8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act Of 1934

Date of Report (Date of earliest event reported): October 24, 2014

BRISTOL-MYERS SQUIBB COMPANY

(Exact Name of Registrant as Specified in its Charter)

Delaware	1-1136	22-0790350
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification Number)

345 Park Avenue

New York, NY 10154

(Address of Principal Executive Office)

Registrant’s telephone number, including area code: (212) 546-4000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ 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.

On October 24, 2014, Bristol-Myers Squibb Company (the “Company”) issued a press release announcing its financial results for the third quarter of 2014. A copy of the press release is furnished as Exhibit 99.1 to this report and incorporated herein by reference. Also furnished and incorporated by reference as Exhibit 99.2 is certain supplemental information posted on the Company’s website at www.bms.com.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

99.1	Press release of Bristol-Myers Squibb Company dated October 24, 2014.
99.2	Certain supplemental information posted on Bristol-Myers Squibb Company’s website at www.bms.com not included in the press release.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	BRISTOL-MYERS SQUIBB COMPANY
Dated: October 24, 2014	By:	/s/ Sandra Leung
	Name:	Sandra Leung
	Title:	General Counsel and Corporate Secretary

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press release of Bristol-Myers Squibb Company dated October 24, 2014.
99.2	Certain supplemental information posted on Bristol-Myers Squibb Company’s website at www.bms.com not included in the press release.

EX-99.1

Exhibit 99.1

Bristol-Myers Squibb Reports Third Quarter 2014 Financial Results

• Posts Third Quarter GAAP EPS of $0.43 and Non-GAAP EPS of $0.45

• Achieves Significant Regulatory Milestones for PD-1 Inhibitor Opdivo

• Launches Daklinza-Based Regimens for HCV Patients in Japan and Europe

• Adjusts 2014 GAAP EPS Guidance Range to $1.15 - $1.25 and Confirms Non-GAAP EPS Guidance Range of $1.70 - $1.80

NEW YORK (October 24, 2014) - Bristol-Myers Squibb Company(NYSE:BMY) today reported strong financial results for the third quarter of 2014, adjusted 2014 GAAP guidance and confirmed 2014 non-GAAP guidance. The quarter was highlighted by strong performance by key brands, significant data and regulatory milestones for Opdivo, the launch of the company’s hepatitis C regimens in Japan and Europe and the completion of several business development transactions supporting the company’s oncology portfolio.

“Our financial results in the third quarter reflect our continued focus on balancing long-term growth with short-term performance, as we achieved significant progress in our pipeline and saw strong in-market performance for key products including Eliquis,Yervoy, Sprycel and Orencia,” said Lamberto Andreotti, chief executive officer, Bristol-Myers Squibb. “We continue to build a solid foundation for our future as a Diversified Specialty BioPharma by advancing our own R&D efforts and investing in strategic business development to build a sustainable pipeline.”

	Third Quarter
$ amounts in millions, except per share amounts
	2014		2013		Change
Total Revenues	$	3,921	$	4,065	(4	)%
GAAP Diluted EPS	0.43		0.42		2	%
Non-GAAP Diluted EPS	0.45		0.46		(2	)%

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THIRD QUARTER FINANCIAL RESULTS

• Bristol-Myers Squibb posted third quarter 2014 revenues of $3.9 billion, a decrease of 4% compared to the same period a year ago. Excluding the divested Diabetes Alliance, global revenues increased 7%.

• U.S. revenues decreased 3% to $2.0 billion in the quarter compared to the same period a year ago. International revenues decreased 4%.

• Gross margin as a percentage of revenues was 74.3% in the quarter compared to 71.1% in the same period a year ago.

• Marketing, selling and administrative expenses increased 5% to $1.0 billion in the quarter.

• Advertising and product promotion spending decreased 12% to $171 million in the quarter.

• Research and development expenses increased 10% to $983 million in the quarter.

• The effective tax rate on earnings before income taxes was 27.4% in the quarter, compared to 15.4% in the third quarter last year.

• The company reported net earnings attributable to Bristol-Myers Squibb of $721 million, or $0.43 per share, in the quarter compared to $692 million, or $0.42 per share, a year ago.

• The company reported non-GAAP net earnings attributable to Bristol-Myers Squibb of $750 million, or $0.45 per share, in the third quarter, compared to $768 million, or $0.46 per share, for the same period in 2013. Among other specified items, the non-GAAP earnings in the current period exclude a $0.07 per share impact of additional charges related to the Branded Prescription Drug Fee resulting from the issuance of final rules by the IRS. An overview of specified items is discussed under the “Use of Non-GAAP Financial Information” section.

• Cash, cash equivalents and marketable securities were $11.5 billion, with a net cash position of $3.9 billion, as of September 30, 2014.

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THIRD QUARTER PRODUCT AND PIPELINE UPDATE

Bristol-Myers Squibb’s global sales in the third quarter included Eliquis, which grew by $175 million, Yervoy, which grew 47%, Sprycel, which grew 22%, Orencia, which grew 18%, and Daklinza and Sunvepra, which had combined sales of $49 million.

Opdivo

• In September, the company announced multiple regulatory milestones for Opdivo (nivolumab), an investigational PD-1 immune checkpoint inhibitor, in the U.S. and European Union (EU): 

◦ In the U.S., the Food and Drug Administration (FDA) has accepted for priority review the Biologics License Application for previously treated advanced melanoma and set a Prescription Drug User Fee Act decision goal date of March 30, 2015. The FDA granted Opdivo Breakthrough Therapy designation for this indication. Bristol-Myers Squibb has proposed the name Opdivo, which, if approved by health authorities, will serve as the trademark for nivolumab.  

◦ In the EU, the European Medicines Agency (EMA) has validated for review the Marketing Authorization Applications for nivolumab in non-small cell lung cancer - the first completed regulatory submission for a PD-1 immune checkpoint inhibitor in this tumor type - and in advanced melanoma. The application for advanced melanoma was granted accelerated assessment by the EMA’s Committee for Medicinal Products for Human Use.

• Also in September, at the European Society for Medical Oncology Congress in Madrid, the company announced positive results from CheckMate -037, a Phase III randomized, controlled open-label study of Opdivo versus investigator’s choice chemotherapy (ICC) in patients with advanced melanoma who were previously treated with Yervoy. Based on a planned interim analysis of the co-primary endpoint, the objective response rate was 32% (95% CI = 24, 41) in the Opdivo arm (n=120) and 11% (95% CI = 4, 23) in the ICC reference arm (n=47) in patients with at least six months of follow up. The majority (95%) of responses were ongoing in the Opdivo arm and the median duration of response was not reached.

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Eliquis

• In August, the company and its partner, Pfizer, announced that the FDA approved a Supplemental New Drug Application for Eliquis for the treatment of deep vein thrombosis (DVT) and pulmonary embolism (PE), and for the reduction in the risk of recurrent DVT and PE following initial therapy.

