BMS Reports Mixed Q1 Earnings, Highlights Growth Portfolio Amid Industry Challenges

Bristol Myers Squibb (BMS) released its first-quarter earnings report for 2025, revealing a complex landscape of challenges and opportunities in the pharmaceutical industry. The company's financial results reflect the ongoing impact of generic competition and regulatory changes, while also showcasing the potential of its growth portfolio.

Sales Decline Offset by Growth Products

BMS reported a 6% decline in overall sales to $11.2 billion for the first quarter of 2025. CEO Chris Boerner attributed this decrease to the impact of generics and the Medicare Part D redesign implemented under the Inflation Reduction Act. However, the company's growth portfolio, consisting of 13 drugs including Opdivo and Cobenfy, saw a 16% year-over-year increase in sales from $4.8 billion to $5.6 billion.

Cobenfy, BMS's newly approved schizophrenia drug, generated $27 million in sales during its first full quarter on the market. This figure exceeded analyst expectations, with William Blair estimating $15 million and the consensus estimate at $17.2 million. Despite this promising start, the drug recently faced a setback in its Phase III ARISE trial, failing to demonstrate improved schizophrenia symptoms when used alongside atypical antipsychotics.

Cost-Saving Measures and Financial Outlook

BMS's efforts to reduce operating expenses have begun to show results, with a $500 million decrease compared to the previous year. This is part of a larger initiative aimed at saving $1.5 billion overall, which may involve significant job cuts across the company.

Despite the challenges, BMS has adjusted its sales guidance for 2025 upward, from $45.5 billion to a range of $45.8–$46.8 billion. This optimistic outlook suggests confidence in the company's ability to navigate the current market conditions and regulatory environment.

Industry-Wide Concerns: Tariffs and Drug Pricing

The specter of pharmaceutical tariffs loomed over the earnings call, with BMS executives addressing concerns about potential impacts on the industry. CEO Chris Boerner emphasized the company's significant U.S.-based operations and efforts to reduce supply chain disruptions.

BMS also expressed support for the administration's exploration of "Most Favored Nation" drug pricing, which would align U.S. drug prices with the lowest costs paid by comparable nations. Boerner stated, "We agree with the administration on Most Favored Nations statuses; we need other countries to contribute more. We need to address the complexity of the US healthcare system."