Bristol Myers Squibb (BMY) earnings Q2 2024

Bristol Myers Squibb on Friday reported second-quarter earnings and revenue that topped expectations and raised its full-year guidance as the drugmaker moves to slash costs.

The pharmaceutical giant raised its full-year revenue forecast to an increase in the “upper end” of the low single-digit range. That compares with its previous guidance in April of a low single-digit increase in sales. 

The company also raised its 2024 adjusted earnings guidance to 60 cents to 90 cents per share, up from a previous forecast of 40 cents to 70 cents per share. 

Shares of Bristol Myers rose nearly 8% on Friday.

The results come as Bristol Myers moves to cut $1.5 billion in costs by 2025 and reinvest that money into key drug brands and research and development programs. In April, the company said that will involve laying off more than 2,000 employees, culling some drug programs and consolidating its sites, among other efforts. 

Here is what Bristol Myers reported for the second quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG: 

• Earnings per share: $2.07 adjusted vs. loss of $1.63 expected
• Revenue: $12.2 billion vs. $11.55 billion expected 

The pharmaceutical giant’s revenue rose 9% from the same period a year ago to $12.2 billion. 

Bristol Myers posted net income of $1.68 billion, or 83 cents per share, for the second quarter. That compares with net income of $2.07 billion, or 99 cents per share, for the year-earlier period. 

Excluding certain items, its adjusted earnings per share was $2.07 for the quarter. 

The second-quarter sales increase came primarily from the company’s blockbuster blood thinner Eliquis and a portfolio of drugs it expects to help it deliver long-term growth. Among those treatments is the cancer drug Opdivo, which raked in higher-than-expected sales for the quarter. 

Revenue from Bristol Myers’ blood cancer drug Revlimid also topped analysts’ estimates for the period despite facing competition from cheaper generics. 

The company faces pressure to launch new drugs and offset the loss of revenue from Revlimid and other top-selling treatments that will eventually lose exclusivity on the market, including Eliquis and Opdivo. 

Sales of Eliquis could also take a hit in 2026, when a new price for the drug goes into effect for certain Medicare patients following negotiations with the federal government. Those price talks, a key provision of President Joe Biden‘s Inflation Reduction Act, will end at the beginning of August.

The blood thinner, which Bristol Myers shares with Pfizer, is expected to…