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Performance of Bristol-Myers Squibb’s Eliquis in 2Q17

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Cardiovascular portfolio

Bristol Myers Squibb’s (BMY) cardiovascular portfolio includes the blockbuster drug Eliquis. Eliquis is an oral inhibitor targeting stroke prevention in non-valvular atrial fibrillation and the prevention and treatment of venous thromboembolism disorders. The drug is developed in alliance with Pfizer (PFE).

The above graph shows revenues for Eliquis over the last few quarters. The company expects Eliquis and Opdivo to be the company’s growth drivers over the next few years.

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Eliquis revenues

Eliquis, the blockbuster cardiovascular drug, reported revenues of $1.2 billion in 2Q17, a 51.0% rise compared to $777.0 million in 2Q16. The drug has a higher cost of sales and thus generates lower profits than other Bristol-Myers Squibb products. Eliquis sales were driven by a broad spectrum of uses, strong recommendations, and increased prescriptions from medical practitioners.

US sales for Eliquis were $703.0 million in 2Q17, a ~58.0% rise compared to $444.0 million in 2Q16. US sales contribute more than 65.0% of Eliquis’s total sales. Lower operating margins for Eliquis include the high cost of sales and increased operating costs, including higher marketing spending.

Eliquis competes with Johnson & Johnson’s (JNJ) Xarelto and Boehringer Ingelheim’s Pradaxa.

Developing other drugs

Currently, there are no other drugs in the cardiovascular franchise. However, the company is focused on developing drugs for unmet medical needs in cardiovascular diseases. Some of those diseases include arrhythmia, atherosclerosis, atrial fibrillation, heart failure, and thrombosis.

To divest the company-specific risks, investors can consider ETFs such as the SPDR S&P Pharmaceuticals ETF (XPH), which holds 4.9% of its total assets in Bristol-Myers Squibb (BMY). XPH also holds 4.5% in Johnson & Johnson (JNJ), 4.3% in Allergan (AGN), and 3.4% in Mylan (MYL).

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