Revisiting Bristol-Myers Squibb’s Virology in 1Q17
BMY’s virology portfolio
Bristol-Myers Squibb’s (BMY) virology portfolio includes drugs for chronic virus diseases and infections including Hepatitis B, Hepatitis C, and HIV.
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Hepatitis C franchise
Daklinza and Sunvepra are the two drugs in BMY’s Hepatitis C franchise. Revenues from these drugs fell to $162 million in 1Q17, as compared to $427 million in 1Q16, following lower sales in both the US and international markets. In US markets, revenues from BMY’s Hepatitis C franchise fell ~84% to $42 million in 1Q17, as compared to $259 million in 1Q16.
The HIV franchise includes two drugs, Reyataz and Sustiva. In 1Q17, Sustiva revenues declined to $184 million, as compared to $273 million during 1Q16, due to the loss of exclusivity in US markets.
Reyataz revenues fell to $193 million in 1Q17, as compared to $221 million in 1Q16, due to lower sales of the drugs.
Hepatitis B franchise
Baraclude, an oral antiviral, reported a decline in revenues to $282 million 1Q17, as compared to $291 million in 1Q16, due to the generic competition of entecavir tablets from Teva Pharmaceuticals (TEVA).
To divest risk, investors can consider ETFs like the Health Care Select Sector SPDR ETF (XLV), which has ~3.1% of its total assets in Bristol-Myers Squibb. XLV also has 11.5% of its total assets in Johnson & Johnson (JNJ), 3.6% of its total assets in Gilead Sciences (GILD), and 3.7% of its total assets in AbbVie (ABBV).