Changes in Bristol-Myers Squibb’s 4Q17 Profitability
Bristol-Myers Squibb’s profitability
Bristol-Myers Squibb (BMY) reported 4.0% growth in its revenues to ~$5.4 billion during 4Q17. This growth was driven by its operational growth of 2.0% in revenues and its 2.0% favorable impact of foreign currency. Wall Street analysts expect BMY’s revenues to increase 5.3% to $5.2 billion during 1Q18, compared to $4.9 billion during 1Q17.
Bristol-Myers Squibb reported a net profit of ~$1.12 billion in 4Q17 compared to a profit of ~$1.06 million in 4Q16. Wall Street analysts expect BMY to post a net profit of ~$1.4 million during 1Q18.
Interested in BMY? Don't miss the next report.
Receive e-mail alerts for new research on BMY
Bristol-Myers Squibb’s (BMY) gross margin was reported to be 69.3% for 4Q17 compared to 73.7% for 4Q16. The company’s gross margin was impacted by its increased cost of sales, as well as higher revenue sharing on Eliquis sales. Analysts expect the company’s gross margin to be ~71.3% during 1Q18.
BMY’s research and development expenses increased to ~$1.9 billion during 4Q17 compared to ~$1.5 billion in 4Q16. This increase was due to higher expenses related to clinical trials and research alliances for drugs in the pipeline. Further, the company’s research and development expenses are expected to increase to $1.2 billion during 1Q18.
Bristol-Myers Squibb reported its fiscal 2017 gross margin of 70.8% for 2017 compared to 74.7% for 2016. Its gross margin was impacted by increased cost of sales, as well as higher revenue sharing on its Eliquis sales.
BMY’s research and development expenses increased to ~$6.4 billion during 2017 compared to ~$4.9 billion in 2016. This increase was due to higher expenses related to clinical trials and research alliances for drugs in the pipeline.
The company’s net profit increased to ~$5.0 billion during 2017 compared to ~$4.8 billion during 2016.
Opdivo is one of the largest revenue contributors for the company. Opdivo is approved for the treatment of non-small cell lung cancer (or NSCLC). Other drugs for the treatment of NSCLC include Merck & Co.’s (MRK) Keytruda, Pfizer’s (PFE) Xalkori, Novartis’s (NVS) Tafinlar and Mekinist combination, and Eli Lilly’s (LLY) Cyramza.