Bristol Myers Squibb (NYSE:BMY) on Thursday noticed a decline in its stock price. This after saying it will slash $2 billion in costs by the end of 2027, expanding its ongoing cost savings effort to chart a path toward long-term growth.
Bristol Myers said savings will be driven by organizational changes and efforts to streamline operations and will allow the company to invest in new science and drug brands expected to deliver growth.
The pharmaceutical giant still plans to cut $1.5 billion in costs by the end of 2025 and funnel that money into drug development. It first announced those cuts in April, and expanded on them with Thursday’s announcement.
The company is preparing to offset the loss in revenue from top-selling treatments slated to lose exclusivity on the market, including its blockbuster blood thinner Eliquis and cancer immunotherapy Opdivo.
Also on Thursday, Bristol Myers Squibb issued full-year 2025 guidance that fell short of Wall Street’s expectations, as some of the company’s older drugs face competition from cheaper generics. That includes four drugs for different cancers: Revlimid, Pomalyst, Sprycel and Abraxane.
Bristol Myers expects revenue to come in around $45.5 billion, which is below the $47.36 billion that analysts surveyed by LSEG were expecting.
BMY shares sank $1.15, or 1.9%, to begin Thursday trading at $58.56.
