Bristol-Myers Squibb Co (BMY) today reported second-quarter financial results for its fiscal 2014 before the markets opened. The company reported per-share earnings (EPS) of $0.48, which were ahead of analysts’ estimates of $0.45. Revenues for the quarter were $3.89 billion, about in line with the consensus expectation of $3.86 billion.
Revenues were down 4% year-over-year (YoY), mainly due to the complete takeover of the diabetes alliance by AstraZeneca plc (ADR) (AZN) last December. Excluding that factor, the company’s revenues were up 7% YoY, mainly driven by the company’s immuno-oncology drug yervoy, which brought in $321 million compared to $233 million in the same period last year. The company’s cardiovascular drug Eliquis, a blood thinner, had revenues of $171 million compared to the $12 million in the same period last year. The drug’s sales also marched ahead of analysts’ estimates of $129.2 million.
The company’s virology portfolio was weaker during the quarter with its HIV drug, reyataz, declining 16% to $362 million for the quarter. The company’s immunoscience drug orencia grew 14% during the quarter to bring in revenues of $402 million.
Bristol-Myers was able to expand its margins by 1.9 percentage points to 74.5% as the company reduced its marketing and promotions spending during the quarter. Research and Development spending increased for the quarter to $1.4 billion, a 49% increase.
During the quarter, the company also reported upbeat phase 3 results for its oncology drug nivolumab, which showed a better overall survival rate when compared with dacarbazine. Bristol-Myers expects to submit its biologics licensing application for the drug in the third quarter. It is also testing the drug with Yervoy for the treatment of many other cancers.
The company also applied for FDA clearance for its HCV treating compounds to compete against Gilead Sciences, Inc.’s (GILD) Sovaldi, for which it expects a response this November.
Bristol-Myers reaffirmed its per-share earnings guidance of $1.70-1.80 for 2014. The stock is trading up 0.4% on the NYSE as of 2:26 PM EDT.