Biopharmaceutical company Bristol-Myers Squibb Co (NYSE:BMY) has released Q4 results today. They show a rise in revenue in the quarter of 4%, will full year revenue up 7%. This is a relatively strong result in my opinion, with the company making good progress in its major, prioritized brands.
It was able to deliver a non-GAAP EPS of $0.68 when the impact of tax reform was excluded. This was slightly ahead of the $0.67 expected by the market, and shows that the company has been able to translate its sales growth into improving profitability.
There was progress in a range of clinical and regulatory milestones in oncology during the 2017 year. For instance, Opdivo plus Yervoy demonstrated superior progression-free survival versus chemotherapy in first-line non-small cell lung cancer patients with high tumor mutation. Opdivo was also approved in the US for patients with completely resected melanoma with lymph node involvement or metastatic disease.
Looking ahead to the 2018 financial year, there could be further progress made with Bristol-Myers Squibb’s pipeline and its scientific advances. The business seems to have the financial capacity to continue to invest in its R&D function, as well as in its commercial potential.
In 2018, GAAP EPS of $3 to $3.15 is expected to be delivered by the company. This could help to positively catalyse investor sentiment in the stock in my view. As well as this, the outlook for the pharmaceutical and healthcare industry also seems to be generally positive. Although there remains some uncertainty as to the future direction of the industry, global demand for healthcare is set to increase due to a rising world population and changing demographics.
Therefore, I remain upbeat about the investment prospects of Bristol-Myers Squibb following its Q4 results. I feel the company has a solid strategy and growth potential for the long term.