Bristol Myers Squibb (BMS) has announced that it plans to cut an additional $2 billion in costs by the end of 2027, which is in addition to a previously announced $1.5-billion cost-savings plan that the company announced last April (April 2024).  

The company says its existing strategic productivity initiative will be expanded to include approximately $2 billion in additional annualized cost savings by the end of 2027. Under this expanded initiative, savings will be driven by changes in organizational design and efforts to enhance operational efficiency. Its previously $1.5-billion cost-saving plan, to be realized by the end of this year (2025), is primarily focused on re-investing to fund innovation and growth in its Growth Products portfolio.   

BMS reported 2024 revenues of $48.3 billion, an increase of 7%, or 9% over 2023, when adjusted for foreign exchange impacts. The increase was largely driven by its Growth Portfolio and higher demand for its anticoagulant, Eliquis (apixaban), which was partially offset by the impact of generics on several cancer drugs; Sprycel (dasatinib), Revlimid (lenalidomide), Abraxane (paclitaxel), and Pomalyst (pomalidomide). Worldwide revenues in its Growth Portfolio increased to $22.6 billion in 2024, compared to $19.4 billion in 2023, representing growth of 17% on a reported basis, or 19% when adjusted for foreign exchange impacts. Growth Portfolio revenues were primarily driven by higher demand for Reblozyl (luspatercept-aamt) for treating anemia in certain rare blood disorders, Breyanzi (lisocabtagene maraleucel), for treating certain types of non-Hodgkin’s lymphoma, Camzyos, (mavacamten) for treating obstructive hypertrophic cardiomyopathy, a heart disease, and Opdualag (nivolumab and relatlimab-rmbw) for treating advanced melanoma.  

The company provided full-year 2025 financial guidance with estimated 2025 revenues of $45.5 billion, reflecting a dip from 2024, due to the near-term impact of generics for Revlimid (lenalidomide), Pomalyst (pomalidomide), Sprycel (dasatinib) and Abraxane (paclitaxel), for which the company expects to result in a revenue decline of approximately 18-20% in its Legacy Portfolio. This is expected to be partially offset by the continued strength of its Growth Portfolio. This guidance also reflects an approximate $500 million expected negative impact to revenue due to foreign exchange. 

Source: Bristol Myers Squibb