• In July, the company and its partner, Pfizer, announced that the European Commission (EC) approved Eliquis for the treatment of DVT and PE, and the prevention of DVT and PE in adults. The approval applies to all EU member states as well as Iceland and Norway.

• In August, at the European Society of Cardiology Congress in Barcelona, Spain, the company and its partner, Pfizer, announced results of a pre-specified secondary analysis of the Eliquis Phase III AMPLIFY-EXT trial. The analysis evaluated clinical and demographic predictors of all-cause hospitalization in patients with VTE. Results from this analysis demonstrated that during the 12-month extended treatment of VTE, Eliquis significantly reduced the risk of hospitalization versus placebo. This effect was independent of other variables including renal function, the only other significant predictor of hospitalization in the AMPLIFY-EXT population.

Daklinza

• In August, the company announced that the EC approved Daklinza (daclatasvir), a potent, pan-genotypic NS5A replication complex inhibitor (in vitro), for use in combination with other medicinal products across genotypes 1, 2, 3 and 4 for the treatment of chronic hepatitis C virus (HCV) infection in adults. The approval allows for the marketing of Daklinza in all 28 EU member states.

Asunaprevir

• In October, the company announced that it will not pursue FDA approval of the dual regimen of daclatasvir and asunaprevir for the treatment of HCV genotype 1b patients in the U.S. and has withdrawn its New Drug Application for asunaprevir, an NS3/4A protease inhibitor. The company will continue to pursue FDA approval for daclatasvir, which is currently being investigated globally in multiple treatment regimens for HCV patients with high unmet needs.

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Sustiva

• In October, the company announced that it has successfully resolved all outstanding U.S. patent litigation relating to efavirenz, an active ingredient contained in our Sustiva (efavirenz) and Atripla (efavirenz/emtricitabine/tenofovir disoproxil fumarate) products, and that loss of patent exclusivity in the U.S. for efavirenz is not expected to occur until December 2017.

THIRD QUARTER FINANCIAL UPDATE

In September, the company announced that it will settle $1.4 billion in pension obligations through the purchase of a group annuity contract from The Prudential Insurance Company of America (Prudential) for approximately 8,000 U.S. retirees and their beneficiaries who started receiving their monthly retirement benefit payments on or before June 1, 2014. The transaction reduces risk in the retirement plan and better manages the ongoing variations in cost associated with its maintenance while entrusting current retirees and their beneficiaries’ pensions to a financial institution with expertise in the long-term management of retirement benefits. The transaction with Prudential is expected to occur in December 2014 and is subject to satisfaction of closing conditions.

THIRD QUARTER BUSINESS DEVELOPMENT UPDATE

• In October, the company announced a clinical trial collaboration agreement with Janssen and Pharmacyclics to evaluate the safety, tolerability and preliminary efficacy of Opdivo in combination with Janssen and Pharmacyclics’ oral Bruton's tyrosine kinase inhibitor Imbruvica^® (ibrutinib) to treat patients with non-Hodgkin lymphoma.

• In October, the company and The University of Texas MD Anderson Cancer Center announced a clinical research collaboration to evaluate Yervoy, Opdivo and three early-stage clinical immuno-oncology assets as potential treatment options for acute and chronic leukemia as well as other hematologic malignancies.

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• In October, the company announced a clinical trial collaboration with Novartis to evaluate the safety, tolerability and preliminary efficacy of combining Opdivo with three molecularly targeted oncology therapies from Novartis - Zykadia^™ (ceritinib), INC280 and EGF816 - to treat non-small cell lung cancer.

• In August, the company and Celgene Corporation announced the establishment of a clinical trial collaboration to evaluate the safety, tolerability and preliminary efficacy of a combination regimen of Opdivo and Celgene’s nab^® technology-based chemotherapy Abraxane^® (paclitaxel protein-bound particles for injectable suspension) (albumin-bound) in a Phase I study. Multiple tumor types will be explored in the study.

• In August, the company and Allied Minds announced the formation of Allied-Bristol Life Sciences LLC, a new jointly owned enterprise created to identify and foster research and pre-clinical development of biopharmaceutical innovations from leading university research institutions across the U.S. The new enterprise will focus on converting discoveries from university research institutions into therapeutic candidates for clinical development and, ultimately, approved therapies that address serious diseases.

Abraxane^® and nab^® are trademarks of Abraxis BioScience LLC, a wholly owned subsidiary of Celgene Corporation.

Imbruvica^® is a trademark of Pharmacyclics, Inc.

Zykadia^™ is a trademark of Novartis AG.

2014 FINANCIAL GUIDANCE

Bristol-Myers Squibb is adjusting its 2014 GAAP EPS guidance range to $1.15 - $1.25 from $1.50 - $1.60 and confirming its non-GAAP EPS guidance range of $1.70 - $1.80. Both GAAP and non-GAAP guidance assume current exchange rates and that the R&D tax credit will be extended by Congress in 2014. Key 2014 non-GAAP guidance assumptions include:

•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.

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•Research and development expenses growing in the mid-single-digit range.

•An effective tax rate of 19% - 20%.

The financial guidance for 2014 excludes the impact of any potential future strategic acquisitions and divestitures, and any specified items that have not yet been identified and quantified. The non-GAAP 2014 guidance also excludes other specified items as discussed under “Use of Non-GAAP Financial Information.” Details reconciling adjusted non-GAAP amounts with the amounts reflecting specified items are provided in supplemental materials available on the company’s website.

Use of Non-GAAP Financial Information

This press release contains non-GAAP financial measures, including non-GAAP earnings and related earnings per share information. These measures are adjusted to exclude certain costs, expenses, significant gains and losses and other specified items. Among the items in GAAP measures but excluded for purposes of determining adjusted earnings and other adjusted measures are: restructuring and other exit costs; accelerated depreciation charges; IPRD and asset impairments; charges and recoveries relating to significant legal proceedings; upfront, milestone and other payments for in-licensing of products that have not achieved regulatory approval which are immediately expensed; net amortization of acquired intangible assets and deferred income related to Amylin; pension settlement charges; significant tax events and additional charges related to the Branded Prescription Drug Fee. This information is intended to enhance an investor’s overall understanding of the company’s past financial performance and prospects for the future. Non-GAAP financial measures provide the company and its investors with an indication of the company’s baseline performance before items that are considered by the company not to be reflective of the company’s ongoing results. The company uses non-GAAP gross profit, non-GAAP marketing, selling and administrative expense, non-GAAP research and development expense, and non-GAAP other income and expense measures to set internal budgets, manage costs, allocate resources, and plan and forecast future periods. Non-GAAP effective tax rate measures are primarily used to plan and forecast future periods. Non-GAAP earnings and earnings per share measures are primary indicators the company uses as a basis for evaluating company performance, setting incentive compensation targets, and planning and forecasting of future periods. This information is not intended to be considered in isolation or as a substitute for financial measures prepared in accordance with GAAP.

