Orencia Could Witness Robust Growth in 2017



Orencia revenue trends

In 2Q17, Bristol-Myers Squibb’s Orencia generated revenues of around $650 million, which reflected ~10% growth on a year-over-year (or YoY) basis and ~21% growth quarter-over-quarter.

In 2Q17, in the US market, Orencia generated revenues of around $449 million, which represents ~12% growth on a YoY basis. In 2Q17, outside the US market, Orencia generated revenues of ~$201 million, which reflected 5% growth on a YoY basis. In 2Q17, Orencia contributed around 13% of Bristol-Myers Squibb’s net revenues.

The chart above represents the revenue curve of Bristol-Myers Squibb’s Orencia from 2Q16 to 2Q17. To learn more about Orencia, please read Why Orencia Could Be Just What BMY Needs in 2017.

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Recent regulatory approvals

In July 2017, the European Commission approved Bristol-Myers Squibb’s Orencia alone or in addition to methotrexate. This treatment is intended for the management of active psoriatic arthritis (or PsA) in adult individuals who did not show adequate response to a prior disease-modifying antirheumatic drug (or DMARD) and who do not require additional systemic therapy for psoriatic skin lesions. The regulatory approval would allow Bristol-Myers Squibb commercialize the drug in 28 countries of the European Union.

In July 2017, the FDA approved Orencia for the treatment of adult individuals with active psoriatic arthritis. The FDA has approved both intravenous and subcutaneous injection formulations of Orencia.

These regulatory approvals for label expansion both in the US and the European market could boost the sales growth of the drug in the second half of 2017. The growth in sales of Bristol-Myers Squibb’s Orencia could boost the price of the iShares Russell 1000 Value ETF (IWD). Bristol-Myers Squibb comprises ~0.41% of IWD’s total portfolio holdings.

Bristol-Myers Squibb’s Orencia competes in the rheumatoid arthritis and psoriatic arthritis drug market with Johnson & Johnson’s (JNJ) Simponi, Janssen Biotech’s Remicade, Amgen’s (AMGN) Enbrel, and AbbVie’s (ABBV) Humira.


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