Bristol-Myers Squibb’s 3Q16 performance
Bristol-Myers Squibb (BMY) reported a growth of 21% to $4.9 billion in its 3Q16 results. Analysts predict high-single-digit to low-double-digit growth in revenues for 4Q16.
The above graph shows the revenues of Bristol-Myers Squibb in each quarter and analysts’ estimates for next quarter. As the company has its operations worldwide, it’s largely exposed to currency risk.
Bristol-Myers Squibb’s business is divided into the following segments:
- The oncology segment has emerged as the largest revenue contributor in 3Q16 when it contributed nearly 34.9% of total revenues. This segment reported a ~53% increase in 3Q16 as compared to 3Q15, mainly driven by increased sales of Opdivo, Yervoy, and Sprycel, partially offset by the transfer of Erbitux rights for the North America region.
- The virology segment contributed nearly 24.3% of total revenues for Bristol-Myers Squibb during 3Q16. Overall, the segment revenues fell over 9.5% to $1.2 billion during 3Q16 as compared to $1.3 billion during 3Q15. The segment reported a decrease in sales of all products including its Hepatitis C franchise, Baraclude (a Hepatitis B drug), and Reyataz and Sustiva (HIV drugs).
- The immuno-science segment, which includes Orencia, contributed nearly 11.6% of total revenues during 3Q16, driven by a growth of 18.2% in Orencia sales for 3Q16 as compared to 3Q15.
- The cardiovascular segment, represented by Eliquis, contributed ~18% of total revenues during 3Q16. Eliquis sales rose ~90% to $884 million in 3Q16 as compared to $466 million in 3Q15 due to wide use and strength of its prescription trends.
- The neuroscience segment, represented by drug Abilify, reported a ~37% drop in Abilify sales following the competition in 3Q16 as compared to 3Q15. Abilify is a trademark of Otsuka Pharmaceuticals.
- The matured products and all other products have shown a 16.7% decline in revenues at ~$521 million in 3Q16 as compared to $625 million in 3Q15 due to lower sales and increased competition.
The key products have been discussed separately in the coming articles. Investors can consider the PowerShares Dynamic Pharmaceuticals ETF (PJP), which holds 4.9% of its total assets in Bristol-Myers Squibb, while it holds 5.6% in Johnson & Johnson (JNJ), 5.4% in Merck (MRK), and 5.2% in Pfizer (PFE) in order to divest the risk.