By Mackenzie Tatananni

Bristol Myers Squibb reported better-than-expected earnings for the first quarter and boosted its outlook while noting the impact of stiff competition in the pharmaceutical market.

Adjusted earnings of $1.80 a share beat the $1.49 analysts were expecting, according to FactSet.

Revenue of $11.2 billion fell 6% from the prior year, or 4% when adjusted for foreign exchange effects, but still came in above the $10.7 billion Wall Street had anticipated. U.S. revenue of $7.9 billion fell 7% from the prior year.

The company boosted its 2025 revenue guidance to a range of $45.8 billion to $46.8 billion, up from an earlier forecast of $45.5 billion. Management also raised its outlook for adjusted earnings by $0.15 per share to a new range of $6.70 to $7 a share.

The new outlook reflects the strong performance of the company's Growth Portfolio as well as better-than-expected Legacy Portfolio sales in the first quarter of 2025, Bristol-Myers said.

Revenue in the company's Legacy Portfolio declined 20% on a reported basis to $5.6 billion, driven by competition from generics as well as the Medicare Part D redesign.

The year-over-year decline was partially offset by strength in the company's so-called Growth Portfolios, which include drugs like anti-cancer treatment Opdivo, anemia treatment Reblozyl, and Breyanzi, which is used in patients with non-Hodgkin lymphoma. The segment posted revenue of $5.6 billion, up 16% or 18% adjusted for currency.

Bristol-Myers also cited the "strong early U.S. launch" of Cobenfy for patients with schizophrenia. The drug arrived on the market in late October 2024 after receiving Food and Drug Administration approval a month earlier.

While the guidance revisions include the impact of current tariffs on U.S. products shipped to China, it doesn't account for any potential levies targeting the pharmaceutical sector.

"We are advancing our multiyear plan to become a more agile and efficient company, while strengthening the foundation for top-tier, long-term growth," CEO Christopher Boerner said in a statement. "Our strategy is clear, and our actions are accelerating the delivery of transformational medicines to patients."

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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April 24, 2025 07:13 ET (11:13 GMT)

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