Statement on Cautionary Factors

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding, among other things, statements relating to goals, plans and projections regarding the company’s financial position, results of operations, market position, product development and business strategy. These statements may be identified by the fact that they use words such as "anticipate", "estimates", "should", "expect", "guidance", "project", "intend", "plan", "believe" and other words and terms of similar meaning in connection with any discussion of future operating or financial performance.

7

Such forward-looking statements are based on current expectations and involve inherent risks and uncertainties, including factors that could delay, divert or change any of them, and could cause actual outcomes and results to differ materially from current expectations. These factors include, among other things, effects of the continuing implementation of governmental laws and regulations related to Medicare, Medicaid, Medicaid managed care organizations and entities under the Public Health Service 340B program, pharmaceutical rebates and reimbursement, market factors, competitive product development and approvals, pricing controls and pressures (including changes in rules and practices of managed care groups and institutional and governmental purchasers), economic conditions such as interest rate and currency exchange rate fluctuations, judicial decisions, claims and concerns that may arise regarding the safety and efficacy of in-line products and product candidates, changes to wholesaler inventory levels, variability in data provided by third parties, changes in, and interpretation of, governmental regulations and legislation affecting domestic or foreign operations, including tax obligations, changes to business or tax planning strategies which take into account assumptions about the continued extension of the R&D tax credit, difficulties and delays in product development, manufacturing or sales including any potential future recalls, patent positions and the ultimate outcome of any litigation matter. These factors also include the company’s ability to execute successfully its strategic plans, including its business strategy, the expiration of patents or data protection on certain products, including assumptions about the company’s ability to retain patent exclusivity of certain products, and the impact and result of governmental investigations. There can be no guarantees with respect to pipeline products that future clinical studies will support the data described in this release, that the compounds will receive necessary regulatory approvals, or that they will prove to be commercially successful; nor are there guarantees that regulatory approvals will be sought, or sought within currently expected timeframes, or that contractual milestones will be achieved. For further details and a discussion of these and other risks and uncertainties, see the company's periodic reports, including the annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, filed with or furnished to the Securities and Exchange Commission. The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

Company and Conference Call Information

Bristol-Myers Squibb is a global biopharmaceutical company whose mission is to discover, develop and deliver innovative medicines that help patients prevail over serious diseases. For more information, please visit www.bms.com or follow us on Twitter at http://twitter.com/bmsnews.

There will be a conference call on October 24, 2014, at 10:30 a.m. EDT during which company executives will review financial information and address inquiries from investors and analysts. Investors and the general public are invited to listen to a live webcast of the call at http://investor.bms.comor by dialing 913-312-0964, confirmation code: 1193919. Materials related to the call will be available at the same website prior to the conference call.

For more information, contact: Laura Hortas, 609-252-4587, laura.hortas@bms.com, Communications; John Elicker, 609-252-4611, john.elicker@bms.com, Ranya Dajani, 609-252-5330, ranya.dajani@bms.com, or Ryan Asay, 609-252-5020, ryan.asay@bms.com, Investor Relations.

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BRISTOL-MYERS SQUIBB COMPANY

SELECTED PRODUCTS

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013

(Unaudited, dollars in millions)

	Worldwide Revenues						U.S. Revenues
	2014		2013		% Change		2014		2013		% Change
Three Months Ended September 30,
Key Products
Virology
Baraclude	$	325	$	378	(14	)%	$	40	$	67	(40	)%
Hepatitis C Franchise	49		—		N/A		—		—		N/A
Reyataz	338		375		(10	)%	169		189		(11	)%
Sustiva Franchise	357		389		(8	)%	284		259		10	%
Oncology
Erbitux(a)	187		183		2	%	175		180		(3	)%
Opdivo	1		—		N/A		—		—		N/A
Sprycel	385		316		22	%	179		134		34	%
Yervoy	350		238		47	%	191		130		47	%
Neuroscience
Abilify(b)	449		569		(21	)%	407		378		8	%
Immunoscience
Orencia	444		375		18	%	292		246		19	%
Cardiovascular
Eliquis	216		41		**		113		27		**
Diabetes Alliance	42		432		(90	)%	—		308		(100	)%
Mature Products and All Other	778		769		1	%	118		119		(1	)%
Total	3,921		4,065		(4	)%	1,968		2,037		(3	)%
Total Excluding Diabetes Alliance	3,879		3,633		7	%	1,968		1,729		14	%

**	In excess of 100%
(a)	Erbitux is a trademark of ImClone LLC. ImClone LLC is a wholly-owned subsidiary of Eli Lilly and Company.
(b)	Abilify is a trademark of Otsuka Pharmaceutical Co., Ltd.

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BRISTOL-MYERS SQUIBB COMPANY

SELECTED PRODUCTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013

(Unaudited, dollars in millions)

	Worldwide Revenues						U.S. Revenues
	2014		2013		% Change		2014		2013		% Change
Nine Months Ended September 30,
Key Products
Virology
Baraclude	$	1,100	$	1,115	(1	)%	$	194	$	208	(7	)%
Hepatitis C Franchise	49		—		N/A		—		—		N/A
Reyataz	1,044		1,167		(11	)%	513		582		(12	)%
Sustiva Franchise	1,037		1,187		(13	)%	778		785		(1	)%
Oncology
Erbitux	542		516		5	%	511		506		1	%
Opdivo	1		—		N/A		—		—		N/A
Sprycel	1,095		915		20	%	487		384		27	%
Yervoy	942		700		35	%	510		429		19	%
Neuroscience
Abilify	1,544		1,654		(7	)%	1,149		1,084		6	%
Immunoscience
Orencia	1,209		1,047		15	%	775		698		11	%
Cardiovascular
Eliquis	493		75		**		268		49		**
Diabetes Alliance	248		1,228		(80	)%	114		920		(88	)%
Mature Products and All Other	2,317		2,340		(1	)%	335		408		(18	)%
Total	11,621		11,944		(3	)%	5,634		6,053		(7	)%
Total Excluding Diabetes Alliance	11,373		10,716		6	%	5,520		5,133		8	%

** In excess of 100%

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BRISTOL-MYERS SQUIBB COMPANY

CONSOLIDATED STATEMENTS OF EARNINGS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013

