Delaware | 1-1136 | 22-0790350 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification Number) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. | Results of Operations and Financial Condition. |
Item 9.01. | Financial Statements and Exhibits. |
99.1 | Press release of Bristol-Myers Squibb Company dated April 29, 2014. | |
99.2 | Certain supplemental information posted on Bristol-Myers Squibb Company’s website at www.bms.com not included in the press release. |
Exhibit No. | Description | |
99.1 | Press release of Bristol-Myers Squibb Company dated April 29, 2014. | |
99.2 | Certain supplemental information posted on Bristol-Myers Squibb Company’s website at www.bms.com not included in the press release. |
• | Posts First Quarter GAAP EPS of $0.56 and Non-GAAP EPS of $0.46 |
• | Announces Plans to Initiate a Rolling Submission for nivolumab in Third-Line Squamous Cell Non-Small Cell Lung Cancer Based on Study 063, to be Completed by Year-end |
• | Achieved Important Regulatory Milestones for Eliquis, daclatasvir/asunaprevir and Diabetes Franchise |
• | Acquires iPierian, Inc., a privately held biotechnology company |
• | Adjusts 2014 GAAP EPS and Non-GAAP EPS Guidance Ranges to $1.70 - $1.80 |
First Quarter | |||||||||
$ amounts in millions, except per share amounts | 2014 | 2013 | Change | ||||||
Total Revenues | $ | 3,811 | $ | 3,831 | (1)% | ||||
GAAP Diluted EPS | 0.56 | 0.37 | 51% | ||||||
Non-GAAP Diluted EPS | 0.46 | 0.41 | 12% |
• | Bristol-Myers Squibb posted first quarter 2014 revenues of $3.8 billion, a decrease of 1% compared to the same period a year ago. Excluding the recently divested Diabetes Alliance, global revenues increased 5% to $3.6 billion. |
• | U.S. revenues decreased 10% to $1.8 billion in the quarter compared to the same period a year ago. International revenues increased 10% to $2.0 billion. |
• | Gross margin as a percentage of revenues was 74.6% in the quarter compared to 72.3% in the same period a year ago. |
• | Marketing, selling and administrative expenses decreased 4% to $957 million in the quarter. |
• | Advertising and product promotion spending decreased 14% to $163 million in the quarter. |
• | Research and development expenses increased 2% to $946 million in the quarter. |
• | The effective tax rate on earnings before income taxes was 5.0% in the quarter, compared to 7.6% in the first quarter last year. |
• | The company reported net earnings attributable to Bristol-Myers Squibb of $937 million, or $0.56 per share, in the quarter compared to $609 million, or $0.37 per share, a year ago. |
• | The company reported non-GAAP net earnings attributable to Bristol-Myers Squibb of $766 million, or $0.46 per share, in the first quarter, compared to $679 million, or $0.41 per share, for the same period in 2013. An overview of specified items is discussed under the “Use of Non-GAAP Financial Information” section. |
• | Cash, cash equivalents and marketable securities were $10.6 billion, with a net cash position of $3.0 billion, as of March 31, 2014. |
• | In April, the company met with the U.S. Food and Drug Administration (FDA) regarding the results of Study 063, which evaluated nivolumab in third-line squamous cell non-small cell lung cancer, and plans to initiate a rolling submission for this indication based on Study 063 in the coming days. The company expects to complete the rolling submission by year-end. |
• | In March, the company and its partner, Pfizer, announced that the FDA approved a Supplemental New Drug Application for Eliquis to reduce the risk of deep vein thrombosis (DVT), which may lead to pulmonary embolism (PE), in patients who have undergone hip or knee replacement surgery. DVT is a blood clot that forms in a large vein, usually in the lower leg, thigh or pelvis and can lead to a PE when a portion or all of a blood clot breaks off and travels to the lungs, blocking one or more blood vessels. A PE can lead to sudden death. |
• | In March, the company and its partner, Pfizer, announced the results of a pre-specified subanalysis of the Phase III ARISTOTLE trial assessing the effect of blood pressure control on outcomes. The study showed that the results for stroke risk reduction for Eliquis versus warfarin were consistent with the overall ARISTOTLE study results, demonstrating that Eliquis reduced stroke or systemic embolism, caused fewer major bleeding events and reduced all-cause mortality as compared to warfarin, regardless of blood pressure control. The results also showed that poor blood pressure control was associated with a substantially higher risk of stroke or systemic embolism, independent of Eliquis or warfarin treatment. The data were presented at the American College of Cardiology’s 63rd Annual Scientific Session in Washington, D.C. |
• | In February, the company and its partner, Pfizer, announced that results of a pre-specified subanalysis of the Phase III ARISTOTLE trial in relation to patient age were published in the European Heart Journal. The subanalysis found consistent results across age groups for reducing the risk of stroke and systemic embolism and reducing the risk of all-cause death with fewer bleeding events for Eliquis versus warfarin. Owing to the higher risk in older age (75 and older), the absolute benefit to patients with nonvalvular atrial fibrillation was greater with Eliquis in the older population. |
• | In April, the company announced that it submitted New Drug Applications (NDAs) to the FDA for the investigational products daclatasvir (DCV), an NS5A replication complex inhibitor, and asunaprevir (ASV), an NS3 protease inhibitor. The data submitted in the NDAs support the use of DCV+ASV in patients with genotype 1b hepatitis C (HCV). The DCV NDA also seeks approval for use of this compound in combination with other agents for multiple genotypes. The submissions are subject to FDA review for acceptance for filing. |
