Bristol Myers Squibb has announced plans to slash $2 billion in costs by 2027 as part of its ongoing efforts to reduce expenses and invest in growth. The move is aimed at driving organizational changes, streamlining operations, and allowing the company to focus on new science and drug brands.
The pharmaceutical giant had previously committed to cutting $1.5 billion in costs by 2025, with the additional $500 million reduction expected to be achieved through organizational adjustments. This investment will support the development of new drugs and help the company navigate the challenges posed by declining sales from top-selling treatments like Eliquis and Opdivo.
Eliquis, a blood thinner, is set to lose market exclusivity in 2028, while a new negotiated price for the drug will take effect in 2026. This could impact sales, particularly among Medicare patients. Meanwhile, competition from generics has led Bristol Myers to provide guidance on revenue and adjusted earnings for full-year 2025.
The company expects revenue of $45.5 billion for 2025, below analyst expectations of $47.36 billion. Adjusted earnings per share are forecasted between $6.55 and $6.85. Despite the reduced outlook, Bristol Myers reported strong fourth-quarter results, driven by growth in its Eliquis and Growth Portfolio segments.
Notably, Revlimid exceeded analyst estimates with $1.34 billion in sales for the quarter, while Opdivo brought in $2.48 billion in revenue. However, Sprycel and Abraxane saw significant declines in sales due to competition from generics. The company’s growth portfolio generated $6.36 billion in revenue during the fourth quarter.
Source: https://www.cnbc.com/2025/02/06/bristol-myers-squibb-bmy-earnings-q4-2024.html