New York City-based Bristol-Myers Squibb posted a third-quarter net income of $721 million (43 cents per share), which was 4.2% up on the $692 million (42 cents per share) in Q3 2013. The pharmaceutical giants’ figures topped most analysts’ estimates.
Revenue in the United States fell 3% to $2 billion, while international revenues declined by 4% in the third quarter.
Gross margin as a percentage of revenue was 74.3% compared to 71.1% in the same quarter last year.
Reported net earnings attributable to BMS came in at $721 million (43 cents per share) in the third quarter, versus $692 million (42 cents per share) in Q3 2013.
Focusing on cancer therapies
Bristol-Myers Squibb says its future is in cancer therapies (Photo: Bristol-Myers Squibb)
Over the last few years, Bristol-Myers Squibb (BMS) has been shifting its focus towards cancer medications that utilize the patient’s own immune system, such as melanoma drug Yervoy, which received FDA (Food and Drug Administration) approval three years ago.
Earlier this month, BMS announced it was abandoning its quest to gain FDA approval for its new hepatitis C combination medication.
Yervoy sales in Q3 2014 jumped to $350 million, an increase of 47% compared to the same quarter last year.
Rhematoid arthritis medication Orencia posted an 18% increased in sales to $444 million, Sprycel (leukemia medication) rose 22% to $385 million, while cardiovascular drug Eliquis registered sales of $216 million.
Opdivo received breakthrough designation from the FDA in September, meaning the melanoma medication will receive a faster review.
Non-small cell lung cancer medication Nivolumab has been validated by the European Medicine’s Agency for review for lung cancer and melanoma treatment.
Bristol-Myers Squibb’s CEO Lamberto Andreotti said:
“Our financial results in the third quarter reflect our continued focus on balancing long-term growth with short-term performance, as we achieved significant progress in our pipeline and saw strong in-market performance for key products including Eliquis, Yervoy, Sprycel and Orencia.”
“We continue to build a solid foundation for our future as a Diversified Specialty BioPharma by advancing our own R&D efforts and investing in strategic business development to build a sustainable pipeline.”
2014 Financial Guidance
BMS says it is adjusting its GAAP EPS guidance range from $1.50 – $1.60 to $1.15 – $1.25. It reiterated its non-GAAP EPS guidance range of $1.70 – $1.80. GAAP, or Generally Accepted Accounting Principles, are a set of official procedures, standards and rules that publicly-traded firms must comply with when preparing their financial statements.