Bristol-Myers Squibb’s revenues
Bristol-Myers Squibb (BMY) reported 12% growth in its top line to ~$4.93 billion during 1Q17 due to 13% operational growth in its revenues, which was offset by a 1% negative impact of foreign currency.
The above graph shows Bristol-Myers Squibb’s revenues in the last few years. Due to worldwide operations, the company is exposed to currency risk. Any changes in currency rates impact overall growth. For 1Q17, the foreign currency had a negative impact of 1% on overall revenues.
Bristol-Myers Squibb operates in a single segment, but it classified its drugs as “prioritized brands” and “established brands.”
- Prioritized brands include Opdivo, Eliquis, Orencia, Yervoy, Sprycel, and new drug Empliciti. All of these drugs reported growth in 1Q17—compared to 1Q16.
- Established brands include the Hepatitis C franchise, Baraclude—a Hepatitis B drug, Reyataz and Sustiva—HIV drugs, and other drugs. All of the drugs reported lower revenues during 1Q17—compared to 1Q16.
- The revenues also include alliance revenues from collaborations with other companies.
To divest company-specific risks, investors can consider ETFs like the PowerShares Dynamic Large Growth ETF (PWB), which holds 3.1% of its total assets in Bristol-Myers Squibb. PWB also holds 3.2% of its total assets in Celgene (CELG), 3.1% in Eli Lilly and Co. (LLY), and 3.4% in UnitedHealth Group (UNH).