NEW YORK (Reuters) - Bristol-Myers Squibb Co (BMY.N) said on Thursday its operating profit rose by around a third from a year ago because fourth-quarter results included some revenue from Celgene, which the U.S. drugmaker bought in a $74 billion deal that closed in late November.
Bristol-Myers shares were up 2.5% as sales from Celgene drugs met or exceeded full-year forecasts the company had provided before it was acquired.
On an operating basis, Bristol said it earned $1.22 a share on $7.95 billion of revenue in the quarter. The results included Celgene revenue beginning Nov. 20. Analyst estimates for the quarter, however, did not include those sales.
The drugmaker also said revenue for both companies over the whole quarter would have been $10.1 billion, a 6% increase from the previous year.
Bristol posted a net loss in the quarter of $1.06 billion, or 55 cents a share. It said results were hurt by one time items, including an accounting adjustment on its inventory and the amortization of some intangible assets it acquired in the quarter.
The company forecast 2020 earnings of $6 to $6.20 per share on revenue of $40.5 billion to $42.5 billion. That compares with average analyst estimate of $6.16 per share on revenue of $42.2 billion, according to IBES data from Refinitiv.
Sales of the Celgene multiple myeloma drug Revlimid were $10.8 billion for the year, in line with the company’s forecast from a year ago. Two of its other cancer treatments, Pomalyst and Abraxane, topped its forecast, with sales of $2.5 billion and $1.2 billion, respectively.
Sales of the blood thinner Eliquis, which Bristol shares with Pfizer Inc (PFE.N) were $2.03 billion in the quarter, slightly topping Wall Street estimates.
Sales of blockbuster cancer treatment Opdivo were $1.76 billion in the quarter, down slightly from the previous quarter and a year earlier, and well below the $3.1 billion in fourth-quarter sales for rival drug Keytruda that Merck & Co (MRK.N) reported on Wednesday.
Before the Celgene deal, Opdivo was viewed as the company’s most important growth driver. But its sales have hovered around $1.8 billion a quarter for over a year and are expected to fall this year.
Bristol investors have been concerned over the dominance of Keytruda, which has become the go to treatment for newly diagnosed advanced lung cancer, the most lucrative oncology market.
Bristol-Myers were trading at $67.21 on Thursday morning. They are up over 30% over the last year.
Reporting by Michael Erman; Editing by Bill Berkrot