BMS Will Cut $1.5bn And 2,200 Jobs To Reinvest In Needed Growth

Q1 Revenue Rises But Many New Drugs Disappoint

 
• By Mandy Jackson
  
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Revlimid and Eliquis beat expectations in the first quarter, but the products have dwindling exclusivity, making new drugs the main focus for Bristol. So the company will reinvest cost savings in R&D.

Budget cuts. Inflation threatens savings. Loss of savings and investments.
Cost reductions will result in 2,200 job cuts • Source: Shutterstock

Bristol Myers Squibb Company reported $11.9bn in first quarter 2024 revenue, up 5% from the year-ago quarter and above consensus expectations of $11.45bn. That should have buoyed the big pharma’s valuation when its reported earnings on 25 April, but the Q1 gain was a “low-quality beat,” as one analyst put it, because the revenue rise largely came from older products with dwindling market exclusivity rather than from newer drugs expected to grow total revenue later this decade.

Key Takeaways

  • BMS reported a 5% increase in Q1 revenue to $11.9bn, beating analyst consensus, but the rise was driven more unexpected gains for legacy products with less-than-expected growth for new drugs.

BMS closed down 8.5% at $44.70 per share based on the Q1 financial report, despite the company’s announcement that it...

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