Bristol-Myers
beats Wall St estimates, helped by Cancer drug Opdivo
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[April 27, 2017] By
Michael Erman
NEW YORK (Reuters) - Bristol-Myers Squibb
Co on Thursday posted better-than-expected first-quarter earnings,
helped by growth from cancer drugs Opdivo and Yervoy and blood thinner
Eliquis.
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The U.S. drugmaker, which has faced increasing competition for
blockbuster Opdivo as well as pressure from activist investors, also
raised its expectations for its full-year earnings, reversing a cut
to its outlook it made in the previous quarter.
Opdivo sales rose 60 percent in the quarter, while Eliquis and
Yervoy sales rose 50 percent and 25 percent, respectively. Opdivo
and Yervoy are immuno-oncology drugs, which target the body's immune
system to fight cancer.
Bristol-Myers reported profit of $1.57 billion, or 94 cents a share,
in the quarter, up from $1.20 billion, or 71 cents a share, a year
earlier.
Excluding one-time items, Bristol-Myers said it earned 84 cents a
share. Wall Street analysts, on average, had expected the company to
earn 74 cents a share.
Revenue rose 12 percent to $4.93 billion, which was also higher than
the average analyst estimate of $4.74 billion.
The company had warned last quarter that the potential for
earlier-than-expected lung cancer competition from Merck & Co Inc
could sap Opdivo's earnings potential this year.
Merck had filed for speedy U.S. approval of its immuno-oncology drug
Keytruda as an initial lung cancer treatment in combination with
chemotherapy. That coincided with Bristol-Myers' decision not to
seek accelerated approval for a combination of Opdivo and Yervoy in
first-line lung cancer.
But Opdivo outperformed scaled-back sales expectations for the
quarter, generating revenue of $1.13 billion, up from $704 million
last year.
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The company increased its forecast for 2017 earnings to a range of
$2.85 a share to $3 a share, up from its previous forecast range of
$2.70 a share to $2.90 a share.
In February, the company added three independent directors to its
board, a move it said was supported by activist investor Jana
Partners, which had built a position in the company. Billionaire
investor Carl Icahn has also taken a stake in Bristol-Myers.
Bristol-Myers shares closed at $53.77 on the New York Stock Exchange
on Wednesday. They are down around 8 percent in 2017.
(Reporting by Michael Erman; Editing by Bill Rigby)
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