(Unaudited, dollars and shares in millions except per share data)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Net product sales	$	2,843		$	3,025		$	8,420		$	9,006
Alliance and other revenues	1,078			1,040			3,201			2,938
Total Revenues	3,921			4,065			11,621			11,944
Cost of products sold	1,007			1,175			2,966			3,346
Marketing, selling and administrative	1,029			980			2,937			3,016
Advertising and product promotion	171			194			521			601
Research and development	983			893			3,345			2,774
Other (income)/expense	(277		)	5			(589		)	185
Total Expenses	2,913			3,247			9,180			9,922
Earnings Before Income Taxes	1,008			818			2,441			2,022
Provision for Income Taxes	276			126			439			177
Net Earnings	732			692			2,002			1,845
Net Earnings Attributable to Noncontrolling Interest	11			—			11			8
Net Earnings Attributable to BMS	$	721		$	692		$	1,991		$	1,837
Earnings per Common Share
Basic	$	0.43		$	0.42		$	1.20		$	1.12
Diluted	$	0.43		$	0.42		$	1.19		$	1.11
Average Common Shares Outstanding:
Basic	1,658			1,646			1,656			1,643
Diluted	1,670			1,662			1,668			1,659
Other (Income)/Expense
Interest expense	$	50		$	46		$	150		$	146
Investment income	(20		)	(23		)	(71		)	(76		)
Provision for restructuring	35			6			72			212
Litigation charges/(recoveries)	10			17			19			(5		)
Equity in net income of affiliates	(12		)	(42		)	(81		)	(128		)
Out-licensed intangible asset impairment	18			—			18			—
Gain on sale of product lines, businesses and assets	(315		)	—			(567		)	(1		)
Other alliance and licensing income	(102		)	(31		)	(354		)	(120		)
Pension curtailments, settlements and special termination benefits	28			37			137			138
Other	31			(5		)	88			19
Other (income)/expense	$	(277	)	$	5		$	(589	)	$	185

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BRISTOL-MYERS SQUIBB COMPANY

SPECIFIED ITEMS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013

(Unaudited, dollars in millions)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Accelerated depreciation, asset impairment and other shutdown costs	$	36		$	—		$	120		$	—
Amortization of acquired Amylin intangible assets	—			137			—			412
Amortization of Amylin alliance proceeds	—			(68		)	—			(202		)
Amortization of Amylin inventory adjustment	—			—			—			14
Cost of products sold	36			69			120			224
Additional year of Branded Prescription Drug Fee	96			—			96			—
Process standardization implementation costs	2			4			8			6
Marketing, selling and administrative	98			4			104			6
Upfront, milestone and other payments	65			—			228			—
IPRD impairments	—			—			343			—
Research and development	65			—			571			—
Provision for restructuring	35			6			72			212
Gain on sale of product lines, businesses and assets	(315		)	—			(562		)	—
Pension curtailments, settlements and special termination benefits	28			37			137			136
Acquisition and alliance related items(a)	39			—			72			(10		)
Litigation charges/(recoveries)	10			—			12			(23		)
Loss on debt redemption	—			—			45			—
Upfront, milestone and other licensing receipts	—			—			—			(14		)
Other (income)/expense	(203		)	43			(224		)	301
Increase/(decrease) to pretax income	(4		)	116			571			531
Income tax on items above	33			(40		)	(248		)	(191		)
Increase to net earnings	$	29		$	76		$	323		$	340

(a) Includes $16 million of additional year of Branded Prescription Drug Fee.

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BRISTOL-MYERS SQUIBB COMPANY

RECONCILIATION OF CERTAIN NON-GAAP LINE ITEMS TO CERTAIN GAAP LINE ITEMS

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013

(Unaudited, dollars in millions)

Three Months Ended September 30, 2014	GAAP			Specified Items*			Non GAAP
Gross Profit	$	2,914		$	36		$	2,950
Marketing, selling and administrative	1,029			(98		)	931
Research and development	983			(65		)	918
Other (income)/expense	(277		)	203			(74		)
Effective Tax Rate	27.4		%	(3.2		)%	24.2		%
Three Months Ended September 30, 2013	GAAP			Specified Items*			Non GAAP
Gross Profit	$	2,890		$	69		$	2,959
Marketing, selling and administrative	980			(4		)	976
Research and development	893			—			893
Other (income)/expense	5			(43		)	(38		)
Effective Tax Rate	15.4		%	2.4		%	17.8		%

* 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.

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BRISTOL-MYERS SQUIBB COMPANY

RECONCILIATION OF CERTAIN NON-GAAP LINE ITEMS TO CERTAIN GAAP LINE ITEMS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013

(Unaudited, dollars in millions)

Nine Months Ended September 30, 2014	GAAP			Specified Items*			Non GAAP
Gross Profit	$	8,655		$	120		$	8,775
Marketing, selling and administrative	2,937			(104		)	2,833
Research and development	3,345			(571		)	2,774
Other (income)/expense	(589		)	224			(365		)
Effective Tax Rate	18.0		%	4.8		%	22.8		%
Nine Months Ended September 30, 2013	GAAP			Specified Items*			Non GAAP
Gross Profit	$	8,598		$	224		$	8,822
Marketing, selling and administrative	3,016			(6		)	3,010
Research and development	2,774			—			2,774
Other (income)/expense	185			(301		)	(116		)
Effective Tax Rate	8.8		%	5.6		%	14.4		%

* 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.

14

BRISTOL-MYERS SQUIBB COMPANY

RECONCILIATION OF NON-GAAP EPS TO GAAP EPS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013

(Unaudited, dollars and shares in millions except per share data)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
Net Earnings Attributable to BMS used for Diluted EPS Calculation - GAAP	$	721	$	692	$	1,991	$	1,837
Less Specified Items*	29		76		323		340
Net Earnings used for Diluted EPS Calculation – Non-GAAP	$	750	$	768	$	2,314	$	2,177
Average Common Shares Outstanding – Diluted	1,670		1,662		1,668		1,659
Diluted Earnings Per Share — GAAP	$	0.43	$	0.42	$	1.19	$	1.11
Diluted EPS Attributable to Specified Items	0.02		0.04		0.20		0.20
Diluted Earnings Per Share — Non-GAAP	$	0.45	$	0.46	$	1.39	$	1.31

* Refer to the Specified Items schedule for further details.

15

BRISTOL-MYERS SQUIBB COMPANY

NET CASH/(DEBT) CALCULATION

AS OF SEPTEMBER 30, 2014 AND JUNE 30, 2014

(Unaudited, dollars in millions)

	September 30, 2014			June 30, 2014
Cash and cash equivalents	$	4,851		$	4,282
Marketable securities - current	2,370			2,893
Marketable securities - long term	4,328			3,876
Cash, cash equivalents and marketable securities	11,549			11,051
Short-term borrowings and current portion of long-term debt	(401		)	(365		)
Long-term debt	(7,267		)	(7,372		)
Net cash position	$	3,881		$	3,314

16

EX-99.2

Exhibit 99.2

BRISTOL-MYERS SQUIBB COMPANY

QUARTERLY TREND ANALYSIS OF REVENUES

(Unaudited, dollars in millions)

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		$	3,889		$	7,700		$	3,921		$	11,621				(4)%	(3)%	—	—
US and Puerto Rico	1,971			2,045			4,016			2,037			6,053			2,265			8,318			1,765			1,901			3,666			1,968			5,634					(3)%	(7)%	—	—
Europe	946			950			1,896			985			2,881			1,049			3,930			948			908			1,856			814			2,670					(17)%	(7)%	1%	2%
Rest of the World	765			835			1,600			805			2,405			890			3,295			830			811			1,641			838			2,479					4%	3%	(3)%	(4)%
Other	149			218			367			238			605			237			842			268			269			537			301			838					26%	39%	—	—
% 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		%	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		%	48.9		%	47.6		%	50.2		%	48.5		%
Europe	24.7		%	23.5		%	24.1		%	24.2		%	24.1		%	23.6		%	24.0		%	24.9		%	23.3		%	24.1		%	20.8		%	23.0		%
Rest of the World	20.0		%	20.6		%	20.3		%	19.8		%	20.1		%	20.0		%	20.1		%	21.8		%	20.9		%	21.3		%	21.4		%	21.3		%
Other	3.9		%	5.4		%	4.6		%	5.9		%	5.1		%	5.4		%	5.1		%	7.0		%	6.9		%	7.0		%	7.6		%	7.2		%

