Growing revenue for promising new medicines for cancer, heart disease and other serious conditions helped US drugmakers improve results after several disappointing quarters and beat Wall Street expectations.
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To support the shift, the company spent 13 percent more on advertising in the quarter, to run consumer commercials for blockbuster new cancer drug Opdivo, and boosted research spending 15 percent, partly through deals to expand its pipeline of experimental drugs for cancer.
Analysts expect Opdivo will amass billions of dollars in yearly sales, as its launch progresses and use broadens to other cancers. It posted earnings per share (EPS) of $0.39, compared to the consensus estimates of $0.35. Analysts expected per-share profit of 35 cents.
Sales of drugs in its Hepatitis C franchise soared to $402 million from $49 million, with a contribution from domestic sales of $111 million in the latest period. Sales of anticlotting drug Eliquis more than doubled to $466 million. ( BMY ) reported third quarter earnings that exceeded analyst estimates. -Earnings Decline (Y-o-Y): -2.1% -EPS (Q3): $0.42 vs. $0.43 a year ago.
Harvoni and Sovaldi, which can cure more than 90 percent of patients in eight to 12 weeks, dominate the market over rival AbbVie Inc.’s Viekira Pak, a multi-pill regimen, but new competitors, such as one from Merck & Co., could hit the market as early as January and cut into Gilead’s gold mine. The revenue was up 4% year-over-year (YoY).
Shares were up 2.4% at US66.06 in lunchtime trading.
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Operating loss for the quarter was $110 million, compared with an operating income of $1 million in the previous year period. It generated $305 million in sales in the third quarter, though it’s eating into sales of slightly older Yervoy, which fell by a third to $240 million.
