By Deena Beasley and Bhanvi Satija
(Reuters) -Bristol Myers Squibb reported a first-quarter loss on Thursday as charges related to its acquisitions of Karuna Therapeutics (NASDAQ:KRTX), RayzeBio and Mirati Therapeutics (NASDAQ:MRTX) offset a small increase in revenue, sending shares down nearly 8%.
The company also announced plans to save about $1.5 billion in costs by the end of 2025 by cutting 2,200 jobs this year along with other measures such as reducing third-party spending.
For the full year 2024, Bristol slashed its adjusted profit forecast to between 40 cents and 70 cents per share due to deal expenses. It had previously forecast earnings of $7.10 to $7.40 per share.
Analysts had adjusted their full-year earnings estimates in anticipation of the cut and now expect the company to earn 66 cents per share, still above the new midpoint of the range.
Bristol said it continues to expect 2024 revenue growth in the low single digits.
Revenue growth in the quarter was primarily driven by higher sales of blood thinner Eliquis, which Bristol shares with Pfizer (NYSE:PFE), anemia drug Reblozyl and melanoma treatment Opdualag, the company said. That was partially offset by lower sales of older cancer drugs Opdivo and Revlimid.
At least three analysts said the drugmaker's quarterly revenue beat was driven by Revlimid instead of newer drugs.
Sales of Revlimid fell 5% to $1.67 billion, but beat estimates of $1.30 billion. Sales from heart disease drug Camzyos and psoriasis drug Sotyktu were below expectations.
"Given this quarter's performance, we expect investors to focus even more intensely on Bristol's post-Revlimid prospects," said Guggenheim analyst Seamus Fernandez.
Fernandez added disappointing sales for key future growth drivers and higher-than-expected sales and administrative spend will likely keep investors sidelined.
The drugmaker's marketing, selling and administrative expenses rose 34.3% to $2.37 billion in the quarter.
Quarterly sales of Opdivo fell 6% to $2.08 billion, missing estimates of $2.32 billion.
Global demand for Opdivo remained strong, but first-quarter sales were affected by changes in U.S. buying patterns, Bristol Myers (NYSE:BMY) Chief Commercialization Officer Adam Lenkowsky said in an interview. He said Bristol is "confident we will see accelerating growth this year".
The company is expecting the cancer immunotherapy to lose patent protection later this decade and has been pursuing outside assets to restock its drug development pipeline.
Bristol Myers has already faced pressure from generic competition for Revlimid, once its top-selling drug.
Current top seller Eliquis is expected to have revenue somewhat curtailed when the U.S. Medicare health plan for people over age 65 institutes negotiated drug prices starting in 2026.
The New Jersey-based drugmaker posted a loss of $4.40 per share, including charges for acquired research and development. Analysts on average had expected a loss of $4.41 per share, according to LSEG data.
Bristol's quarterly revenue rose 5% to $11.87 billion, exceeding estimates of $11.48 billion.