Bristol Myers Squibb Surprises with Strong Sales Yet Faces Investor Skepticism Over Future Growth
Bristol Myers Squibb reported unexpectedly strong second-quarter results, driven by legacy products like Eliquis, despite concerns over future growth due to looming generic competition. Revenue increased to $12.3 billion, surpassing forecasts, while earnings fell. Investors are cautious about newer products' potential to offset revenue declines from older drugs.
Bristol Myers Squibb delivered stronger-than-expected financial results for the second quarter, primarily due to robust sales of its established medications such as Eliquis, despite forecasted declines due to patent expirations. The pharmaceutical giant's revenue rose to $12.3 billion, higher than the projected $11.4 billion.
However, despite the beat, investor skepticism persists regarding the company's ability to sustain growth as products like Revlimid face increasing generic competition. Sales for Eliquis and Opdivo outperformed expectations with significant year-over-year growth, though Revlimid experienced a 38% decline.
Investors remain focused on Bristol's newer treatments, like Breyanzi and Cobenfy, to determine if they will drive future growth as older drugs decline. The company has also raised its full-year revenue forecast and announced a partnership with BioNTech to develop advanced cancer therapies.
(With inputs from agencies.)
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