CORRECTED-Bristol Myers forecasts upbeat 2026, expects Eliquis price cut to pay off

By Michael Erman

Feb 5 (Reuters) - Bristol Myers Squibb BMY.N on Thursday forecast 2026 revenue and profit above Wall Street estimates, saying that price cuts to its blood thinner Eliquis will help drive up revenue, and shares of the U.S. drugmaker rose 2.6%.

The company projected total 2026 revenue 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 a lower list price for Eliquis will help it avoid penalties imposed by the U.S. government's Medicare health insurance program for price increases that outpace inflation.

"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 the drug with partner Pfizer PFE.N. 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.

It said it expects Eliquis sales to fall $1.5 billion to $2 billion in 2027 after the blood clot preventer loses patent protection in Europe toward the end of the year.

Bristol Myers said it expects an adjusted profit between $6.05 and $6.35 per share for 2026, also above the consensus analysts' estimate of $6.02.

The company's shares rose 2.6% to $59.14 in morning trading.

FOURTH QUARTER EARNINGS BEAT ESTIMATES

The drugmaker also reported fourth-quarter results that beat Wall Street estimates on the strong performance of cancer immunotherapy Opdivo.

Bristol Myers posted an adjusted profit of $1.26 per share, topping analysts' expectations by 14 cents. Quarterly revenue rose 1% to $12.5 billion, exceeding the consensus forecast of $12.28 billion.

Opdivo sales increased 9% to $2.69 billion, ahead of forecasts of $2.34 billion. The new subcutaneously administered version of the drug added another $133 million.

Lenkowsky said Opdivo's strength in the quarter came from demand following approvals for treating additional cancers, as well as strong market share as a first-line lung cancer treatment.

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 11% in 2025 compared with the previous year.