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Bristol-Myers Squibb’s 3Q17 Earnings: Virology Products

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Virology portfolio

Bristol-Myers Squibb’s (BMY) Virology portfolio includes various drugs for the treatment of hepatitis B infections, hepatitis C infections, and HIV infections, as well as other virology drugs. All these drugs are classified under the established brands.

The chart below shows revenues for the Virology products and franchise since 4Q15.

Hepatitis B franchise

The Hepatitis B franchise includes its sole drug, Baraclude. Baraclude’s sales fell ~14% to $264.0 million during 3Q17, compared to $306.0 million during 3Q16. Its US sales totaled ~$14.0 million during 3Q17, an 18.0% decline compared to 3Q16.

The drug’s sales are declining continuously due to increased competition from entecavir tablets from Teva Pharmaceuticals’ (TEVA) portfolio.

Hepatitis C franchise

Bristol-Myers Squibb’s Daklinza and Sunvepra are the two drugs from its Hepatitis C franchise. These drugs reported an ~80% decline in revenues to $73.0 million during 3Q17, compared to $379.0 million during 3Q16. Its US sales fell 88.0% to $24.0 million during 3Q17.

BMY’s Hepatitis C products include Harvoni and Sovaldi from Gilead’s (GILD) portfolio and Viekira Pak from AbbVie’s (ABBV) portfolio.

HIV franchise

The HIV franchise’s Reyataz and Sustiva reported lower sales in 3Q17. Reyataz reported a 27.0% decline in revenues to $174.0 million during 3Q17. Sustiva reported a 33.0% decline in revenues to $183.0 million during 3Q17.

Both drugs are losing market share due to the loss of exclusivity and competition from other products. All the above products are classified under Bristol-Myers Squibb’s Established brands.

The Fidelity MSCI Healthcare ETF (FHLC) holds 2.8% of its total assets in Bristol-Myers Squibb (BMY). FHLC also holds 4.8% in Merck & Co. (MRK), 5.6% in Pfizer (PFE), and 9.7% in Johnson & Johnson (JNJ).

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