face Generic Erosion

Bristol Myers Squibb & Co (NYSE:BMY) reported second-quarter 2025 revenues of $12.27 billion, beating the consensus of $11.31 billion, almost flat year over year.

U.S. sales slipped 3% to $8.5 billion, while international revenues climbed 10% to $3.8 billion, representing an 8% increase when excluding foreign exchange impacts (Ex-FX).

Growth Portfolio revenues of $6.6 billion increased 18%, or 17% Ex-FX. Revenue growth was primarily driven by the immuno-oncology (IO) portfolio, Breyanzi, Reblozyl, and Camzyos, reflecting the continued strength of Cobenfy (a schizophrenia drug).

Also Read: Is Bristol-Myers Squibb Still An Undervalued Biopharma Play?

Sales of the cancer drug Opdivo increased 7% to $2.56 billion. The arthritis drug Orencia generated sales of $963 million, up 2%. Sales of another cancer drug, Yervoy, increased 16% to $728 million.

Camzyos (a heart drug) generated sales of $260 million, up 87%. The anemia drug Reblozyl generated $568 million in quarter sales, up 34% from a year ago.

Legacy Portfolio revenues of $5.7 billion decreased 14%, or 15% Ex-FX. Demand increased for Eliquis, offset by expected continued generic impact across the remainder of the Legacy Portfolio and the impacts from the U.S. Medicare Part D redesign.

Bristol-Myers reported adjusted earnings of $1.46 per share, missing the consensus of $1.58. GAAP EPS was 64 cents and non-GAAP EPS was $1.46. Both figures include the net impact of 57 cents due to the Acquired IPRD charge associated with the BioNTech SE (NASDAQ:BNTX) strategic partnership worth $11 billion.

Gross margin decreased from 73.2% to 72.5% on a GAAP basis, and from 75.6% to 72.6% on a non-GAAP basis, primarily due to product mix.

Outlook

Bristol Myers Squibb lowered its fiscal 2025 adjusted earnings guidance from $6.70-$7.00 to $6.35-$6.65 per share compared to the consensus of $6.76.

The US drugmaker raised 2025 sales guidance from $45.8 billion-$46.8 billion to $46.5 billion-$47.5 billion compared to the consensus of $46.23 billion. It reiterated gross margin guidance of around 72%.

On Monday, Bristol Myers and Bain Capital announced the creation of a new independent biopharmaceutical company focused on developing new therapies for autoimmune diseases.

The newly formed company launches with five immunology assets in-licensed from Bristol Myers and a $300 million financing commitment that Bain Capital led.

Price Action: BMY stock is trading lower by 3.04% to $44.58 at last check Thursday.

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