• | In April, at The International Liver Congress in London, the company announced the first Phase III results from the global HALLMARK Dual study investigating the all-oral, interferon- and ribavirin-free regimen of DCV+ASV among genotype 1b HCV patients. Results showed that the 24-week regimen achieved an overall sustained virologic response (a functional cure) 12 weeks after the end of treatment (SVR12) among treatment naïve (90%), peginterferon/ribavirin non-responder (82%), and peginterferon/ribavirin ineligible/intolerant (82%) patients, including |
• | In February, the company announced that the FDA has granted its investigational DCV+ASV dual regimen Breakthrough Therapy Designation for use as a combination therapy in the treatment of genotype 1b chronic HCV infection. The designation is based on data from the company’s ongoing Phase III clinical trial program evaluating the all-oral combination regimen of DCV+ASV without ribavirin. |
• | In April, the company announced the submission of an NDA to the FDA for a fixed-dose combination of atazanavir sulfate, a protease inhibitor marketed as Reyataz, and cobicistat, an investigational pharmacokinetic enhancer, or boosting agent, that can increase the level of certain HIV-1 medicines in the blood and make them more effective. The company is seeking approval of the fixed-dose combination tablet for use in combination with other antiretroviral agents for the treatment of HIV-1 infection. Cobicistat is being developed by Gilead Sciences, Inc. |
• | In March, at the 21st Conference on Retroviruses and Opportunistic Infections in Boston, the company presented 24-week Phase IIb data for its investigational compound, BMS-663068, that demonstrated similar response rates (HIV-1 RNA <50 c/mL) when compared to a boosted protease inhibitor, Reyataz, with ritonavir. Among HIV-1 infected treatment-experienced patients receiving BMS-663068, 69% to 80% had HIV-1 RNA levels of <50 c/mL (a measure indicating virus replication is undetectable), compared to 75% of patients taking Reyataz with ritonavir. |
• | In March, following the company’s sale of its global diabetes business to AstraZeneca, the Japanese Ministry of Health, Labor and Welfare (MHLW) approved Forxiga® as a once-daily oral treatment for type 2 diabetes in Japan. The Forxiga® application was submitted to MHLW by Bristol-Myers Squibb K.K. |
• | Also in March, the FDA approved the Bydureon® pen (exenatide extended-release for injectable suspension) 2 mg as an adjunct to diet and exercise to improve glycemic control in adults with |
• | In February, the FDA approved orphan drug Myalept™ (metreleptin for injection) as an adjunct to diet as replacement therapy for the treatment of complications of leptin deficiency in patients with congenital or acquired generalized lipodystrophy. Myalept™ was being developed by the Bristol-Myers Squibb-AstraZeneca collaboration at the time of the company’s sale of its global diabetes business to AstraZeneca and was among the products included in that sale. Bristol-Myers Squibb continues to provide AstraZeneca with development and regulatory support for Myalept™ pursuant to the company’s development agreement with AstraZeneca. |
• | In January, the company and its partner, AstraZeneca, announced that the FDA approved Farxiga™ (dapagliflozin), a once-daily oral treatment indicated as an adjunct to diet and exercise to improve glycemic control in adults with type 2 diabetes mellitus. Farxiga™ is marketed by AstraZeneca as Forxiga® outside the United States. |
• | In April, the company announced its acquisition of iPierian, Inc., a privately held biotechnology company focused on the discovery and development of new treatments for Tauopathies, a class of neurodegenerative diseases associated with the pathological aggregation of Tau protein in the human brain. The acquisition of iPierian advances the company’s discovery strategy to pursue therapeutics for genetically defined diseases. The acquisition gives Bristol-Myers Squibb full rights to iPierian’s lead asset IPN007, an innovative preclinical monoclonal antibody that represents a promising new approach to treat progressive supranuclear palsy (PSP) and other Tauopathies, and has the potential to commence Phase 1 clinical trials by early 2015. |
• | In April, the company and Samsung BioLogics increased the scope of their existing manufacturing agreement to have Samsung manufacture commercial drug substances and drug product for several Bristol-Myers Squibb biologic medicines at its manufacturing site in Incheon, South Korea. |
• | In March, the company signed a collaboration agreement with Five Prime Therapeutics for the discovery, development and commercialization of immuno-oncology (I-O) therapies directed at targets identified in two undisclosed immune checkpoint pathways using Five Prime’s proprietary |
• | Worldwide revenues between $15.2 billion and $15.8 billion. |
• | Full-year gross margin as a percentage of revenues between 75% and 76%. |
• | Advertising and promotion expense decreasing in the mid-teen-digit range. |
• | Marketing, sales and administrative expenses decreasing in the mid-single-digit range. |
• | Research and development expenses growing in the mid-single-digit range. |
• | An effective tax rate of approximately 18%. |
Worldwide Revenues | U.S. Revenues | |||||||||||||||||||||
2014 | 2013 | % Change | 2014 | 2013 | % Change | |||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||
Key Products | ||||||||||||||||||||||
Virology | ||||||||||||||||||||||
Baraclude | $ | 406 | $ | 366 | 11 | % | $ | 70 | $ | 68 | 3 | % | ||||||||||
Reyataz | 344 | 361 | (5 | )% | 176 | 193 | (9 | )% | ||||||||||||||
Sustiva Franchise | 319 | 387 | (18 | )% | 228 | 251 | (9 | )% | ||||||||||||||
Oncology | ||||||||||||||||||||||
