Bristol Myers Squibb Expands Cost-Cutting Measures and Streamlines Pipeline for Future Growth

Bristol Myers Squibb (BMS) announced plans to cut an additional $2 billion in annual expenses by the end of 2027, expanding on its previous $1.5 billion cost-cutting initiative46.

The company is streamlining its pipeline, discontinuing 12 programs, including a successor version of its immunotherapy Yervoy1.

BMS is preparing for the loss of patent exclusivity for key drugs like Eliquis and Opdivo, expected around 202846.

The company's 2025 revenue guidance of $45.5 billion fell short of analyst expectations, reflecting the impact of generic competition on older drugs24.

BMS is focusing on its "growth portfolio" of newer medicines, which saw a 21% increase in revenue in 20244.

The company has been active in acquisitions, recently purchasing Karuna Therapeutics, RayzeBio, and Mirati Therapeutics to bolster its pipeline16.

BMS has terminated collaborations with Immatics and Century Therapeutics as part of its portfolio prioritization efforts10.

The company aims to become a "leaner, more efficient company" while investing in growth brands and promising areas of science6.

BMS is planning three Phase III trials for Cobenfy, a recently approved schizophrenia drug acquired through the Karuna Therapeutics purchase6.

The pharmaceutical giant is open to further deals or partnerships to strengthen its pipeline in core therapeutic areas6.

Sources:

1. https://finance.yahoo.com/news/bristol-myers-cut-6-workforce-101100436.html

2. https://www.nbcsandiego.com/news/business/money-report/bristol-myers-squibb-plans-2-billion-in-cost-cuts-by-2027-issues-weak-guidance/3747329/

4. https://www.biopharmadive.com/news/bristol-myers-cost-cuts-2024-earnings-results/739416/

6. https://www.biospace.com/business/bms-adds-2b-to-cost-cutting-plans-eyes-deals-after-cobenfy-success

10. https://www.biospace.com/business/bms-cost-cutting-campaign-claims-collabs-with-immatics-century