1

BRISTOL-MYERS SQUIBB COMPANY

REVENUES AND COMPOSITION OF CHANGE IN REVENUES

FOR THE PERIOD ENDED SEPTEMBER 30, 2014

(Unaudited, dollars in millions)

QUARTER-TO-DATE	Revenues				Analysis of % Change
	2014		2013		Total Change	Volume	Price	Foreign Exchange
US and Puerto Rico	$	1,968	$	2,037	(3)%	(8)%	5%	—
Europe	814		985		(17)%	(12)%	(6)%	1%
Rest of the World	838		805		4%	8%	(1)%	(3)%
Other	301		238		26%	N/A	N/A	—
Total	$	3,921	$	4,065	(4)%	(4)%	—	—
YEAR-TO-DATE	Revenues				Analysis of % Change
	2014		2013		Total Change	Volume	Price	Foreign Exchange
US and Puerto Rico	$	5,634	$	6,053	(7)%	(11)%	4%	—
Europe	2,670		2,881		(7)%	(4)%	(5)%	2%
Rest of the World	2,479		2,405		3%	9%	(2)%	(4)%
Other	838		605		39%	N/A	N/A	—
Total	$	11,621	$	11,944	(3)%	(3)%	—	—

2

BRISTOL-MYERS SQUIBB COMPANY

EARNINGS FROM OPERATIONS

(Unaudited, dollars and shares in millions except per share data)

	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		$	2,770		$	5,577		$	2,843		$	8,420				(6)%	(7)%
Alliance and other revenues	874			1,024			1,898			1,040			2,938			1,143			4,081			1,004			1,119			2,123			1,078			3,201					4%	9%
Total Revenues	$	3,831		$	4,048		$	7,879		$	4,065		$	11,944		$	4,441		$	16,385		$	3,811		$	3,889		$	7,700		$	3,921		$	11,621				(4)%	(3)%
Cost of products sold	1,063			1,108			2,171			1,175			3,346			1,273			4,619			968			991			1,959			1,007			2,966					(14)%	(11)%
Marketing, selling and administrative	994			1,042			2,036			980			3,016			1,068			4,084			957			951			1,908			1,029			2,937					5%	(3)%
Advertising and product promotion	189			218			407			194			601			254			855			163			187			350			171			521					(12)%	(13)%
Research and development	930			951			1,881			893			2,774			957			3,731			946			1,416			2,362			983			3,345					10%	21%
Other (income)/expense	(19		)	199			180			5			185			20			205			(208		)	(104		)	(312		)	(277		)	(589		)			**	**
Total Expenses	3,157			3,518			6,675			3,247			9,922			3,572			13,494			2,826			3,441			6,267			2,913			9,180					(10)%	(7)%
Earnings Before Income Taxes	$	674		$	530		$	1,204		$	818		$	2,022		$	869		$	2,891		$	985		$	448		$	1,433		$	1,008		$	2,441				23%	21%
Provision for Income Taxes	51			—			51			126			177			134			311			49			114			163			276			439					**	**
Net Earnings	$	623		$	530		$	1,153		$	692		$	1,845		$	735		$	2,580		$	936		$	334		$	1,270		$	732		$	2,002				6%	9%
Net Earnings/(Loss) Attributable to Noncontrolling Interest	14			(6		)	8			—			8			9			17			(1		)	1			—			11			11					**	38%
Net Earnings Attributable to BMS	$	609		$	536		$	1,145		$	692		$	1,837		$	726		$	2,563		$	937		$	333		$	1,270		$	721		$	1,991				4%	8%
Diluted Earnings per Common Share*	$	0.37		$	0.32		$	0.69		$	0.42		$	1.11		$	0.44		$	1.54		$	0.56		$	0.20		$	0.76		$	0.43		$	1.19				2%	7%
Average Common Shares Outstanding - Diluted	1,655			1,660			1,658			1,662			1,659			1,666			1,662			1,666			1,669			1,668			1,670			1,668					—	1%
Dividends declared per common share	$	0.35		$	0.35		$	0.70		$	0.35		$	1.05		$	0.36		$	1.41		$	0.36		$	0.36		$	0.72		$	0.36		$	1.08				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		%	74.5		%	74.6		%	74.3		%	74.5		%
Other Ratios
Effective tax rate	7.6		%	—			4.2		%	15.4		%	8.8		%	15.4		%	10.8		%	5.0		%	25.4		%	11.4		%	27.4		%	18.0		%
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		$	46		$	100		$	50		$	150				9%	3%
Investment income	(25		)	(28		)	(53		)	(23		)	(76		)	(28		)	(104		)	(23		)	(28		)	(51		)	(20		)	(71		)			(13)%	(7)%
Provision for restructuring	33			173			206			6			212			14			226			21			16			37			35			72					**	(66)%
Litigation charges/(recoveries)	—			(22		)	(22		)	17			(5		)	25			20			29			(20		)	9			10			19					(41)%	**
Equity in net income of affiliates	(36		)	(50		)	(86		)	(42		)	(128		)	(38		)	(166		)	(36		)	(33		)	(69		)	(12		)	(81		)			(71)%	(37)%
Out-licensed intangible asset impairment	—			—			—			—			—			—			—			—			—			—			18			18					**	**
Gain on sale of product lines, businesses and assets	(1		)	—			(1		)	—			(1		)	(1		)	(2		)	(259		)	7			(252		)	(315		)	(567		)			**	**
Other alliance and licensing income	(57		)	(32		)	(89		)	(31		)	(120		)	(28		)	(148		)	(108		)	(144		)	(252		)	(102		)	(354		)			**	**
Pension curtailments, settlements and special termination benefits	—			101			101			37			138			27			165			64			45			109			28			137					(24)%	(1)%
Other	17			7			24			(5		)	19			(4		)	15			50			7			57			31			88					**	**
	$	(19	)	$	199		$	180		$	5		$	185		$	20		$	205		$	(208	)	$	(104	)	$	(312	)	$	(277	)	$	(589	)			**	**

* Quarterly amounts may not add to the year-to-date totals due to rounding of individual calculations.