Erbitux | 169 | 162 | 4 | % | 158 | 158 | — | |||||||||||||||
Sprycel | 342 | 287 | 19 | % | 145 | 115 | 26 | % | ||||||||||||||
Yervoy | 271 | 229 | 18 | % | 146 | 159 | (8 | )% | ||||||||||||||
Neuroscience | ||||||||||||||||||||||
Abilify | 540 | 522 | 3 | % | 325 | 328 | (1 | )% | ||||||||||||||
Immunoscience | ||||||||||||||||||||||
Orencia | 363 | 320 | 13 | % | 229 | 214 | 7 | % | ||||||||||||||
Cardiovascular | ||||||||||||||||||||||
Eliquis | 106 | 22 | ** | 61 | 17 | ** | ||||||||||||||||
Diabetes Alliance | 179 | 358 | (50 | )% | 114 | 292 | (61 | )% | ||||||||||||||
Mature Products and All Other | 772 | 817 | (6 | )% | 113 | 176 | (36 | )% | ||||||||||||||
Total | 3,811 | 3,831 | (1 | )% | 1,765 | 1,971 | (10 | )% | ||||||||||||||
Total Excluding Diabetes Alliance | 3,632 | 3,473 | 5 | % | 1,651 | 1,679 | (2 | )% |
** | In excess of 100% |
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Net product sales | $ | 2,807 | $ | 2,957 | ||||
Alliance and other revenues | 1,004 | 874 | ||||||
Total Revenues | 3,811 | 3,831 | ||||||
Cost of products sold | 968 | 1,063 | ||||||
Marketing, selling and administrative | 957 | 994 | ||||||
Advertising and product promotion | 163 | 189 | ||||||
Research and development | 946 | 930 | ||||||
Other (income)/expense | (208 | ) | (19 | ) | ||||
Total Expenses | 2,826 | 3,157 | ||||||
Earnings Before Income Taxes | 985 | 674 | ||||||
Provision for income taxes | 49 | 51 | ||||||
Net Earnings | 936 | 623 | ||||||
Net Earnings/(Loss) Attributable to Noncontrolling Interest | (1 | ) | 14 | |||||
Net Earnings Attributable to BMS | $ | 937 | $ | 609 | ||||
Earnings per Common Share | ||||||||
Basic | $ | 0.57 | $ | 0.37 | ||||
Diluted | $ | 0.56 | $ | 0.37 | ||||
Average Common Shares Outstanding: | ||||||||
Basic | 1,652 | 1,638 | ||||||
Diluted | 1,666 | 1,655 | ||||||
Other (Income)/Expense | ||||||||
Interest expense | $ | 54 | $ | 50 | ||||
Investment income | (23 | ) | (25 | ) | ||||
Provision for restructuring | 21 | 33 | ||||||
Litigation charges | 29 | — | ||||||
Equity in net income of affiliates | (36 | ) | (36 | ) | ||||
Gain on sale of product lines, businesses and assets | (259 | ) | (1 | ) | ||||
Other alliance and licensing income | (108 | ) | (57 | ) | ||||
Pension curtailments, settlements and special termination benefits | 64 | — | ||||||
Other | 50 | 17 | ||||||
Other (income)/expense | $ | (208 | ) | $ | (19 | ) | ||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Accelerated depreciation, asset impairment and other shutdown costs | $ | 45 | $ | — | ||||
Amortization of acquired Amylin intangible assets | — | 138 | ||||||
Amortization of Amylin collaboration proceeds | — | (67 | ) | |||||
Amortization of Amylin inventory adjustment | — | 14 | ||||||
Cost of products sold | 45 | 85 | ||||||
Marketing, selling and administrative* | 3 | 1 | ||||||
Upfront, milestone and other licensing payments | 15 | — | ||||||
IPRD impairment | 33 | — | ||||||
Research and development | 48 | — | ||||||
Provision for restructuring | 21 | 33 | ||||||
Gain on sale of product lines, businesses and assets | (259 | ) | — | |||||
Acquisition and alliance related items | 16 | — | ||||||
Litigation charges | 25 | — | ||||||
Loss on debt redemption | 45 | — | ||||||
Upfront, milestone and other licensing receipts | — | (14 | ) | |||||
Pension curtailments, settlements and special termination benefits | 64 | — | ||||||
Other (income)/expense | (88 | ) | 19 | |||||
Increase to pretax income | 8 | 105 | ||||||
Income tax on items above | (179 | ) | (35 | ) | ||||
Increase/(decrease) to net earnings | $ | (171 | ) | $ | 70 |
* Specified items in marketing, selling and administrative are process standardization implementation costs. |
Three months ended March 31, 2014 | GAAP | Specified Items* | Non GAAP | ||||||||
Gross Profit | $ | 2,843 | 45 | $ | 2,888 | ||||||
Marketing, selling and administrative | 957 | (3 | ) | 954 | |||||||
Research and development | 946 | (48 | ) | 898 | |||||||
Other (income)/expense | (208 | ) | 88 | (120 | ) | ||||||
Effective Tax Rate | 5.0 | % | 18.0 | % | 23.0 | % | |||||
Three months ended March 31, 2013 | GAAP | Specified Items* | Non GAAP | ||||||||
Gross Profit | $ | 2,768 | 85 | $ | 2,853 | ||||||
Marketing, selling and administrative | 994 | (1 | ) | 993 | |||||||
Research and development | 930 | — | 930 | ||||||||
Other (income)/expense | (19 | ) | (19 | ) | (38 | ) | |||||
Effective Tax Rate | 7.6 | % | 3.4 | % | 11.0 | % |
* | Refer to the Specified Items schedule for further details. Effective tax rate on the Specified Items represents the difference between the GAAP and Non-GAAP effective tax rate. |
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Net Earnings Attributable to BMS – GAAP | $ | 937 | $ | 609 | ||||
Earnings attributable to unvested restricted shares | — | — | ||||||
Net Earnings used for Diluted EPS Calculation – GAAP | $ | 937 | $ | 609 | ||||
Net Earnings Attributable to BMS – GAAP | $ | 937 | $ | 609 | ||||
Less Specified Items* | (171 | ) | 70 | |||||
Net Earnings Attributable to BMS – Non-GAAP | 766 | 679 | ||||||
Earnings attributable to unvested restricted shares | — | — | ||||||
Net Earnings used for Diluted EPS Calculation – Non-GAAP | $ | 766 | $ | 679 | ||||
Average Common Shares Outstanding – Diluted | 1,666 | 1,655 | ||||||
Diluted Earnings Per Share — GAAP | $ | 0.56 | $ | 0.37 | ||||
Diluted EPS Attributable to Specified Items | (0.10 | ) | 0.04 | |||||
Diluted Earnings Per Share — Non-GAAP | $ | 0.46 | $ | 0.41 |
* | Refer to the Specified Items schedule for further details. |
March 31, 2014 | December 31, 2013 | |||||||
Cash and cash equivalents | $ | 5,225 | $ | 3,586 | ||||
Marketable securities - current | 1,834 | 939 | ||||||
Marketable securities - long term | 3,558 | 3,747 | ||||||
Cash, cash equivalents and marketable securities | 10,617 | 8,272 | ||||||
