On Thursday, Bristol Myers Squibb & Co (NYSE:BMY) posted third-quarter revenues of $11.89 billion, beating the consensus of $11.28 billion, an increase of 8% year-over-year, or 10% when adjusted for foreign exchange impacts, primarily driven by the Growth Portfolio and Eliquis.

Growth Portfolio worldwide revenues increased to $5.81 billion compared to $4.95 billion a year ago, representing growth of 18% on a reported basis or 20% when adjusted for foreign exchange impacts.

BMO Capital Markets appreciates a conservative approach in the neuropsych space, though it notes management's reserved stance on revenue expectations. It highlights that significant revenue is not expected until the second half of 2025, with a gradual launch anticipated for schizophrenia treatment.

The analyst considers the potential for Alzheimer's psychosis treatment as an added upside, likely to positively impact sentiment.

While Bristol-Myers Squibb's recent quarterly performance showed encouraging progress in top-line growth and cost management, its true transformation will stem from its pipeline, the BMO analyst writes.

The recent approval of Cobenfy, along with newly launched growth products, could bring the momentum investors have been anticipating.

Truist analysts noted that much of the Q3 earnings call centered on KarXT (Cobenfy), a critical asset for treating schizophrenia that could drive significant revenue and support long-term growth.

Truist analyst projects global peak sales at $4.2 billion, below the $5.4 billion consensus estimate.

While business development and partnerships are crucial to diversifying the company's portfolio and strengthening its long-term outlook, Truist emphasized that maintaining dividends and reducing debt remain top priorities.

Price Action: BMY stock is down 1.91% at $54.71 at last check Friday.

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