** In excess of 100%

3

BRISTOL-MYERS SQUIBB COMPANY

RECONCILIATION OF GAAP AND NON-GAAP GROWTH DOLLARS AND PERCENTAGES EXCLUDING FOREIGN EXCHANGE IMPACT

FOR THE PERIOD ENDED SEPTEMBER 30, 2014

(Unaudited, dollars in millions)

QUARTER-TO-DATE	2014			2013			Growth $		Growth %	Favorable / (Unfavorable) FX Impact $ *			2014 Excluding FX		Favorable / (Unfavorable) FX Impact % *	Growth % Excluding FX
Revenues	$	3,921		$	4,065		(144	)	(4)%	$	(18	)	$	3,939	—	(4)%
Gross profit	2,914			2,890			24		1%	N/A			N/A		N/A	N/A
Gross profit excluding specified items (a)	2,950			2,959			(9	)	—	N/A			N/A		N/A	N/A
Gross profit excluding specified items as a % of revenues	75.2		%	72.8		%
Marketing, selling and administrative	1,029			980			49		5%	5			1,034		1%	6%
Marketing, selling and administrative excluding specified items (a)	931			976			(45	)	(5)%	5			936		1%	(4)%
Advertising and product promotion	171			194			(23	)	(12)%	2			173		1%	(11)%
SG&A excluding specified items as a % of revenues	28.1		%	28.8		%
Research and development	983			893			90		10%	8			991		1%	11%
Research and development excluding specified items (a)	918			893			25		3%	8			926		1%	4%
Research and development excluding specified items as a % of revenues	23.4		%	22.0		%
YEAR-TO-DATE	2014			2013			Growth $		Growth %	Favorable / (Unfavorable) FX Impact $ *			2014 Excluding FX		Favorable / (Unfavorable) FX Impact % *	Growth % Excluding FX
Revenues	$	11,621		$	11,944		(323	)	(3)%	$	(32	)	$	11,653	—	(3)%
Gross profit	8,655			8,598			57		1%	N/A			N/A		N/A	N/A
Gross profit excluding specified items (a)	8,775			8,822			(47	)	(1)	N/A			N/A		N/A	N/A
Gross profit excluding specified items as a % of revenues	75.5		%	73.9		%
Marketing, selling and administrative	2,937			3,016			(79	)	(3)%	16			2,953		1%	(2)%
Marketing, selling and administrative excluding specified items (a)	2,833			3,010			(177	)	(6)%	16			2,849		1%	(5)%
Advertising and product promotion	521			601			(80	)	(13)%	4			525		—	(13)%
SG&A excluding specified items as a % of revenues	28.9		%	30.2		%
Research and development	3,345			2,774			571		21%	6			3,351		—	21%
Research and development excluding specified items (a)	2,774			2,774			—		—	6			2,780		—	—
Research and development excluding specified items as a % of revenues	23.9		%	23.2		%

(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.

4

BRISTOL-MYERS SQUIBB COMPANY

WORLDWIDE REVENUES FROM OPERATIONS BY PRODUCT

QUARTERLY REVENUES TREND ANALYSIS AND RECONCILIATION OF GAAP AND NON-GAAP GROWTH DOLLARS AND PERCENTAGES EXCLUDING FOREIGN EXCHANGE IMPACT

(Unaudited, dollars in millions)

	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	$	3,889	$	7,700	$	3,921	$	11,621			$	(144	)	$	(323	)	(4)%	(3)%	$	3,939	$	11,653	(4)%	(3)%	—	—
Virology(a)
Baraclude(b)	366		371		737		378		1,115		412		1,527		406		369		775		325		1,100				(53		)	(15		)	(14)%	(1)%	324		1,103		(14)%	(1)%	—	—
Hepatitis C Franchise(c)	—		—		—		—		—		—		—		—		—		—		49		49				49			49			N/A	N/A	49		49		N/A	N/A	N/A	N/A
Reyataz	361		431		792		375		1,167		384		1,551		344		362		706		338		1,044				(37		)	(123		)	(10)%	(11)%	342		1,055		(9)%	(10)%	(1)%	(1)%
Sustiva Franchise(d)	387		411		798		389		1,187		427		1,614		319		361		680		357		1,037				(32		)	(150		)	(8)%	(13)%	356		1,029		(8)%	(13)%	—	1%
Oncology(a)
Erbitux	162		171		333		183		516		180		696		169		186		355		187		542				4			26			2%	5%	187		544		2%	5%	N/A	N/A
Opdivo(e)	—		—		—		—		—		—		—		—		—		—		1		1				1			1			N/A	N/A	1		1		N/A	N/A	N/A	N/A
Sprycel	287		312		599		316		915		365		1,280		342		368		710		385		1,095				69			180			22%	20%	387		1,107		22%	21%	(1)%	(1)%
Yervoy	229		233		462		238		700		260		960		271		321		592		350		942				112			242			47%	35%	350		938		47%	34%	—	1%
Neuroscience(a)
Abilify(f)	522		563		1,085		569		1,654		635		2,289		540		555		1,095		449		1,544				(120		)	(110		)	(21)%	(7)%	450		1,539		(21)%	(7)%	—	—
Immunoscience(a)
Orencia(g)	320		352		672		375		1,047		397		1,444		363		402		765		444		1,209				69			162			18%	15%	448		1,222		19%	17%	(1)%	(1)%
Cardiovascular(a)
Eliquis	22		12		34		41		75		71		146		106		171		277		216		493				175			418			**	**	217		494		**	**	N/A	N/A
Diabetes Alliance(h)	358		438		796		432		1,228		455		1,683		179		27		206		42		248				(390		)	(980		)	(90)%	(80)%	43		248		(90)%	(80)%	—	—
Mature Products and All Other(i)	817		754		1,571		769		2,340		855		3,195		772		767		1,539		778		2,317				9			(23		)	1%	(1)%	785		2,324		2%	(1)%	(1)%	—
Total Excluding Diabetes Alliance	3,473		3,610		7,083		3,633		10,716		3,986		14,702		3,632		3,862		7,494		3,879		11,373				246			657			7%	6%	3,896		11,405		7%	6%	—	—

**	In excess of 100%
(a)	Key products listed do not represent all products in the respective therapeutic areas.
(b)	Includes generic sales of entecavir from a U.S. supply and distribution agreement with Par Pharmaceutical Companies, Inc.
(c)	Includes Daklinza (daclatasvir) revenues of $38M for the three and nine months ended September 30, 2014, and includes Sunvepra (asunaprevir) revenues of $11M for the three and nine months ended September 30, 2014.
(d)	The Sustiva Franchise includes sales of Sustiva and revenue from sales of bulk efavirenz included in the combination therapy, Atripla. Includes alliance and other revenue of $309M and $328M for the three months ended September 30, 2014 and 2013, respectively, and $894M and $998M for the nine months ended September 30, 2014 and 2013, respectively.
(e)	Includes alliance and other revenue from our alliance with Ono Pharmaceutical Company Ltd. in Japan.
(f)	Includes alliance and other revenue of $410M and $464M for three months ended September 30, 2014 and 2013, respectively, and $1,350M and $1,313M for the nine months ended September 30, 2014 and 2013, respectively.
(g)	Includes Orencia SubQ revenues of $192M and $118M for three months ended September 30, 2014 and 2013, respectively, and $488M and $302M for the nine months ended September 30, 2014 and 2013, respectively.
(h)	The nine months ended September 30, 2014 includes pre-divestiture revenues of Bydureon, Byetta, Farxiga/Forxiga/Xigduo, Onglyza/Kombiglyze, Symlin and Myalept of $153M and post-divestiture revenues of $95M.
(i)	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 $44M and $42M for the three months ended September 30, 2014 and 2013, respectively, and $137M and $177M for the nine months ended September 30, 2014 and 2013, respectively. Additionally, includes Avapro/Avalide revenues of $56M and $71M for the three months ended September 30, 2014 and 2013, respectively, and $171M and $173M for the nine months ended September 30, 2014 and 2013, respectively.