Short-term borrowings and current portion of long-term debt | (281 | ) | (359 | ) | ||||
Long-term debt | (7,367 | ) | (7,981 | ) | ||||
Net cash/(debt) position | $ | 2,969 | $ | (68 | ) |
Revenues | 2013 | 2014 | % Change | FX Impact | ||||||||||||||||||||||||||||||||||||||||||||||||
1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | Qtr vs. Qtr | YTD vs. YTD | Qtr vs. Qtr | YTD vs. YTD | |||||||||||||||||||||||||||||||||||
Total | $ | 3,831 | $ | 4,048 | $ | 7,879 | $ | 4,065 | $ | 11,944 | $ | 4,441 | $ | 16,385 | $ | 3,811 | (1)% | (1)% | (1)% | (1)% | ||||||||||||||||||||||||||||||||
US and Puerto Rico | 1,971 | 2,045 | 4,016 | 2,037 | 6,053 | 2,265 | 8,318 | 1,765 | (10)% | (10)% | — | — | ||||||||||||||||||||||||||||||||||||||||
Europe | 946 | 950 | 1,896 | 985 | 2,881 | 1,049 | 3,930 | 948 | — | — | 2% | 2% | ||||||||||||||||||||||||||||||||||||||||
Rest of the World | 765 | 835 | 1,600 | 805 | 2,405 | 890 | 3,295 | 830 | 8% | 8% | (7)% | (7)% | ||||||||||||||||||||||||||||||||||||||||
Other | 149 | 218 | 367 | 238 | 605 | 237 | 842 | 268 | 80% | 80% | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||
% of Revenues | 2013 | 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||||
1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | |||||||||||||||||||||||||||||||||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||||||||||||||||||||||||
US and Puerto Rico | 51.4 | % | 50.5 | % | 51.0 | % | 50.1 | % | 50.7 | % | 51.0 | % | 50.8 | % | 46.3 | % | ||||||||||||||||||||||||||||||||||||
Europe | 24.7 | % | 23.5 | % | 24.1 | % | 24.2 | % | 24.1 | % | 23.6 | % | 24.0 | % | 24.9 | % | ||||||||||||||||||||||||||||||||||||
Rest of the World | 20.0 | % | 20.6 | % | 20.3 | % | 19.8 | % | 20.1 | % | 20.0 | % | 20.1 | % | 21.8 | % | ||||||||||||||||||||||||||||||||||||
Other | 3.9 | % | 5.4 | % | 4.6 | % | 5.9 | % | 5.1 | % | 5.4 | % | 5.1 | % | 7.0 | % |
QUARTER-TO-DATE | Revenues | Analysis of % Change | ||||||||||||||||||
2014 | 2013 | Total Change | Volume | Price | Foreign Exchange | |||||||||||||||
US and Puerto Rico | $ | 1,765 | $ | 1,971 | (10 | )% | (12 | )% | 2 | % | — | |||||||||
Europe | 948 | 946 | — | 3 | % | (5 | )% | 2 | % | |||||||||||
Rest of the World | 830 | 765 | 8 | % | 18 | % | (3 | )% | (7 | )% | ||||||||||
Other | 268 | 149 | 80 | % | N/A | N/A | N/A | |||||||||||||
Total | $ | 3,811 | $ | 3,831 | (1 | )% | 1 | % | (1 | )% | (1 | )% |
2013 | 2014 | % Change | ||||||||||||||||||||||||||||||||||||||||||||||
1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | Qtr vs. Qtr | YTD vs. YTD | |||||||||||||||||||||||||||||||||
Net product sales | $ | 2,957 | $ | 3,024 | $ | 5,981 | $ | 3,025 | $ | 9,006 | $ | 3,298 | $ | 12,304 | $ | 2,807 | (5)% | (5)% | ||||||||||||||||||||||||||||||
Alliance and other revenues | 874 | 1,024 | 1,898 | 1,040 | 2,938 | 1,143 | 4,081 | 1,004 | 15% | 15% | ||||||||||||||||||||||||||||||||||||||
Total Revenues | $ | 3,831 | $ | 4,048 | $ | 7,879 | $ | 4,065 | $ | 11,944 | $ | 4,441 | $ | 16,385 | $ | 3,811 | (1)% | (1)% | ||||||||||||||||||||||||||||||
Cost of products sold | 1,063 | 1,108 | 2,171 | 1,175 | 3,346 | 1,273 | 4,619 | 968 | (9)% | (9)% | ||||||||||||||||||||||||||||||||||||||
Marketing, selling and administrative | 994 | 1,042 | 2,036 | 980 | 3,016 | 1,068 | 4,084 | 957 | (4)% | (4)% | ||||||||||||||||||||||||||||||||||||||
Advertising and product promotion | 189 | 218 | 407 | 194 | 601 | 254 | 855 | 163 | (14)% | (14)% | ||||||||||||||||||||||||||||||||||||||
Research and development | 930 | 951 | 1,881 | 893 | 2,774 | 957 | 3,731 | 946 | 2% | 2% | ||||||||||||||||||||||||||||||||||||||
Other (income)/expense | (19 | ) | 199 | 180 | 5 | 185 | 20 | 205 | (208 | ) | ** | ** | ||||||||||||||||||||||||||||||||||||
Total Expenses | 3,157 | 3,518 | 6,675 | 3,247 | 9,922 | 3,572 | 13,494 | 2,826 | (10)% | (10)% | ||||||||||||||||||||||||||||||||||||||
Earnings Before Income Taxes | $ | 674 | $ | 530 | $ | 1,204 | $ | 818 | $ | 2,022 | $ | 869 | $ | 2,891 | $ | 985 | 46% | 46% | ||||||||||||||||||||||||||||||
Provision for income taxes | 51 | — | 51 | 126 | 177 | 134 | 311 | 49 | (4)% | (4)% | ||||||||||||||||||||||||||||||||||||||
Net Earnings | $ | 623 | $ | 530 | $ | 1,153 | $ | 692 | $ | 1,845 | $ | 735 | $ | 2,580 | $ | 936 | 50% | 50% | ||||||||||||||||||||||||||||||
Net Earnings/(Loss) Attributable to Noncontrolling Interest | 14 | (6 | ) | 8 | — | 8 | 9 | 17 | (1 | ) | ** | ** | ||||||||||||||||||||||||||||||||||||
Net Earnings Attributable to BMS | $ | 609 | $ | 536 | $ | 1,145 | $ | 692 | $ | 1,837 | $ | 726 | $ | 2,563 | $ | 937 | 54% | 54% | ||||||||||||||||||||||||||||||
Earnings attributable to unvested restricted shares | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Net Earnings used for Diluted EPS Calculation | $ | 609 | $ | 536 | $ | 1,145 | $ | 692 | $ | 1,837 | $ | 726 | $ | 2,563 | $ | 937 | 54% | 54% | ||||||||||||||||||||||||||||||
Diluted Earnings per Common Share* | $ | 0.37 | $ | 0.32 | $ | 0.69 | $ | 0.42 | $ | 1.11 | $ | 0.44 | $ | 1.54 | $ | 0.56 | 51% | 51% | ||||||||||||||||||||||||||||||
Average Common Shares Outstanding - Diluted | 1,655 | 1,660 | 1,658 | 1,662 | 1,659 | 1,666 | 1,662 | 1,666 | 1% | 1% | ||||||||||||||||||||||||||||||||||||||
Dividends declared per common share | $ | 0.35 | $ | 0.35 | $ | 0.70 | $ | 0.35 | $ | 1.05 | $ | 0.36 | $ | 1.41 | $ | 0.36 | 3% | 3% | ||||||||||||||||||||||||||||||
2013 | 2014 | |||||||||||||||||||||||||||||||||||||||||||||||
% of Total Revenues | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | ||||||||||||||||||||||||||||||||||
Gross Margin | 72.3 | % | 72.6 | % | 72.4 | % | 71.1 | % | 72.0 | % | 71.3 | % | 71.8 | % | 74.6 | % | ||||||||||||||||||||||||||||||||
Other Ratios | ||||||||||||||||||||||||||||||||||||||||||||||||
