Categories Analysis, Health Care

Earnings preview: Celgene deal in focus as Bristol-Myers prepares for Q2 results

Bristol-Myers Squibb (NYSE: BMY) will be releasing its quarterly results amid growing skepticism over the planned acquisition of rival drugmaker Celgene (CELG), which is believed to be not in the best interests of the stakeholders. Analysts expect earnings of $1.06 per share for the second quarter on revenues of $6.11 billion, up 5% and 7% year-over-year respectively. The results will be published Thursday before the opening bell.

Despite the downward earnings revisions in recent weeks and muted sentiment, the strong earnings forecast points to yet another beat this time. In the to-be-reported quarter, revenue growth will likely be driven by the company’s cancer drug Opdivo, continuing the recent trend.

Bristol-Myers Squibb (BMY) tops Q1 estimates, gets shareholder approval for Celgene deal

The other contributors are anticoagulant Eliquis and oncology drug Sprycel, which continue to expand their market share. Sprycel obtained FDA approval for the treatment of Philadelphia chromosome-positive acute lymphoblastic leukemia in pediatric patients earlier this year, which was followed by a green signal from the European Union for similar indication.

It is estimated that the other key products, such as Orencia and Yervoy, also put up a good show in the second quarter in terms of sales.

The growth drivers include anticoagulant Eliquis and oncology drug, Sprycel which continue to expand their market share

The merger deal with Celgene run into trouble recently after the Federal Trade Commission expressed antitrust concerns. Also, the company’s decision to let go off the hugely successful psoriasis drug Otezla, to clear the regulatory hurdles, has raised concerns among investors.

Also see: Bristol-Myers to sell psoriasis drug to save Celgene merger

Concerns surrounding the controversial deal continue to put pressure on the stock, which is unlikely to improve much in the post-earnings session. The fact that Celgene’s blockbuster myeloma drug Revlimid will face generic competition in the next couple of years casts doubts on the prospective synergies from the combination. Meanwhile, Opdivo is facing stiff competition from its generic version developed by Merck & Company (MRCK).

Related: Bristol-Myers Q4 2018 Earnings Conference Call Transcript

Bristol-Myers’ first-quarter earnings and revenues grew in double digits, helped by a strong increase in US sales. Adjusted earnings climbed 17% annually to $1.10 per share as revenues jumped 14% to $5.9 billion.

After climbing to a record high in March, the company’s stock lost momentum in the recent weeks. It dropped about 24% in the past twelve months and 18% since the beginning of 2019.

We’re on Apple News! Follow us to receive the latest stock market, earnings and financial news at your fingertips

Most Popular

CCL Earnings: Carnival Corp. Q4 2024 revenue rises 10%

Carnival Corporation & plc. (NYSE: CCL) Friday reported strong revenue growth for the fourth quarter of 2024. The cruise line operator reported a profit for Q4, compared to a loss

Key metrics from Nike’s (NKE) Q2 2025 earnings results

NIKE, Inc. (NYSE: NKE) reported total revenues of $12.4 billion for the second quarter of 2025, down 8% on a reported basis and down 9% on a currency-neutral basis. Net

FDX Earnings: FedEx Q2 2025 adjusted profit increases; revenue dips

Cargo giant FedEx Corporation (NYSE: FDX), which completed an organizational restructuring recently, announced financial results for the second quarter of 2025. Second-quarter earnings, excluding one-off items, were $4.05 per share,

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top