5

BRISTOL-MYERS SQUIBB COMPANY

DOMESTIC REVENUES FROM OPERATIONS BY PRODUCT

QUARTERLY REVENUES TREND ANALYSIS

(Unaudited, dollars in millions)

	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	$	1,901	$	3,666	$	1,968	$	5,634			(3)%	(7)%
Virology
Baraclude(b)	68		73		141		67		208		81		289		70		84		154		40		194				(40)%	(7)%
Reyataz	193		200		393		189		582		187		769		176		168		344		169		513				(11)%	(12)%
Sustiva Franchise(c)	251		275		526		259		785		307		1,092		228		266		494		284		778				10%	(1)%
Oncology
Erbitux	158		168		326		180		506		176		682		158		178		336		175		511				(3)%	1%
Sprycel	115		135		250		134		384		157		541		145		163		308		179		487				34%	27%
Yervoy(d)	159		140		299		130		429		148		577		146		173		319		191		510				47%	19%
Neuroscience
Abilify	328		378		706		378		1,084		435		1,519		325		417		742		407		1,149				8%	6%
Immunoscience
Orencia(e)	214		238		452		246		698		256		954		229		254		483		292		775				19%	11%
Cardiovascular
Eliquis	17		5		22		27		49		48		97		61		94		155		113		268				**	**
Diabetes Alliance(f)	292		320		612		308		920		322		1,242		114		—		114		—		114				(100)%	(88)%
Mature Products and All Other(g)	176		113		289		119		408		148		556		113		104		217		118		335				(1)%	(18)%
Total Excluding Diabetes Alliance	1,679		1,725		3,404		1,729		5,133		1,943		7,076		1,651		1,901		3,552		1,968		5,520				14%	8%

**	In excess of 100%
(a)	Domestic revenues include United States and Puerto Rico.
(b)	Includes generic sales of entecavir from a U.S. supply and distribution agreement with Par Pharmaceutical Companies, Inc.
(c)	The Sustiva Franchise includes sales of Sustiva, as well as revenue from sales of bulk efavirenz included in the combination therapy, Atripla.
(d)	Nine months ended September 30, 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
	3rd Qtr	9 Months	3rd Qtr	9 Months	Qtr vs. Qtr	YTD vs. YTD
Yervoy Revenues As Reported	191	510	130	429	47%	19%
Reversal of deferred revenues, net	—	—	—	(25)	—	(100)%
Yervoy Revenues - Adjusted	191	510	130	404	47%	26%

(e)	Includes Orencia SubQ revenues of $129M and $91M for three months ended September 30, 2014 and 2013, respectively, and $327M and $244M for the nine months ended September 30, 2014 and 2013, respectively.
(f)	Includes Bydureon, Byetta, Farxiga, Onglyza/Kombiglyze and Symlin and Myalept.
(g)	Represents all other products sold in the U.S., including those which have lost exclusivity in major markets.

6

BRISTOL-MYERS SQUIBB COMPANY

INTERNATIONAL REVENUES FROM OPERATIONS BY PRODUCT

QUARTERLY REVENUES TREND ANALYSIS

(Unaudited, dollars in millions)

	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	$	1,988	$	4,034	$	1,953	$	5,987			(4)%	2%	(1)%	—
Virology
Baraclude	298		298		596		311		907		331		1,238		336		285		621		285		906				(8)%	—	—	—
Hepatitis C Franchise(a)	—		—		—		—		—		—		—		—		—		—		49		49				N/A	N/A	N/A	N/A
Reyataz	168		231		399		186		585		197		782		168		194		362		169		531				(9)%	(9)%	(2)%	(2)%
Sustiva Franchise(b)	136		136		272		130		402		120		522		91		95		186		73		259				(44)%	(36)%	—	2%
Oncology
Erbitux	4		3		7		3		10		4		14		11		8		19		12		31				**	**	N/A	N/A
Opdivo(c)	—		—		—		—		—		—		—		—		—		—		1		1				N/A	N/A	N/A	N/A
Sprycel	172		177		349		182		531		208		739		197		205		402		206		608				13%	15%	(2)%	(2)%
Yervoy	70		93		163		108		271		112		383		125		148		273		159		432				47%	59%	1%	1%
Neuroscience
Abilify(d)	194		185		379		191		570		200		770		215		138		353		42		395				(78)%	(31)%	(1)%	1%
Immunoscience
Orencia	106		114		220		129		349		141		490		134		148		282		152		434				18%	24%	(2)%	(4)%
Cardiovascular
Eliquis	5		7		12		14		26		23		49		45		77		122		103		225				**	**	N/A	N/A
Diabetes Alliance(e)	66		118		184		124		308		133		441		65		27		92		42		134				(66)%	(56)%	—	—
Mature Products and All Other(f)	641		641		1,282		650		1,932		707		2,639		659		663		1,322		660		1,982				2%	3%	(1)%	—
Total Excluding Diabetes Alliance	1,794		1,885		3,679		1,904		5,583		2,043		7,626		1,981		1,961		3,942		1,911		5,853				—	5%	(1)%	(1)%

**	In excess of 100%
(a)	Includes Daklinza (daclatasvir) revenues of $38M for the three and nine months ended September 30, 2014, and includes Sunvepra (asunaprevir) revenues of $11M for the three and nine months ended September 30, 2014.
(b)	The Sustiva Franchise includes sales of Sustiva and revenue from sales of bulk efavirenz included in the combination therapy, Atripla.
(c)	Includes alliance and other revenue from our alliance with Ono Pharmaceutical Company Ltd. in Japan.
(d)	Includes revenue from the co-promotional agreement with Otsuka Pharmaceutical Co., Ltd.
(e)	Includes Bydureon, Byetta, Forxiga/Xigduo, Onglyza/Kombiglyze, Symlin and Myalept.
(f)	Represents all other products, including those which have lost exclusivity in major markets, over the counter brands and royalty-related revenue.