Effective tax rate | 7.6 | % | — | 4.2 | % | 15.4 | % | 8.8 | % | 15.4 | % | 10.8 | % | 5.0 | % | |||||||||||||||||||||||||||||||||
Other (Income)/Expense | 2013 | 2014 | % Change | |||||||||||||||||||||||||||||||||||||||||||||
1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | Qtr vs. Qtr | YTD vs. YTD | |||||||||||||||||||||||||||||||||
Interest expense | $ | 50 | $ | 50 | $ | 100 | $ | 46 | $ | 146 | $ | 53 | $ | 199 | $ | 54 | 8% | 8% | ||||||||||||||||||||||||||||||
Investment income | (25 | ) | (28 | ) | (53 | ) | (23 | ) | (76 | ) | (28 | ) | (104 | ) | (23 | ) | (8)% | (8)% | ||||||||||||||||||||||||||||||
Provision for restructuring | 33 | 173 | 206 | 6 | 212 | 14 | 226 | 21 | (36)% | (36)% | ||||||||||||||||||||||||||||||||||||||
Litigation charges/(recoveries) | — | (22 | ) | (22 | ) | 17 | (5 | ) | 25 | 20 | 29 | N/A | N/A | |||||||||||||||||||||||||||||||||||
Equity in net income of affiliates | (36 | ) | (50 | ) | (86 | ) | (42 | ) | (128 | ) | (38 | ) | (166 | ) | (36 | ) | — | — | ||||||||||||||||||||||||||||||
Gain on sale of product lines, businesses and assets | (1 | ) | — | (1 | ) | — | (1 | ) | (1 | ) | (2 | ) | (259 | ) | ** | ** | ||||||||||||||||||||||||||||||||
Other alliance and licensing income | (57 | ) | (32 | ) | (89 | ) | (31 | ) | (120 | ) | (28 | ) | (148 | ) | (108 | ) | 89% | 89% | ||||||||||||||||||||||||||||||
Pension curtailments, settlements and special termination benefits | — | 101 | 101 | 37 | 138 | 27 | 165 | 64 | N/A | N/A | ||||||||||||||||||||||||||||||||||||||
Other | 17 | 7 | 24 | (5 | ) | 19 | (4 | ) | 15 | 50 | ** | ** | ||||||||||||||||||||||||||||||||||||
$ | (19 | ) | $ | 199 | $ | 180 | $ | 5 | $ | 185 | $ | 20 | $ | 205 | $ | (208 | ) | ** | ** |
* Quarterly amounts may not add to the year-to-date totals due to rounding of individual calculations. |
** In excess of 100% |
2014 | 2013 | Growth $ | Growth % | Favorable / (Unfavorable) FX Impact $ * | 2014 Excluding FX | Favorable / (Unfavorable) FX Impact % * | Growth % Excluding FX | |||||||||||||||||||||
Revenues | $ | 3,811 | $ | 3,831 | (20 | ) | (1 | )% | $ | (27 | ) | $ | 3,838 | (1 | )% | — | ||||||||||||
Gross profit | 2,843 | 2,768 | 75 | 3 | % | N/A | N/A | N/A | N/A | |||||||||||||||||||
Gross profit excluding specified items (a) | 2,888 | 2,853 | 35 | 1 | % | N/A | N/A | N/A | N/A | |||||||||||||||||||
Gross profit excluding specified items as a % of revenues | 75.8 | % | 74.5 | % | ||||||||||||||||||||||||
Marketing, selling and administrative | 957 | 994 | (37 | ) | (4 | )% | 9 | 966 | 1 | % | (3 | )% | ||||||||||||||||
Marketing, selling and administrative excluding specified items (a) | 954 | 993 | (39 | ) | (4 | )% | 9 | 963 | 1 | % | (3 | )% | ||||||||||||||||
Advertising and product promotion | 163 | 189 | (26 | ) | (14 | )% | 1 | 164 | 1 | % | (13 | )% | ||||||||||||||||
SG&A excluding specified items as a % of revenues | 29.3 | % | 30.9 | % | ||||||||||||||||||||||||
Research and development | 946 | 930 | 16 | 2 | % | 1 | 947 | — | 2 | % | ||||||||||||||||||
Research and development excluding specified items (a) | 898 | 930 | (32 | ) | (3 | )% | 1 | 899 | — | (3 | )% | |||||||||||||||||
Research and development excluding specified items as a % of revenues | 23.6 | % | 24.3 | % |
(a) Refer to the Specified Items schedule for further details. | |||
* Foreign exchange (FX) impact determined by the change in a line item's current and prior period results at a common exchange rate and comparing this change to the actual reported change from the same period. This difference is determined to be the FX impact. |
2013 | 2014 | Growth $ | % Change | EX-FX | FX Impact | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | Qtr vs. Qtr | YTD vs. YTD | Qtr vs. Qtr | YTD vs. YTD | QTD EX-FX $ | YTD EX-FX $ | Qtr vs. Qtr % | YTD vs. YTD % | Qtr vs. Qtr | YTD vs. YTD | |||||||||||||||||||||||||||||||||||||||||||||||||
TOTAL | $ | 3,831 | $ | 4,048 | $ | 7,879 | $ | 4,065 | $ | 11,944 | $ | 4,441 | $ | 16,385 | $ | 3,811 | $ | (20 | ) | $ | (20 | ) | (1)% | (1)% | $ | 3,838 | $ | 3,838 | — | — | (1)% | (1)% | ||||||||||||||||||||||||||||||||||||||||
Virology (a) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Baraclude | 366 | 371 | 737 | 378 | 1,115 | 412 | 1,527 | 406 | 40 | 40 | 11% | 11% | 412 | 412 | 13% | 13% | (2)% | (2)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reyataz | 361 | 431 | 792 | 375 | 1,167 | 384 | 1,551 | 344 | (17 | ) | (17 | ) | (5)% | (5)% | 348 | 348 | (4)% | (4)% | (1)% | (1)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Sustiva Franchise (b) | 387 | 411 | 798 | 389 | 1,187 | 427 | 1,614 | 319 | (68 | ) | (68 | ) | (18)% | (18)% | 316 | 316 | (18)% | (18)% | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Oncology (a) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Erbitux | 162 | 171 | 333 | 183 | 516 | 180 | 696 | 169 | 7 | 7 | 4% | 4% | 169 | 169 | 4% | 4% | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sprycel | 287 | 312 | 599 | 316 | 915 | 365 | 1,280 | 342 | 55 | 55 | 19% | 19% | 351 | 351 | 22% | 22% | (3)% | (3)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Yervoy | 229 | 233 | 462 | 238 | 700 | 260 | 960 | 271 | 42 | 42 | 18% | 18% | 270 | 270 | 18% | 18% | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Neuroscience (a) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Abilify (c) | 522 | 563 | 1,085 | 569 | 1,654 | 635 | 2,289 | 540 | 18 | 18 | 3% | 3% | 538 | 538 | 3% | 3% | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Immunoscience (a) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Orencia (d) | 320 | 352 | 672 | 375 | 1,047 | 397 | 1,444 | 363 | 43 | 43 | 13% | 13% | 370 | 370 | 16% | 16% | (3)% | (3)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cardiovascular (a) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Eliquis | 22 | 12 | 34 | 41 | 75 | 71 | 146 | 106 | 84 | 84 | ** | ** | 107 | 107 | ** | ** | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Diabetes Alliance (e) | 358 | 438 | 796 | 432 | 1,228 | 455 | 1,683 | 179 | (179 | ) | (179 | ) | (50)% | (50)% | 179 | 179 | (50)% | (50)% | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Mature Products and All Other (f) | 817 | 754 | 1,571 | 769 | 2,340 | 855 | 3,195 | 772 | (45 | ) | (45 | ) | (6)% | (6)% | 778 | 778 | (5)% | (5)% | (1)% | (1)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Excluding Diabetes Alliance | 3,473 | 3,610 | 7,083 | 3,633 | 10,716 | 3,986 | 14,702 | 3,632 | 159 | 159 | 5% | 5% | 3,659 | 3,659 | 5% | 5% | — | — |
