BMS Stock Rises on Strong 2026 Forecast, Eliquis Strategy

BMS Projects Strong 2026 Growth, Stock Surges

Bristol Myers Squibb has issued a 2026 revenue and profit forecast that surpasses Wall Street expectations, causing its shares to climb by 2.6%. The company's optimistic outlook is driven by a strategic price reduction for its top-selling blood thinner, Eliquis.

Strategic Outlook and Performance

The company projects 2026 revenue between $46.0 billion and $47.5 billion, significantly ahead of the $44.2 billion analyst consensus. This growth is expected despite Eliquis being subject to Medicare price negotiations. Bristol Myers stated that a lower list price will help avoid government penalties and drive volume. The forecast followed a strong fourth quarter, where revenue reached $12.5 billion, beating estimates, largely due to strong sales of the cancer drug Opdivo.

Market Impact and Financial Discipline

Following the announcement, the drugmaker's shares rose to $59.14. The positive financial forecast is also supported by a cost-cutting program that has already delivered $1 billion in savings. The company noted it had reduced research and development spending by 11% in the previous year, reinforcing its focus on operational efficiency.

Forward Outlook

Bristol Myers' revised pricing strategy for Eliquis is positioned to drive near-term growth, countering previous market concerns about a sales decline. Investors will be closely watching the execution of this strategy alongside the performance of its broader drug pipeline.

FAQ

Q: Why is Bristol Myers Squibb cutting the price of Eliquis?
A: The company is lowering the price to avoid U.S. Medicare penalties related to inflation, a move it expects will ultimately drive higher revenue.

Q: What is Bristol Myers' revenue forecast for 2026?
A: The company projects total revenue to be between $46.0 billion and $47.5 billion for 2026.

Source: Investing.com