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Bristol Myers Squibb is merging its scientific and clinical teams into a new research and development structure. By bringing the people who discover new drugs and the people who test them in human trials into one group, the company aims to move projects through its pipeline faster.
This move comes as the company works to replace revenue from older drugs that are losing patent protection. Success for a drugmaker this size depends on getting new medicines to market quickly, and this reorganization is a bet that a more unified team can cut down on delays and internal friction.
Source: Reuters
Bristol-Myers Squibb shared new data from a late-stage study of Camzyos, a drug used to treat a condition where the heart muscle thickens and makes it harder to pump blood. The results showed that children and teenagers taking the medicine saw sustained improvements in their heart function and physical symptoms over more than a year of treatment.
This is important because Camzyos is a key part of the company's plan to replace revenue from older drugs that will soon face cheaper generic competition. Showing that the drug works safely in younger patients could eventually expand its use to a new group of people, helping to grow sales for one of the company's most important new products.
Source: Business Wire
After Bristol-Myers Squibb reported its October results, we raised our quality score to 3.4. We increased our expectations for how fast sales can grow and how long that growth can last. We have started tracking the $1.6 billion the company spends on research rights and licensing, which reduces the profit kept from each dollar of sales. We also added the US performance of the blood thinner Eliquis to our growth drivers after its sales grew 25% over the past three months.
Bristol-Myers brought in $13.07 billion in revenue this quarter, beating the $12.72 billion analysts expected. Profits also came in higher than forecast at $1.35 per share. The company is currently trying to replace sales from its older blockbuster drugs that are losing patent protection, which allows cheaper generic versions to enter the market.
This quarter showed progress in that transition, as the newer "Growth Portfolio" of medicines grew 12 percent to reach $7.7 billion. Because of this momentum, management raised its full-year revenue goal to about $50 billion. While the company still faces a steep climb as its biggest sellers lose protection in the coming years, these results suggest the newer drugs are scaling fast enough to keep the business stable for now.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
The company shared data from a small early-stage study testing a cell therapy for patients with active and progressive multiple sclerosis. This treatment involves modifying a patient's own immune cells to help them fight the disease.
While the study is in its first phase, it is an important step in the company's effort to move cell therapy beyond cancer and into autoimmune diseases. Success here would help expand the reach of its newer growth portfolio as older drugs lose their patent protections.
Source: Business Wire
Management has beaten its own profit targets for eight straight quarters. These are not just small wins, as the company is consistently outrunning forecasts even while rotating its entire product lineup.
| Expectation | |
|---|---|
| EPS | $1.53 |
| Revenue | $12.66B |
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