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Bristol-Myers Squibb Company (NYSE:BMY) reported its Q2 FY2019 earnings on Thursday and they were better than estimates. The reports come hot on the heels of drug-trial data which was damaging to the company’s stock.

Disappointing data, stock hit

On Wednesday, BMY revealed that a combination of its lead drugs focused on cancer did not meet the desired endpoint requirements. Particularly, the company was testing the combination of Yervoy and Opdivo, and chemotherapy. The Phase 3 study was targeted at lung cancer patients but the survival rate was disappointing.

In the immediate aftermath of the news, the BMY stock declined 4.5% afterhours. The fall on Wednesday took the decline for 2019 to 16.8%. In the trailing 12-month through Wednesday, the stock was down 27%. Although the negative data might have contributed to a sizable portion of the drop, much of the decline resulted from the acquisition of Celgene. The acquisition deal has been very controversial with investors openly criticizing it. 

Earnings report comes to the stock’s rescue

On Thursday, BMY revealed that the revenue for Q2 FY2019 was at $6.273 billion, having risen from $5.704 in Q2 FY2018. Particularly, the strong revenue numbers came from robust sales for cancer treatment drug, Opdivo and Eliquis, a blood-thinner. Notably, sales of Eliquis grew by 24% in Q2 to $2.042 billion while Opdivo sales registered a 12% growth to settle at $1.823 billion.

Interestingly, the consensus estimate for BMY’s revenues was $6.115 billion. Therefore, the topping of estimates pushed the stock back into the green after suffering all Wednesday. After the markets opened on Thursday, the stock jumped 5.2%.

According to Giovanni Caforio, M.D., the CEO and Chairman of BMY, the strong financial results come on the back of a robust operating performance across a range of products.

“Through strong commercial execution and financial discipline we are establishing a solid foundation from which we can build the leading biopharma company, well-positioned to address the unmet needs of our patients and create long-term shareholder value,” Caforio commented during the release of the results.

Caforio further reiterated their intention to integrated Celgene into the BMY family despite the challenges which are apparent.

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