Bristol Myers Squibb Revenue Falls on Generic Competition for Key Drug

By
Bill McColl
Bill McColl
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Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

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Published October 26, 2023
Bristol-Myers Squibb headquarters sign in Princeton, New Jersey

John Greim / Getty Image

Key Takeaways

  • Revenue at Bristol Myers Squibb declined as generic competition captured some of the sales of its popular blood cancer drug, Revlimid.
  • Revlimid sales dropped 41% for the third quarter. The company said that loss was partially offset by its new-products portfolio and in-line products.
  • Shares of Bristol Myers Squibb dropped Thursday to levels not seen since the start of the pandemic in 2020.

Shares of Bristol Myers Squibb (BMY) fell Thursday after the company reported that sales of the drug maker’s popular Revlimid blood cancer treatment plunged due to competition from generics.

Bristol Myers Squibb posted third-quarter 2023 profit of $2 per share, beating estimates. Revenue was down 2.2% to about $11 billion, in line with forecasts.

The company blamed the revenue decline on a 41% drop in worldwide sales of Revlimid, pointing to “generic erosion” as well as an increase in the number of patients receiving the drug for free through a donation program that Bristol Myers Squibb participates in. It added that the Revlimid revenue slide was partially offset by its new-product portfolio and in-line products.

Chief Operating Officer (COO) Christopher Boerner, who is set to replace CEO Giovanni Caforio next week, was optimistic about the future, saying the drug maker continues to see “very strong long-term potential” for its new-product portfolio. He added, “The question really is a question of ‘when,’ not ‘if.’ ”

The news sent Bristol Myers Squibb shares tumbling almost 6.5% Thursday to close at their lowest level since the COVID-19 outbreak in March 2020.

BMY share performance since March 2020

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  1. Bristol Myers Squibb. "Bristol Myers Squibb Reports Third-Quarter Financial Results for 2023."

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