Bristol-Myers Squibb Company’s (BMY – Free Report) third-quarter 2017 earnings of 75 cents per share fell short of the Zacks Consensus Estimate as well as the year-ago quarter earnings of 77 cents.
However, total revenue of $5.25 billion came ahead of the Zacks Consensus Estimate of $5.2 billion as well as $4.9 billion recorded in the year-ago period. Strong sales of Opdivo and Eliquis contributed to the top line in the reported quarter.
Shares of the company were down 1.9% in pre-market trading, presumably due to the lower-than-expected earnings. Bristol-Myers’ shares have increased 9.5% so far this year, which compares unfavorably with the industry’s increase of 17.8%.
Quarterly Details
Revenues were up 6% year over year when adjusted for foreign exchange impact. Revenues in the United States increased 3% to $2.9 billion and increased 12% outside the United States. Ex-U.S. revenues were up 11% when adjusted for foreign exchange impact.
Leukemia drug Sprycel raked in sales of $509 million, up 8% year over year. Melanoma drug Yervoy contributed $323 million to the top line during the reported quarter, up 13%.
Opdivo, which is approved for multiple cancer indications, generated revenues of $1.27 billion, up 38% from the year-ago period. The drug received approval for its label expansion in three more indications, which includes hepatocellular carcinoma, metastatic colorectal cancer and recurrent gastric cancer.
However, the performance of key drugs in the Virology unit continues to disappoint. Sales of Baraclude declined 14% to $264 million. The Reyataz and Sustiva franchises deteriorated 27% and 33% year over year to $174 million and $183 million, respectively..
Nevertheless, sales of Eliquis were $1.23 billion during the reported quarter, up 29% year over year. Multiple myeloma drug, Empliciti recorded sales of $60 million, up 46% year over year.
Research and development (R&D) expenses in the quarter increased 36% to $1.5 billion mainly due to a charge of $310 million related to acquisition of IFM Therapeutics, while marketing, selling and administrative expenses remained flat at $1.1 billion.
