Bristol Myers Squibb announced on Thursday that it will implement $2 billion in cost reductions by the end of 2027, expanding its current cost-saving initiatives to support long-term growth.
The company stated that these savings will be achieved through organizational restructuring and operational streamlining, allowing for reinvestment in new scientific advancements and drug brands expected to drive future growth.
Bristol Myers remains committed to its previously announced goal of cutting $1.5 billion in costs by the end of 2025, with those funds directed toward drug development. Initially disclosed in April, these reductions were reinforced in Thursday’s update.
The pharmaceutical company is working to counterbalance revenue losses anticipated from its top-selling drugs that are set to lose market exclusivity, including the widely used blood thinner Eliquis and the cancer immunotherapy Opdivo.
Additionally, on Thursday, Bristol Myers Squibb provided full-year 2025 guidance that fell short of Wall Street’s expectations due to increasing competition from lower-cost generics affecting some of its older medications. This includes four cancer treatments: Revlimid, Pomalyst, Sprycel, and Abraxane.
The company projects revenue of approximately $45.5 billion for 2025, below the $47.36 billion anticipated by analysts surveyed by LSEG. Revenue guidance also factors in an estimated $500 million negative impact from foreign exchange fluctuations.
Bristol Myers forecasts adjusted earnings per share in the range of $6.55 to $6.85, compared to the $6.92 per share expected by analysts.
Despite the outlook, the company reported fourth-quarter earnings that surpassed expectations, driven by strong performance from Eliquis and its growth portfolio of drugs.
Bristol Myer Squibb (Photo: Robert Bruschini)Here are the fourth-quarter results compared with analyst expectations from an LSEG survey:
Bristol Myers posted net income of $72 million, or 4 cents per share, for the quarter, compared to $1.8 billion, or 87 cents per share, in the same period a year earlier. Excluding specific items, adjusted earnings per share stood at $1.67.
The company’s revenue grew 8% year-over-year to $12.34 billion. Eliquis generated $3.2 billion in sales for the quarter, marking an 11% increase from the previous year. This exceeded analyst estimates of $3.03 billion.
Eliquis, which Bristol Myers co-markets with Pfizer, is expected to lose market exclusivity by 2028. Additionally, its sales may decline in 2026 when new, negotiated Medicare prices take effect following discussions with the federal government, a key aspect of the Inflation Reduction Act.
The second round of Medicare drug price negotiations will include 15 additional medications, with new prices effective in 2028. Among them is Pomalyst, used for multiple myeloma and a type of cancer affecting individuals with HIV.
Pomalyst recorded $823 million in fourth-quarter sales, down 8% year-over-year. Sprycel reported $198 million in revenue, reflecting a steep 62% decline. Abraxane brought in $174 million, down 30% from the same period in 2023.
Revlimid, another key drug, earned $1.34 billion in fourth-quarter sales, an 8% drop from the previous year. However, this exceeded analyst estimates of $1.10 billion.
The company’s Growth Portfolio generated $6.36 billion in fourth-quarter revenue, marking a 21% increase compared to the prior year.
Opdivo contributed $2.48 billion in revenue for the quarter, a 4% rise from the year before, though slightly below analysts’ projections of $2.51 billion.
