Biopharmaceutical company Bristol Myers Squibb (NYSE:BMY) reported Q1 CY2025 results exceeding the market’s revenue expectations, but sales fell by 5.6% year on year to $11.2 billion. The company’s full-year revenue guidance of $46.3 billion at the midpoint came in 1.2% above analysts’ estimates. Its non-GAAP profit of $1.80 per share was 19.8% above analysts’ consensus estimates.
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Bristol-Myers Squibb (BMY) Q1 CY2025 Highlights:
- Revenue: $11.2 billion vs analyst estimates of $10.78 billion (5.6% year-on-year decline, 3.9% beat)
- Adjusted EPS: $1.80 vs analyst estimates of $1.50 (19.8% beat)
- Adjusted EBITDA: $5.19 billion vs analyst estimates of $3.83 billion (46.3% margin, 35.5% beat)
- The company lifted its revenue guidance for the full year to $46.3 billion at the midpoint from $45.5 billion, a 1.8% increase
- Management raised its full-year Adjusted EPS guidance to $6.85 at the midpoint, a 2.2% increase
- Operating Margin: 29.5%, up from -96.4% in the same quarter last year
- Free Cash Flow Margin: 15.1%, down from 21.5% in the same quarter last year
- Market Capitalization: $94.53 billion
StockStory’s Take
Bristol-Myers Squibb’s first quarter results reflected a mix of strong execution in its newer product portfolio and ongoing challenges from generic competition impacting legacy brands. CEO Christopher Boerner highlighted robust demand for key products such as Breyanzi, Reblozyl, Camzyos, and the immuno-oncology (IO) portfolio, while noting that declines in older products were largely due to generic entries. Boerner also pointed to early launch momentum for Cobenfi, a recently approved schizophrenia treatment, and emphasized efforts to drive operational efficiency and cost savings across the organization.
Looking ahead, management attributed the raised full-year guidance to continued momentum in growth products, more moderate declines in the legacy portfolio than previously anticipated, and favorable foreign exchange trends. CFO David Elkins explained that ongoing strategic productivity initiatives and a disciplined capital allocation strategy underpin the company’s ability to navigate macroeconomic uncertainty. Despite some pipeline setbacks, leadership remains focused on advancing late-stage programs and business development opportunities to support long-term growth.
Key Insights from Management’s Remarks
Bristol-Myers Squibb’s management discussed product-specific performance, pipeline progress, and the business’s adaptation to evolving policy and operational challenges. These updates focused on the company’s ability to offset headwinds in its legacy portfolio and capitalize on recent product launches.
- Growth portfolio momentum: Demand for Breyanzi, Reblozyl, Camzyos, and the IO franchise drove double-digit sales growth in the growth portfolio, helping to counteract revenue declines from older drugs exposed to generic competition.
- Early Cobenfi launch progress: Cobenfi, launched last October for schizophrenia, showed promising early prescription trends and positive feedback from patients and physicians. Management emphasized a commercial strategy focused on monotherapy, which comprises most of the market opportunity.
- Pipeline advancements: New regulatory approvals for Opdivo plus Yervoy in first-line liver cancer and for Breyanzi in follicular lymphoma expanded the company’s addressable markets. Camzyos benefited from a favorable label update in the U.S. and approval in Japan, while the Milvexian atrial fibrillation trial reached full enrollment.
- Operational efficiency initiatives: Management reported over $500 million in year-over-year operating expense reductions, attributed to ongoing productivity efforts, and reaffirmed a target of $2 billion in annual cost savings by 2027. These measures are intended to strengthen margins and support investment in future growth.
- Navigating external headwinds: The company is actively monitoring policy shifts, including tariffs and drug pricing reforms, and is leveraging its U.S.-based manufacturing and flexible supply chain to mitigate potential impacts. Ongoing engagement with regulators and policymakers remains a priority.
Drivers of Future Performance
Management expects the company’s next phase of growth to be driven by expanded uptake of growth products, strategic cost controls, and pipeline execution, while acknowledging risks in the external environment.
- Growth product expansion: Management believes sustained momentum in new therapies—particularly Cobenfi, Camzyos, and Breyanzi—will be critical for revenue growth as legacy products continue to decline.
- Pipeline milestones: Several pivotal clinical trial readouts, including for Cobenfi in Alzheimer’s disease psychosis and new oncology programs, are expected this year. The company views these as potential catalysts for future portfolio expansion and long-term growth.
- Cost management and external risks: Strategic cost reduction initiatives are expected to offset margin pressure, but management highlighted ongoing uncertainty from tariffs, drug pricing reforms, and broader macroeconomic conditions as risks to monitor.
Top Analyst Questions
- Christopher Schott (JPMorgan): Asked about the company’s ability to navigate potential tariffs and the impact of Cobenfi’s adjunctive trial results. Management stated current tariffs affecting China are already reflected in guidance and reiterated that Cobenfi’s outlook focuses on monotherapy use.
- Mohit Bansal (Wells Fargo): Questioned how cost rationalization affects R&D investment and pipeline risk. Management emphasized continued investment in late-stage clinical programs and cited a robust record of approvals, while learning from recent trial setbacks.
- Luisa Hector (Berenberg): Asked if negative adjunctive results for Cobenfi impact confidence in Alzheimer’s disease psychosis trials. Management responded that the disease biology differs, and prior data support continued confidence in Alzheimer’s studies.
- Geoffrey Meacham (Citi): Inquired about supply chain flexibility to mitigate tariffs and business development priorities. Management described a broad, flexible manufacturing network and stressed that business development remains the top capital allocation priority, regardless of external challenges.
- Evan Seigerman (BMO Capital): Sought views on potential drug pricing reforms and the commercial impact of relaxed cardiac monitoring requirements for Camzyos. Management stressed ongoing engagement with policymakers and expects the updated Camzyos label to increase capacity and patient access.
Catalysts in Upcoming Quarters
In the coming quarters, key items to watch include (1) progress on pivotal trial readouts for key pipeline assets, such as Cobenfi in Alzheimer’s disease psychosis and new oncology indications; (2) further adoption trends for recently launched products like Cobenfi and OpdivoCuvanti, especially as broader physician access improves; and (3) the company’s execution on cost savings targets to sustain margins amid legacy product declines and evolving policy risks. Additional attention will be given to business development activity and the impact of any new regulatory or pricing reforms.
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