** | In excess of 100% |
(a) | Key products listed do not represent all products in the respective therapeutic areas. |
(b) | The Sustiva Franchise includes sales of Sustiva and revenue from sales of bulk efavirenz included in the combination therapy, Atripla. Includes alliance and other revenues of $272M and $324M for the three months ended March 31, 2014 and March 31, 2013, respectively. |
(c) | Includes revenue from the co-promotional agreement with Otsuka Pharmaceutical Co., Ltd. Includes alliance and other revenue of $441M and $395M for the three months ended March 31, 2014 and March 31, 2013, respectively. |
(d) | Includes Orencia SubQ revenues of $136M and $84M for the three months ended March 31, 2014 and March 31, 2013, respectively. |
(e) | The three months ended March 31, 2013 includes pre-divestiture revenues of Bydureon, Byetta, Farxiga/Forxiga/Xigduo, Onglyza/Kombiglyze, Symlin and Myalept of $153M and post-divestiture revenues of $26M. |
(f) | Represents all other products, including those which have lost exclusivity in major markets, over the counter brands and royalty-related revenue. Includes Plavix revenues of $48M and $91M and Avapro/Avalide revenues of $56M and $46M for the three months ended March 31, 2014 and March 31, 2013, respectively. |
2013 | 2014 | % Change | ||||||||||||||||||||||||||||||||||||||||||||||
1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | Qtr vs. Qtr | YTD vs. YTD | |||||||||||||||||||||||||||||||||
TOTAL (a) | $ | 1,971 | $ | 2,045 | $ | 4,016 | $ | 2,037 | $ | 6,053 | $ | 2,265 | $ | 8,318 | $ | 1,765 | (10)% | (10)% | ||||||||||||||||||||||||||||||
Virology | ||||||||||||||||||||||||||||||||||||||||||||||||
Baraclude | 68 | 73 | 141 | 67 | 208 | 81 | 289 | 70 | 3% | 3% | ||||||||||||||||||||||||||||||||||||||
Reyataz | 193 | 200 | 393 | 189 | 582 | 187 | 769 | 176 | (9)% | (9)% | ||||||||||||||||||||||||||||||||||||||
Sustiva Franchise (b) | 251 | 275 | 526 | 259 | 785 | 307 | 1,092 | 228 | (9)% | (9)% | ||||||||||||||||||||||||||||||||||||||
Oncology | ||||||||||||||||||||||||||||||||||||||||||||||||
Erbitux | 158 | 168 | 326 | 180 | 506 | 176 | 682 | 158 | — | — | ||||||||||||||||||||||||||||||||||||||
Sprycel | 115 | 135 | 250 | 134 | 384 | 157 | 541 | 145 | 26% | 26% | ||||||||||||||||||||||||||||||||||||||
Yervoy (c) | 159 | 140 | 299 | 130 | 429 | 148 | 577 | 146 | (8)% | (8)% | ||||||||||||||||||||||||||||||||||||||
Neuroscience | ||||||||||||||||||||||||||||||||||||||||||||||||
Abilify | 328 | 378 | 706 | 378 | 1,084 | 435 | 1,519 | 325 | (1)% | (1)% | ||||||||||||||||||||||||||||||||||||||
Immunoscience | ||||||||||||||||||||||||||||||||||||||||||||||||
Orencia (d) | 214 | 238 | 452 | 246 | 698 | 256 | 954 | 229 | 7% | 7% | ||||||||||||||||||||||||||||||||||||||
Cardiovascular | ||||||||||||||||||||||||||||||||||||||||||||||||
Eliquis | 17 | 5 | 22 | 27 | 49 | 48 | 97 | 61 | ** | ** | ||||||||||||||||||||||||||||||||||||||
Diabetes Alliance (e) | 292 | 320 | 612 | 308 | 920 | 322 | 1,242 | 114 | (61)% | (61)% | ||||||||||||||||||||||||||||||||||||||
Mature Products and All Other (f) | 176 | 113 | 289 | 119 | 408 | 148 | 556 | 113 | (36)% | (36)% | ||||||||||||||||||||||||||||||||||||||
Total Excluding Diabetes Alliance | 1,679 | 1,725 | 3,404 | 1,729 | 5,133 | 1,943 | 7,076 | 1,651 | (2)% | (2)% |
** | In excess of 100% |
(a) | Domestic revenues include United States and Puerto Rico. |
(b) | The Sustiva Franchise includes sales of Sustiva, as well as revenue from sales of bulk efavirenz included in the combination therapy, Atripla. |
(c) | Three months ended March 31, 2013 includes $25 million of net sales that were previously deferred until sufficient historical experience to estimate sales returns was developed. The following table provides a reconciliation of the net impact of reversal of previously deferred net sales. |
2014 | 2013 | % Change | |||||||||
1st Qtr | 1st Qtr | Qtr vs. Qtr | |||||||||
Yervoy Revenues As Reported | 146 | 159 | (8 | )% | |||||||
Reversal of deferred revenues, net | — | (25 | ) | N/A | |||||||
Yervoy Revenues - Adjusted | 146 | 134 | 9 | % |
(d) | Includes Orencia SubQ revenues of $94M and $70M for the three months ended March 31, 2014 and March 31, 2013, respectively. |
(e) | Includes Bydureon, Byetta, Farxiga, Onglyza/Kombiglyze and Symlin. |
(f) | Represents all other products sold in the U.S., including those which have lost exclusivity in major markets. |
2013 | 2014 | % Change | FX Impact | |||||||||||||||||||||||||||||||||||||||||||||||||
1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | Qtr vs. Qtr | YTD vs. YTD | Qtr vs. Qtr | YTD vs. YTD | |||||||||||||||||||||||||||||||||||
TOTAL | $ | 1,860 | $ | 2,003 | $ | 3,863 | $ | 2,028 | $ | 5,891 | $ | 2,176 | $ | 8,067 | $ | 2,046 | 10% | 10% | (1)% | (1)% | ||||||||||||||||||||||||||||||||
Virology | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Baraclude | 298 | 298 | 596 | 311 | 907 | 331 | 1,238 | 336 | 13% | 13% | (2)% | (2)% | ||||||||||||||||||||||||||||||||||||||||
Reyataz | 168 | 231 | 399 | 186 | 585 | 197 | 782 | 168 | — | — | (2)% | (2)% | ||||||||||||||||||||||||||||||||||||||||
Sustiva Franchise (a) | 136 | 136 | 272 | 130 | 402 | 120 | 522 | 91 | (33)% | (33)% | 2% | 2% | ||||||||||||||||||||||||||||||||||||||||
