Bristol Myers forecasts upbeat 2026, expecting Eliquis price cut to pay off
By Michael Erman
Feb 5 (Reuters) - Bristol Myers Squibb on Thursday forecast 2026 results above Wall Street estimates, saying that price cuts to its blood thinner Eliquis will help drive up revenue, sending shares of the drugmaker up 4% in premarket trading.
The company projected total 2026 revenue in a range of $46.0 billion to $47.5 billion, ahead of the $44.2 billion analysts have forecast, according to LSEG data, with the company expecting Eliquis revenue to rise 10% to 15% this year.
Analysts had been expecting sales of the blood thinner, which brought in $14.4 billion in 2025, to fall significantly this year due to the lower price and because the drug is one of the first 10 medicines subject to Medicare price negotiations under the Inflation Reduction Act.
But the company said the lower price for Eliquis will help it avoid penalties imposed by the U.S. government's Medicare health insurance program.
"The broader pricing dynamics starting this year for Eliquis really was the impetus to reevaluate our pricing strategy," Chief Commercialization Officer Adam Lenkowsky said in an interview.
"Eliquis will be an important driver of growth in 2026."
Bristol Myers sells Eliquis with partner Pfizer Inc. The two companies announced plans in June to start selling Eliquis directly to cash-paying U.S. patients at a discount of more than 40% and followed that up with a January 1 price cut to commercial patients.
Bristol Myers said it expects an adjusted profit between $6.05 and $6.35 per share for 2026, also above the consensus analyst estimate of $6.02.
Q4 EARNINGS BEAT ESTIMATES ON OPDIVO SALES
The drugmaker also reported fourth-quarter results that beat Wall Street estimates on the strong performance of cancer immunotherapy Opdivo.
The U.S. drugmaker posted an adjusted profit of $1.26 per share, ahead of an average analyst estimate of $1.12. Quarterly revenues rose 1% to $12.5 billion, topping a consensus forecast of $12.28 billion.
Opdivo sales increased 9% to $2.69 billion - ahead of forecasts of $2.34 billion - and the new subcutaneously administered version of the drug added another $133 million.
Lenkowsky said Opdivo’s strength in the quarter came from demand from new indications for the cancer drug, as well as strong market share in first-line lung cancer treatment.
Also in the interview, Chief Financial Officer David Elkins said the company's cost-cutting program has already delivered $1 billion out of a planned $2 billion in total savings. The company said it cut its spending on research and development for new drugs by 18% in 2025 compared with the previous year.
(Reporting by Michael Erman, additional reporting by Christy Santhosh in Bengaluru; Editing by Tom Hogue)
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