Opdivo in Focus
Like in the past, the key revenue driver will be Bristol’s immuno-oncology drug Opdivo, which has been approved for additional use in the treatment of hepatocellular carcinoma, melanoma, and renal cell carcinoma. Among others, blood thinner drug Eliquis is estimated to have maintained the strong performance. The other promising products are Orencia (arthritis) and oncology drug Sprycel.
Updates
These positive factors will likely be partially offset by weakness in the mature products and virology businesses. Investors will also be looking for updates on the ongoing clinical trials of Opdivo, which keeps expanding market share outside the U.S. However, the recent withdrawal of EU application for Opdivo, in advanced non-small cell lung cancer, has come as a setback for the drug.
Q3 Performance
Earnings, excluding one-off items, increased to $1.17 per share and topped the estimates in the third quarter, reflecting the continued strong growth in product sales. At $6 billion, total revenue was higher by 6% from the year-ago period. Sales of Opdivo came in at $1.8 billion.
Merck & Co. (MRK) this week reported mixed results for its December-quarter. Earnings increased in double-digits to $1.16 per share and topped the Street view, while revenues missed. The company’s stock dropped after the announcement, reflecting the unimpressive top-line performance and weak guidance.
Related: Bristol-Myers Q3 2019 Earnings Conference Call Transcript
After falling to a six-year low in mid-2019, Bristol shares have been on a steady uptrend and gained 46% since then. The stock moved up 29% in the past twelve months.