Oncology | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Erbitux | 4 | 3 | 7 | 3 | 10 | 4 | 14 | 11 | ** | ** | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||
Sprycel | 172 | 177 | 349 | 182 | 531 | 208 | 739 | 197 | 15% | 15% | (5)% | (5)% | ||||||||||||||||||||||||||||||||||||||||
Yervoy | 70 | 93 | 163 | 108 | 271 | 112 | 383 | 125 | 79% | 79% | (1)% | (1)% | ||||||||||||||||||||||||||||||||||||||||
Neuroscience | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Abilify (b) | 194 | 185 | 379 | 191 | 570 | 200 | 770 | 215 | 11% | 11% | 1% | 1% | ||||||||||||||||||||||||||||||||||||||||
Immunoscience | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Orencia | 106 | 114 | 220 | 129 | 349 | 141 | 490 | 134 | 26% | 26% | (7)% | (7)% | ||||||||||||||||||||||||||||||||||||||||
Cardiovascular | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Eliquis | 5 | 7 | 12 | 14 | 26 | 23 | 49 | 45 | ** | ** | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||
Diabetes Alliance (c) | 66 | 118 | 184 | 124 | 308 | 133 | 441 | 65 | (2)% | (2)% | — | — | ||||||||||||||||||||||||||||||||||||||||
Mature Products and All Other (d) | 641 | 641 | 1,282 | 650 | 1,932 | 707 | 2,639 | 659 | 3% | 3% | (1)% | (1)% | ||||||||||||||||||||||||||||||||||||||||
Total Excluding Diabetes Alliance | 1,794 | 1,885 | 3,679 | 1,904 | 5,583 | 2,043 | 7,626 | 1,981 | 10% | 10% | (2)% | (2)% |
** | In excess of 100% |
(a) | The Sustiva Franchise includes sales of Sustiva and revenue from sales of bulk efavirenz included in the combination therapy, Atripla. |
(b) | Includes revenue from the co-promotional agreement with Otsuka Pharmaceutical Co., Ltd. |
(c) | Includes Bydureon, Byetta, Forxiga/Xigduo, Onglyza/Kombiglyze, Symlin and Myalept. |
(d) | Represents all other products, including those which have lost exclusivity in major markets, over the counter brands and royalty-related revenue. |
2013 | 2014 | |||||||||||||||||||||||||||||||||||||||||||
1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | |||||||||||||||||||||||||||||||
Gross Profit | $ | 2,768 | $ | 2,940 | $ | 5,708 | $ | 2,890 | $ | 8,598 | $ | 3,168 | $ | 11,766 | $ | 2,843 | ||||||||||||||||||||||||||||
Specified items (a) | 85 | 70 | 155 | 69 | 224 | 102 | 326 | 45 | ||||||||||||||||||||||||||||||||||||
Gross profit excluding specified items | 2,853 | 3,010 | 5,863 | 2,959 | 8,822 | 3,270 | 12,092 | 2,888 | ||||||||||||||||||||||||||||||||||||
Marketing, selling and administrative | 994 | 1,042 | 2,036 | 980 | 3,016 | 1,068 | 4,084 | 957 | ||||||||||||||||||||||||||||||||||||
Specified items (a) | (1 | ) | (1 | ) | (2 | ) | (4 | ) | (6 | ) | (10 | ) | (16 | ) | (3 | ) | ||||||||||||||||||||||||||||
Marketing, selling and administrative excluding specified items | 993 | 1,041 | 2,034 | 976 | 3,010 | 1,058 | 4,068 | 954 | ||||||||||||||||||||||||||||||||||||
Research and development | 930 | 951 | 1,881 | 893 | 2,774 | 957 | 3,731 | 946 | ||||||||||||||||||||||||||||||||||||
Specified items (a) | — | — | — | — | — | (16 | ) | (16 | ) | (48 | ) | |||||||||||||||||||||||||||||||||
Research and development excluding specified items | 930 | 951 | 1,881 | 893 | 2,774 | 941 | 3,715 | 898 | ||||||||||||||||||||||||||||||||||||
Other (income)/expense | (19 | ) | 199 | 180 | 5 | 185 | 20 | 205 | (208 | ) | ||||||||||||||||||||||||||||||||||
Specified items (a) | (19 | ) | (239 | ) | (258 | ) | (43 | ) | (301 | ) | (39 | ) | (340 | ) | 88 | |||||||||||||||||||||||||||||
Other (income)/expense excluding specified items | (38 | ) | (40 | ) | (78 | ) | (38 | ) | (116 | ) | (19 | ) | (135 | ) | (120 | ) | ||||||||||||||||||||||||||||
Effective Tax Rate | 7.6 | % | — | 4.2 | % | 15.4 | % | 8.8 | % | 15.4 | % | 10.8 | % | 5.0 | % | |||||||||||||||||||||||||||||
Specified items (a) | 3.4 | % | 13.8 | % | 8.3 | % | 2.4 | % | 5.6 | % | 2.5 | % | 4.6 | % | 18.0 | % | ||||||||||||||||||||||||||||
Effective Tax Rate excluding specified items | 11.0 | % | 13.8 | % | 12.5 | % | 17.8 | % | 14.4 | % | 17.9 | % | 15.4 | % | 23.0 | % |
(a) Refer to the Specified Items schedule for further details. Effective tax rate on the Specified Items represents the difference between the GAAP and Non-GAAP effective tax rate. |
2013 | 2014 | |||||||||||||||||||||||||||||||||||||||||||
1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | |||||||||||||||||||||||||||||||
Accelerated depreciation, asset impairment and other shutdown costs | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 36 | $ | 36 | $ | 45 | ||||||||||||||||||||||||||||
Amortization of acquired Amylin intangible assets | 138 | 137 | 275 | 137 | 412 | 137 | 549 | — | ||||||||||||||||||||||||||||||||||||
Amortization of Amylin collaboration proceeds | (67 | ) | (67 | ) | (134 | ) | (68 | ) | (202 | ) | (71 | ) | (273 | ) | — | |||||||||||||||||||||||||||||
Amortization of Amylin inventory adjustment | 14 | — | 14 | — | 14 | — | 14 | — | ||||||||||||||||||||||||||||||||||||
Cost of products sold | 85 | 70 | 155 | 69 | 224 | 102 | 326 | 45 | ||||||||||||||||||||||||||||||||||||
Marketing, selling and administrative* | 1 | 1 | 2 | 4 | 6 | 10 | 16 | 3 | ||||||||||||||||||||||||||||||||||||
Upfront, milestone and other licensing payments | — | — | — | — | — | 16 | 16 | 15 | ||||||||||||||||||||||||||||||||||||
IPRD impairment | — | — | — | — | — | — | — | 33 | ||||||||||||||||||||||||||||||||||||
Research and development | — | — | — | — | — | 16 | 16 | 48 | ||||||||||||||||||||||||||||||||||||
Provision for restructuring | 33 | 173 | 206 | 6 | 212 | 14 | 226 | 21 | ||||||||||||||||||||||||||||||||||||
Gain on sale of product lines, businesses and assets | — | — | — | — | — | — | — | (259 | ) | |||||||||||||||||||||||||||||||||||
Acquisition and alliance related items | — | (10 | ) | (10 | ) | — | (10 | ) | — | (10 | ) | 16 | ||||||||||||||||||||||||||||||||