7

BRISTOL-MYERS SQUIBB COMPANY

RECONCILIATION OF CERTAIN NON-GAAP LINE ITEMS TO CERTAIN GAAP LINE ITEMS

(Unaudited, dollars in millions)

	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		$	2,898		$	5,741		$	2,914		$	8,655
Specified items (a)	85			70			155			69			224			102			326			45			39			84			36			120
Gross profit excluding specified items	2,853			3,010			5,863			2,959			8,822			3,270			12,092			2,888			2,937			5,825			2,950			8,775
Marketing, selling and administrative	994			1,042			2,036			980			3,016			1,068			4,084			957			951			1,908			1,029			2,937
Specified items (a)	(1		)	(1		)	(2		)	(4		)	(6		)	(10		)	(16		)	(3		)	(3		)	(6		)	(98		)	(104		)
Marketing, selling and administrative excluding specified items	993			1,041			2,034			976			3,010			1,058			4,068			954			948			1,902			931			2,833
Research and development	930			951			1,881			893			2,774			957			3,731			946			1,416			2,362			983			3,345
Specified items (a)	—			—			—			—			—			(16		)	(16		)	(48		)	(458		)	(506		)	(65		)	(571		)
Research and development excluding specified items	930			951			1,881			893			2,774			941			3,715			898			958			1,856			918			2,774
Other (income)/expense	(19		)	199			180			5			185			20			205			(208		)	(104		)	(312		)	(277		)	(589		)
Specified items (a)	(19		)	(239		)	(258		)	(43		)	(301		)	(39		)	(340		)	88			(67		)	21			203			224
Other (income)/expense excluding specified items	(38		)	(40		)	(78		)	(38		)	(116		)	(19		)	(135		)	(120		)	(171		)	(291		)	(74		)	(365		)
Effective Tax Rate	7.6		%	—			4.2		%	15.4		%	8.8		%	15.4		%	10.8		%	5.0		%	25.4		%	11.4		%	27.4		%	18.0		%
Specified items (a)	3.4		%	13.8		%	8.3		%	2.4		%	5.6		%	2.5		%	4.6		%	18.0		%	(4.1		)%	10.7		%	(3.2		)%	4.8		%
Effective Tax Rate excluding specified items	11.0		%	13.8		%	12.5		%	17.8		%	14.4		%	17.9		%	15.4		%	23.0		%	21.3		%	22.1		%	24.2		%	22.8		%

(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.

8

BRISTOL-MYERS SQUIBB COMPANY

SPECIFIED ITEMS

(Unaudited, dollars in millions)

	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		$	39		$	84		$	36		$	120
Amortization of acquired Amylin intangible assets	138			137			275			137			412			137			549			—			—			—			—			—
Amortization of Amylin alliance 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			39			84			36			120
Additional year of Branded Prescription Drug Fee	—			—			—			—			—			—			—			—			—			—			96			96
Process standardization implementation costs	1			1			2			4			6			10			16			3			3			6			2			8
Marketing, selling and administrative	1			1			2			4			6			10			16			3			3			6			98			104
Upfront, milestone and other payments	—			—			—			—			—			16			16			15			148			163			65			228
IPRD impairments	—			—			—			—			—			—			—			33			310			343			—			343
Research and development	—			—			—			—			—			16			16			48			458			506			65			571
Provision for restructuring	33			173			206			6			212			14			226			21			16			37			35			72
Gain on sale of product lines, businesses and assets	—			—			—			—			—			—			—			(259		)	12			(247		)	(315		)	(562		)
Pension curtailments, settlements and special termination benefits	—			99			99			37			136			25			161			64			45			109			28			137
Acquisition and alliance related items(a)	—			(10		)	(10		)	—			(10		)	—			(10		)	16			17			33			39			72
Litigation charges/(recoveries)	—			(23		)	(23		)	—			(23		)	—			(23		)	25			(23		)	2			10			12
Loss on debt redemption	—			—			—			—			—			—			—			45			—			45			—			45
Upfront, milestone and other licensing receipts	(14		)	—			(14		)	—			(14		)	—			(14		)	—			—			—			—			—
Other (income)/expense	19			239			258			43			301			39			340			(88		)	67			(21		)	(203		)	(224		)
Increase/(decrease) to pretax income	105			310			415			116			531			167			698			8			567			575			(4		)	571
Income tax on items above	(35		)	(116		)	(151		)	(40		)	(191		)	(51		)	(242		)	(179		)	(102		)	(281		)	33			(248		)
Increase/(decrease) to net earnings	$	70		$	194		$	264		$	76		$	340		$	116		$	456		$	(171	)	$	465		$	294		$	29		$	323

(a) Includes $16 million of additional year of Branded Prescription Drug Fee.

9

BRISTOL-MYERS SQUIBB COMPANY

SELECTED BALANCE SHEET INFORMATION

(Unaudited, dollars in millions)

	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		$	4,282		$	4,851
Marketable securities - current	1,178			978			951			939			1,834			2,893			2,370
Marketable securities - long term	3,242			3,223			3,623			3,747			3,558			3,876			4,328
Cash, cash equivalents and marketable securities	5,775			6,022			6,345			8,272			10,617			11,051			11,549
Short-term borrowings and current portion of long-term debt	(1,372		)	(764		)	(680		)	(359		)	(281		)	(365		)	(401		)
Long-term debt	(6,522		)	(6,442		)	(6,532		)	(7,981		)	(7,367		)	(7,372		)	(7,267		)
Net cash/(debt) position	$	(2,119	)	$	(1,184	)	$	(867	)	$	(68	)	$	2,969		$	3,314		$	3,881

10

BRISTOL-MYERS SQUIBB COMPANY

2014 FULL YEAR PROJECTED DILUTED EPS FROM OPERATIONS

EXCLUDING PROJECTED SPECIFIED ITEMS

	Full Year 2014
Projected Diluted Earnings Attributable to Shareholders per Common Share - GAAP	$1.15 to $1.25
Projected Specified Items:
Downsizing and streamlining of worldwide operations	0.15
Upfront and milestone payments, net	0.12
Gain on diabetes business divestiture and other related impacts	(0.27	)
Pension settlements	0.33
Impairment Charges	0.13
Additional year of Branded Prescription Drug Fee	0.07
Other	0.02
Total	0.55
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 nine months ended September 30, 2014 was 74.5% and 75.5%, 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 nine months ended September 30, 2014 were $3.3 billion and $2.8 billion, 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 nine months ended September 30, 2014 were $2.9 billion and $2.8 billion, respectively. On a GAAP basis, expenses for the nine months ended September 30, 2014 included specified items of $104 million. 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 nine months ended September 30, 2014 was 18.0%. On a non-GAAP basis, for the nine months ended September 30, 2014 the effective tax rate was 22.8%. On a non-GAAP basis, the Company projects an annual effective tax rate of between 19% and 20%. 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, in-process research and development (IPRD) and asset impairments, upfront and milestone payments, restructuring, charges and recoveries relating to significant legal proceedings, pension related items and additional charges related to the Branded Prescription Drug Fee.  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 IPRD 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 Third Quarter 2014 Financial Results, October 24, 2014 including “2014 Financial Guidance” and “Use of non-GAAP Financial Information” therein. 

11