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How Did Bristol-Myers Squibb’s Other Segments Perform in 3Q16?

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Neuroscience and immunoscience segments

Bristol-Myers Squibb’s (BMY) neuroscience segment sales fell over 37% in 3Q16, while the immunoscience segment sales rose ~18% in 3Q16 as compared to 3Q15. The neuroscience segment is represented by the drug Abilify, while the immunoscience segment is represented by the drug Orencia.

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Abilify  

Abilify is an antipsychotic agent used in the treatment of schizophrenia and major depressive disorders and is a part of the company’s alliance with Otsuka Pharmaceutical.

Following the loss of exclusivity in US markets, Abilify revenues have fallen over 37% in 3Q16. The company lost exclusivity for Abilify in the European markets in 2014, which impacted the sales of the drug slightly. Abilify is a high-profit product, so lower Abilify sales had a negative impact on gross margin for 3Q16.

Other drugs for schizophrenia include AstraZeneca’s (AZN) Seroquel XR, Johnson & Johnson’s (JNJ) Invega Sustenna, and Sunovion Pharmaceuticals’ (SEPR) Latuda.

Orencia

Orencia is a fusion protein used in rheumatoid arthritis and related indications. Orencia revenues rose ~18% to $572 million in 3Q16, following higher demand and higher net selling average prices.

Other drugs for the treatment of rheumatoid arthritis include Abbvie’s (ABBV) Humira, Amgen’s (AMGN) Enbrel, and Pfizer’s (PFE) Celebrex. Investors can consider the VanEck Vectors Pharmaceutical ETF (PPH), which holds 5.3% of its total assets in Bristol-Myers Squibb in order to divest the risk.

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