Bristol-Myers (BMY) Q3 earnings preview: New indications, pipeline to bolster recovery

Bristol-Myers Squibb (NYSE: BMY) will be publishing its September-quarter earnings Thursday before the opening bell. The bio-pharmaceutical company is expected to earn $1.07 per share on revenues of $5.89 billion, which represents a 3.5% annual increase. The fact that the bottom-line topped expectations in each of the trailing four quarters adds to the chances of another beat.

Opdivo, the company’s popular immuno-oncology drug which secured the FDA’s nod for multiple indications, will be a key growth driver in the to-be-reported quarter, as it was in the previous quarter. The drug is currently prescribed widely for hepatocellular carcinoma, melanoma and a certain type of lung cancer.

Brand Power

The rapid increase in the market share of Eliquis, the blood thinner that contributed significantly to the top-line in the second quarter, is estimated to have added to growth this time too. The results should also get a boost from strong sales for the other key products, including Orencia and Sprycel, mainly in the U.S and Europe.

Related: Alexion Pharma Q3 2019 Earnings Snapshot

The market will be closely following the event for updates on Bristol-Myers’ solid pipeline and clinical trials, including the advanced-stage study on a combination of Opdivo and Yervoy for the treatment of lung cancer – which met the primary endpoint recently.

Q2 Results

In the second quarter, earnings and revenues grew in double digits to $1.18 per share and $6.3 billion, respectively, and topped expectations. However, the management revised down its full-year earnings guidance.

Celgene Deal

The post-earnings mood in the market will be crucial for the stock, which remains in the spotlight as the merger with biotech firm Celgene moves closer to completion – currently expected by year-end. Recently, Celgene agreed to sell its psoriasis drug Otezla to Amgen (AMGN), in a multi-billion deal, as required by the regulators.

Earlier this week, Pfizer (NYSE: PFE) reported lower revenues and earnings for the third quarter. The results, however, topped the market’s expectations. The management also revised up the full-year earnings and revenue guidance.

Related: Bristol-Myers Q2 2019 Earnings Conference Call Transcript

Bristol-Myers’ stock plunged to a six-year low in early July, but bounced back in the following weeks. The shares moved up 15% since the beginning of the year and 10% in the past twelve months.

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