Bristol Myers Squibb (NYSE: BMY) shares dipped Thursday, after the drug maker reported first-quarter revenue that topped expectations as its blockbuster blood thinner Eliquis and several new drugs posted sales growth.
But the company swung to a quarterly loss due to one-time charges related to its recently closed deals. It also launched a program to cut $1.5 billion in costs by 2025, and said it would reinvest the money in drug development.
Bristol Myers said it will prioritize investment in its key drug brands and focus its resources on research and development programs that could deliver the highest returns, among other efforts.
For the first quarter, Bristol Myers said the charges that weighed it down primarily reflect its $14-billion acquisition of neuroscience drugmaker Karuna Therapeutics and collaboration agreement with SystImmune, a subsidiary of a Chinese biotech startup, to co-develop and market its experimental cancer treatment.
Bristol Myers, one of the world’s largest pharmaceutical companies, swung to a net loss of $11.9 billion, or $5.89 per share, during the first quarter. That compares to net income of $2.3 billion, or $1.07 per share, for the same period a year ago.
Excluding certain items, its adjusted loss per share was $4.40 for the period.
The loss reflects a one-time $6.30 per share charge related to the recently closed deals.
Bristol Myers reported first-quarter revenue of $11.87 billion, up 5% from the year-earlier period. Its shares began Thursday down $3.61, or 7.4%, to $45.25.