Litigation charges/(recoveries) | — | (23 | ) | (23 | ) | — | (23 | ) | — | (23 | ) | 25 | ||||||||||||||||||||||||||||||||
Loss on debt redemption | — | — | — | — | — | — | — | 45 | ||||||||||||||||||||||||||||||||||||
Upfront, milestone and other licensing receipts | (14 | ) | — | (14 | ) | — | (14 | ) | — | (14 | ) | — | ||||||||||||||||||||||||||||||||
Pension curtailments, settlements and special termination benefits | — | 99 | 99 | 37 | 136 | 25 | 161 | 64 | ||||||||||||||||||||||||||||||||||||
Other (income)/expense | 19 | 239 | 258 | 43 | 301 | 39 | 340 | (88 | ) | |||||||||||||||||||||||||||||||||||
Increase/(decrease) to pretax income | 105 | 310 | 415 | 116 | 531 | 167 | 698 | 8 | ||||||||||||||||||||||||||||||||||||
Income tax on items above | (35 | ) | (116 | ) | (151 | ) | (40 | ) | (191 | ) | (51 | ) | (242 | ) | (179 | ) | ||||||||||||||||||||||||||||
Increase/(decrease) to net earnings | $ | 70 | $ | 194 | $ | 264 | $ | 76 | $ | 340 | $ | 116 | $ | 456 | $ | (171 | ) |
* Specified items in marketing, selling and administrative are process standardization implementation costs. |
March 31, 2013 | June 30, 2013 | September 30, 2013 | December 31, 2013 | March 31, 2014 | June 30, 2014 | September 30, 2014 | December 31, 2014 | |||||||||||||||||||
Cash and cash equivalents | $ | 1,355 | $ | 1,821 | $ | 1,771 | $ | 3,586 | $ | 5,225 | ||||||||||||||||
Marketable securities - current | 1,178 | 978 | 951 | 939 | 1,834 | |||||||||||||||||||||
Marketable securities - long term | 3,242 | 3,223 | 3,623 | 3,747 | 3,558 | |||||||||||||||||||||
Cash, cash equivalents and marketable securities | 5,775 | 6,022 | 6,345 | 8,272 | 10,617 | |||||||||||||||||||||
Short-term borrowings and current portion of long-term debt | (1,372 | ) | (764 | ) | (680 | ) | (359 | ) | (281 | ) | ||||||||||||||||
Long-term debt | (6,522 | ) | (6,442 | ) | (6,532 | ) | (7,981 | ) | (7,367 | ) | ||||||||||||||||
Net cash/(debt) position | $ | (2,119 | ) | $ | (1,184 | ) | $ | (867 | ) | $ | (68 | ) | $ | 2,969 |
Full Year 2014 | ||
Projected Diluted Earnings Attributable to Shareholders per Common Share - GAAP | $1.70 to $1.80 | |
Projected Specified Items: | ||
Downsizing and streamlining of worldwide operations | 0.08 | |
Upfront and milestone payments, net | 0.12 | |
Gain on diabetes business divestiture and other related impacts | (0.31 | ) |
Pension settlements | 0.04 | |
Other | 0.07 | |
Total | — | |
Projected Diluted Earnings Attributable to Shareholders per Common Share - Non-GAAP | $1.70 to $1.80 |
Gross margin as a percentage of revenues on a GAAP and non-GAAP basis for the three months ended March 31, 2014 was 74.6% and 75.8%, respectively. On a non-GAAP basis, the Company projects gross margin as a percentage of revenues for the full year 2014 between 75% and 76%. There is no reliable comparable GAAP measure for this forward-looking information on gross margin. See "—Reconciliation of GAAP and NON-GAAP Growth Dollars and Percentages Excluding Foreign Exchange Impact". | |||||||||
Research and development expenses on a GAAP and non-GAAP basis for the three months ended March 31, 2014 were $946 million and $898 million, respectively . On a non-GAAP basis, the Company projects research and development expense for the full year 2014 to grow in the mid single digit range compared to 2013. It is estimated that 30% to 45% of the research and development expenses in 2014 will be incurred on late-stage development programs. There is no reliable comparable GAAP measure for this forward-looking information on research and development. See "—Reconciliation of Certain NON-GAAP Line Items to Certain GAAP Line Items". | |||||||||
Marketing, selling and administrative expenses, on a GAAP and non-GAAP basis for the three months ended March 31, 2014 were $957 million and $954 million, respectively. On a non-GAAP basis, the Company projects marketing, selling and administrative expenses for the full year 2014 to decrease in the mid single digit range compared to 2013. There is no reliable comparable GAAP measure for this forward-looking information on marketing, selling and administrative expense. See "—Reconciliation of Certain NON-GAAP Line Items to Certain GAAP Line Items". | |||||||||
The effective tax rate on a GAAP basis for the three months ended March 31, 2014 was 5.0%. On a non-GAAP basis, for the three months ended March 31, 2014 the effective tax rate was 23.0%. On a non-GAAP basis, the Company projects an annual effective tax rate of approximately 18%. There is no reliable comparable GAAP measure for this forward-looking information on the tax rate. See "—Reconciliation of Certain NON-GAAP Line Items to Certain GAAP Line Items". | |||||||||
The GAAP financial results for the full year 2014 will include specified items, including gains on divestitures, expected charges associated with downsizing and streamlining worldwide operations, impairment charges, milestone payments, restructuring and pension settlements. The GAAP financial results for the full year 2014 could also include other specified items that have not yet been identified and quantified, including any gains or losses from acquisitions or divestitures, additional upfront, milestone and other licensing payments, charges for in-process research and development and licensed asset impairments, charges and recoveries relating to significant legal proceedings, restructuring activities and significant tax events. For a fuller discussion of certain litigation and other matters that could impact full year GAAP results, as well as the use of non-GAAP financial information, see Bristol-Myers Squibb Reports First Quarter 2014 Financial Results, April 29, 2014 including “2014 Financial Guidance” and “Use of Non-GAAP Financial Information” therein. | |||||||||
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