Bristol Myers Upbeat on 2026 Forecast Amid Eliquis Strategy

Bristol Myers Projects Strong 2026 Growth on Eliquis Strategy

Bristol Myers Squibb has issued a 2026 financial forecast that surpasses Wall Street expectations, causing its shares to rise. The company anticipates total revenue between $46.0 billion and $47.5 billion, ahead of the $44.2 billion consensus estimate. Adjusted profit is projected at $6.05 to $6.35 per share, also above the analyst forecast of $6.02.

Strategic Pricing and Market Outlook

The optimistic forecast is driven by a strategic price reduction for its blockbuster blood thinner, Eliquis. Despite the drug being subject to Medicare price negotiations, the company expects the lower price to boost sales volume and help avoid government penalties. Bristol Myers, along with partner Pfizer, now projects Eliquis revenue will grow 10% to 15% this year, a reversal from previously expected declines.

Financial Performance and Cost Management

The company also reported strong fourth-quarter results, beating estimates with an adjusted profit of $1.26 per share. This performance was largely fueled by the cancer immunotherapy drug Opdivo, whose sales increased 9% to $2.69 billion. Furthermore, a company-wide cost-cutting initiative has successfully realized $1 billion in savings, halfway to its $2 billion goal.

Summary and Future Outlook

Bristol Myers' proactive pricing strategy for Eliquis, combined with robust sales from key drugs like Opdivo and effective cost controls, forms the basis for its confident 2026 outlook. The positive market reaction, including a 4% premarket share increase, suggests investor approval of the company's direction and financial management.

FAQ

Q: Why is Bristol Myers Squibb lowering the price of Eliquis?
A: The company is reducing the price to increase sales volume and avoid penalties associated with the U.S. government’s Medicare price negotiations under the Inflation Reduction Act.

Q: What were the main drivers of Bristol Myers' strong Q4 earnings?
A: The primary driver was the strong performance of its cancer drug Opdivo, which saw sales rise 9% to $2.69 billion, significantly exceeding analyst forecasts.

Source: Investing.com