Bristol Myers lowers the company’s 2023 revenue forecast for Revlimid by $1 billion

Revlimid Revenue to Fall by $1B, Bristol Myers Says

Bristol Myers Squibb (BMS) had a promising long-term outlook after securing FDA approvals for three drugs with peak sales potential of $4 billion each. However, the near future looks challenging, as the company’s three top-selling drugs—Eliquis, Revlimid, and Opdivo—all significantly missed analysts’ expectations. BMS reduced its 2023 sales projection for blood cancer drug Revlimid by a staggering $1 billion and also lowered its overall revenue projection.

The company now expects a decline in sales by a low single-digit figure for 2023, compared to the previous forecast of a 2% revenue increase. Departing CEO Giovanni Caforio did not shy away from addressing the disappointing results and attributed the decline to generic erosion for Revlimid and “softness” in revenues, possibly due to increased utilization of free drugs under a patient assistance program.

The quarter’s revenue of $11.23 billion fell short of analysts’ average expectation of $11.82 billion and represented a 6% decline from the second quarter of 2022, affecting both the US and international markets.

Bristol-Myers Squibb (BMS) has revised its 2023 sales projection for Revlimid, lowering it from $6.5 billion to $5.5 billion. Additionally, BMS has reduced its forecast for Pomalyst by $300 million. Sales of Pomalyst, a drug used to treat multiple myeloma, also declined by 6% in the second quarter compared to the previous year, amounting to $847 million. The decrease in sales for both drugs was influenced by similar factors that affected Revlimid’s performance.

BMS is pinning its hopes on a portfolio of nine new products, which generated $862 million in sales during the quarter. Notable contributors to the increase were Reblozyl and Opdualag, both of which showed promising growth. However, CAR-T drug Breyanzi and BCAM-targeted Abecma had mixed results, with Breyanzi seeing positive gains, while Abecma experienced a decline.

Despite the short-term challenges, BMS remains confident in the potential of its new drugs and plans to execute a $4 billion accelerated share repurchase program in the third quarter. The company also maintains its five-year targets, anticipating growth from both older brands and the new product portfolio.

Analysts are cautious about BMS’s ability to meet its guidance given the recent setbacks, but the company is determined to prove its growth trajectory and retain its confidence in the future of its new drugs.

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