BMS Will Cut $1.5bn And 2,200 Jobs To Reinvest In Needed Growth

Q1 Revenue Rises But Many New Drugs Disappoint

 
• By Mandy Jackson
  
Generate a summary of this article
Listen to this article
Beta

Revlimid and Eliquis beat expectations in the first quarter, but the products have dwindling exclusivity, making new drugs the main focus for Bristol. So the company will reinvest cost savings in R&D.

Budget cuts. Inflation threatens savings. Loss of savings and investments.
Cost reductions will result in 2,200 job cuts • Source: Shutterstock

Bristol Myers Squibb Company reported $11.9bn in first quarter 2024 revenue, up 5% from the year-ago quarter and above consensus expectations of $11.45bn. That should have buoyed the big pharma’s valuation when its reported earnings on 25 April, but the Q1 gain was a “low-quality beat,” as one analyst put it, because the revenue rise largely came from older products with dwindling market exclusivity rather than from newer drugs expected to grow total revenue later this decade.

Key Takeaways

  • BMS reported a 5% increase in Q1 revenue to $11.9bn, beating analyst consensus, but the rise was driven more unexpected gains for legacy products with less-than-expected growth for new drugs.

BMS closed down 8.5% at $44.70 per share based on the Q1 financial report, despite the company’s announcement that it...

Scrip Podcast

Keep up with the top pharma business news of the week. On the go.

Scrip brings you a weekly bulletin of top picks.

SpotifyApple PodcastsWebsite

More from Business

Test Roche Head Of Pharma Strategy Karsten Jung On Rebuilding The Portfolio

 
• By Jessica Merrill

The Swiss pharma company is rebalancing the portfolio, emphasizing best-in-class drugs and moving into new areas like cardiovascular and metabolic disease.

Quick Listen: Scrip’s Five Must-Know Things

 
• By Reed Miller

In this week's episode: Trump’s UK drug pricing win; Novo explains semaglutide Alzheimer's rationale; J&J and Novartis on this year’s biggest M&A deals; a look at the mixed performance of CAR-Ts; and Akeso’s goals beyond ivonescimab.

Article Without An Author Listed

Here is a short description.

Spotlight On RDCs, AOCs As Leading Novel Bioconjugates[Updated]

Pipelines in bioconjugates continue to develop, from ADCs to XDCs, with radionuclide drug conjugates (RDCs) and antibody-oligonucleotide conjugates (AOCs) leading the expansion.

More from Scrip

EHA: Lilly’s Jaypirca Posts First Phase III Triplet Win In CLL While BTK Degraders Advance

Lilly's first Phase III triplet win opens the door to a label expansion in BTK-pretreated CLL, with analysts suggesting Jaypica could attain blockbuster status. However, the window to capitalize may be brief as next-generation BTK degraders close in with head-to-head trials.

EHA: Lilly’s Jaypirca Posts First Phase III Triplet Win In CLL While BTK Degraders Advance - Clone

Lilly's first Phase III triplet win opens the door to a label expansion in BTK-pretreated CLL, with analysts suggesting Jaypica could attain blockbuster status. However, the window to capitalize may be brief as next-generation BTK degraders close in with head-to-head trials.